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Department of Labor ruling on independent contractors likely to land early Tuesday

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© Reuters. FILE PHOTO: A food delivery person rides an electric bike during a snowstorm in New York City, US February 19, 2021. REUTERS/Brendan McDermid/File Photo

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By Nandita Bose

WASHINGTON (Reuters) – A proposed Department of Labor law that determines whether workers in transportation, retail and delivery companies have been erroneously identified as independent contractors is expected to be released early Tuesday, two sources familiar with the matter said.

Details of the new rule have not been announced. But management is expected to base it on legal guidance that says people who are economically dependent on a company are employees, or go further to expand the pool of workers who should receive benefits, legal experts said.

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The Labor Department has scheduled a press conference for 9:30 a.m. ET on Tuesday with labor attorney Sima Nanda and principal deputy director of wages and hours Jessica Loman but did not provide any details on what they would discuss.

The Labor Department and the White House declined to comment.

The White House Office of Information and Regulatory Affairs (OIRA) completed a review of the base on September 29, according to White House records.

Rules are usually cleared in three weeks to a month, but the independent contractor rule has been with the White House’s OIRA office for about three months, said Tim Taylor, a litigation attorney and partner at Holland & Knight, who served as deputy attorney for the Department of Labor. .

He said that the lengthy review period in the White House indicates that the rule proposed by the Department of Labor is either long and complex or that the White House wants something different than what the department proposed.

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“Usually when that happens it’s because the White House wants something more aggressive,” he said.

Reuters recently reported that groups representing employers have been trying, and failing, to convince the labor-friendly White House that any large-scale rule would harm workers who want to remain independent and have flexibility.

More than a third of workers in the United States, or nearly 60 million people, have done some type of independent work in the past 12 months, a December 2021 survey by Free Labor Market found. until work (NASDAQ 🙂 showed.

Defining independent contractors broadly as employees will force companies to pay benefits, such as overtime pay and health, to the detriment of their bottom line. Employers can save about 30% by skipping payroll taxes, unemployment costs and benefits, workers groups estimate.

During separate meetings with the White House to discuss the rule, several labor groups have argued that a growing number of companies, including in health care, are misclassifying hundreds of thousands of workers. They said these workers are often left without social safety nets, accident coverage or paid sick leave, and are under pressure from rising gas prices.

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This is President Joe Biden’s second attempt to reset the rules on how employees are defined. A federal judge in Texas ruled in March that the Biden administration, which had withdrawn a rule from the Trump era that favored business groups on the issue, did not follow appropriate procedures.

The proposed rule will be open for public comment before the Labor Department issues a final rule, which companies are expected to quickly challenge in court.

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Citigroup CEO expects trading revenue to rise 10% in fourth quarter, but investment banking slips by Reuters

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© Reuters. FILE PHOTO: The Citibank logo is seen on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, US, August 3, 2021. REUTERS/Andrew Kelly/File Photo

NEW YORK (Reuters) – Citigroup Chief Executive Jane Fraser said on Wednesday that revenue in its trading division will rise 10 percent in the current quarter from a year earlier, but investment banking fees will fall 60 percent, in line with industry.

The trading desks have been a surprising bright spot for some of the largest US banks this year as clients reorganized their portfolios across asset classes in response to the cooling markets.

“We’re hoping for a 10% (increase) in the markets based on what we saw in October and November,” Fraser told the Goldman Sachs (NYSE) Financial Services Conference.

But Wall Street investment bankers who were steeped in deals in 2021 have seen activity dip as volatility in capital markets, geopolitical tensions and risk sentiment dampen appetite for deals.

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As stock market listings fade and companies tighten the brakes on deal-making, investment banking revenues have fallen sharply across the industry. The tough operating environment has also led to job cuts at major lenders, with executives warning of more pain ahead.

Separately, in line with previously announced plans to streamline the global banking giant, Fraser said Citi is moving ahead with divestments, exiting the retail banking business in non-core international markets.

“From a strategic perspective, I think we’re all pleased with the progress and how we’re starting to see some initial results materialize in the data,” added Fraser.

Citi is in advanced talks with suitors looking to buy Mexican retail bank Banamex, according to media reports earlier this week. Citi said in January it was looking for a buyer for the unit.

Citigroup (NYSE:) The $12.5 billion acquisition of Banamex in 2001 was the largest ever in Mexico at the time.

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Royal Caribbean mistake causes huge passenger problem

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When people book a vacation, they make those plans months, sometimes years, in advance. This is because, in most cases, going on a trip, especially one that not only involves your family, but maybe even family and friends, there are a lot of moving pieces.

You have to find a time in the calendar that matches when adults can be off work and kids out of school. This can be difficult and often requires people to take time off from their employers, move other things, or arrange child or elderly care for children who are not making the trip.



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SEC Head Says Crypto Brokers Must Comply With Law By Reuters

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© Reuters. FILE PHOTO: U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testifies before the Senate Banking, Housing, and Urban Affairs Committee during a hearing on Capitol Hill in Washington, U.S., on September 15, 2022. REUTERS/Evelyn H.

WASHINGTON (Reuters) – U.S. Securities and Exchange Commission Chairman Gary Gensler said companies that help facilitate transactions in the cryptocurrency market must comply with the law.

Gensler told Yahoo Finance in an interview on Tuesday that the SEC has enough powers but could use more resources. He described crypto brokers as “crypto casinos”.

The head of the Securities and Exchange Commission added that next Wednesday, the agency will take recommendations from agency employees regarding the stock market structure.

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