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Labor board accuses Apple of suppressing employee discussions

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Labor board accuses Apple of suppressing employee discussions

Apple has been accused by the National Labor Relations Board of trying to prevent employees from discussing pay equity and pressuring an engineer who attempted to circulate an online survey about wages to quit.

In a complaint issued last week by the NLRB’s regional office in Oakland, federal labor regulators alleged Apple has unlawfully blocked discussion among workers in corporate offices by enforcing overly broad confidentiality rules and restricting their activity on the Slack messaging app and social media, as well as hampering their conversations with journalists.

The complaint alleges the company in 2021 barred employees from creating a Slack channel called #community-pay-equity and prohibited workers from discussing the financial incentives Apple uses to reach sales goals by claiming the topic included “confidential and proprietary information.”

Apple has publicly denied the allegations. “We strongly disagree with these claims,” a company spokesperson told Reuters. Apple did not immediately respond to a request for comment from The Times.

According to the complaint, Cher Scarlett, an engineer at Apple, faced reprisals after she participated in Slack discussions about workplace discrimination, helped found a campaign called “Apple Too” modeled after the #MeToo movement that was meant to encourage employees to share their experiences with racism and sexism, and created an online employee survey about pay equity.

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Instead of addressing her requests that the company clarify its rules regarding pay discussions, NLRB investigators found Apple told an attorney representing Scarlett at the time that she needed to stop making social media posts, while also pressing her to go on medical leave and offering her a severance agreement. These actions by the company, the complaint said, unlawfully forced Scarlett to quit.

Apple managers allegedly threatened other employees who posted on social media and in Slack and spoke to the press about workplace concerns, according to the complaint. Some were interrogated about their involvement with Scarlett’s pay equity survey and were told their activities were being monitored, and that they could be demoted, according to the complaint.

Issuing the complaint represents the NLRB’s first step in litigating the case after investigating an unfair labor practice claim submitted by employees and finding merit to the allegations. If a settlement with Apple is not reached, the case will be reviewed by an administrative law judge at a hearing scheduled for next June. The judge’s decision on what, if anything, Apple must do to address the issues raised in the complaint could then be appealed to the labor board in Washington and from there it could be appealed to federal court.

The NLRB’s general counsel is asking for a court order that would require Apple to post notices in offices and electronically in Slack and email explaining the rights of employees, as well as to conduct training for managers, supervisors and employees. The NLRB is also looking to force Apple to reinstate Scarlett, compensate her for lost pay and issue an apology letter.

The complaint is the third in recent weeks to hit Apple.

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On Sep. 27, the board’s regional office in Los Angeles issued a complaint accusing Apple of requiring employees across the U.S. to sign overly broad confidentiality and non-compete agreements and adhere to sweeping policies on misconduct and social media that violated employees’ ability to exercise their rights under federal labor law. The complaint stems from charges filed in 2021 by Ashley Gjovik, a former senior engineering program manager at the company, who claimed that an email sent by Apple Chief Executive Tim Cook, in which he pledged to punish employees who leaked company information, had a chilling effect on workers’ discussions of pay equity and discrimination.

And on Oct. 9, the NLRB’s office in Oakland issued another complaint alleging the company had maintained unlawful work rules and created an impression of surveillance, unfairly enforced policies and wrongly terminated an employee for their involvement in an open letter criticizing a technology entrepreneur Apple had hired. The complaint arose from claims made by Janneke Parrish, a former Texas-based product manager on Apple Maps and a leader of a #MeToo activist movement within Apple, who was fired in 2021.

The complaints by federal regulators highlight ongoing turmoil around organizing efforts by Apple employees both at the iPhone maker’s corporate headquarters and at retail stores. In recent years the board has also lodged complaints that Apple interrogated its retail workers in New York about their union support and confiscated pro-labor fliers in a store break room, and similarly interrogated employees in an Atlanta store and told staff that they would be in a less advantageous position if they voted for a union.

The company has denied wrongdoing.

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The Container Store files for bankruptcy amid stiff competition

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The Container Store files for bankruptcy amid stiff competition

The Container Store has filed for Chapter 11 bankruptcy protection amid steep losses, slumping sales and increased competition.

Business in its stores and online will continue as usual while it restructures, the Texas-based home goods, storage and custom closets chain said late Sunday. Customer deposits for in-home services will be honored, and merchandise orders will be delivered as normal.

“The Container Store is here to stay,” Chief Executive Satish Malhotra said in a statement. “Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business.”

The Container Store peaked in its 2021 fiscal year, when the company exceeded $1 billion in sales for the first time and posted record earnings as consumers spent heavily on home remodeling and redecorating projects during months of pandemic quarantine. A national de-cluttering craze, set off by organization expert Marie Kondo, also benefited the chain.

But since then, the Container Store has struggled.

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Part of the company’s struggles are due to competition from rivals including Target, Walmart and Amazon, which often sell storage items that are similarly stylish at a lower price point. And with housing prices and mortgage rates remaining stubbornly high, many prospective home buyers have been forced to wait on the sidelines, dampening demand for a wide range of products and services that come with outfitting a new property.

For the three months ended Sept. 28, the Container Store reported a loss of $16.1 million. Sales totaled $196.6 million, down 10.5% compared with the same quarter a year earlier. Same-store sales fell 12.5%.

Founded in 1978, the Container Store operates more than 100 stores around the country. In Los Angeles County, it has locations in Century City, El Segundo, Pasadena and Woodland Hills.

It filed for bankruptcy protection in the Southern District of Texas, two weeks after the New York Stock Exchange notified the company that its shares would be suspended for failing to maintain an average global market capitalization of at least $15 million over 30 consecutive trading days.

The Container Store said it expected to confirm a plan of reorganization within 35 days and emerge from bankruptcy soon after as a private company. The company said at least 90% of its term loan lenders had pledged $40 million in new money financing.

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The Chapter 11 process does not include Elfa, a separate customized closet business based in Sweden, which is owned by the Container Store.

In an email to customers Monday, Malhotra said the company had felt “the impact of the challenging macro-economic environment” but reassured them that “our obligations to you will be fulfilled as expected.”

“You can feel confident that any orders, deposits or business you have with us are safe,” he said.

It has been a tough month for large-format retail chains. Last week Party City filed for Chapter 11 bankruptcy and said it would close all of its roughly 700 stores nationwide, and Big Lots said it would begin going-out-of-business sales at about 870 stores after a deal to sell the company fell through.

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Judge enters default judgment in suit against Kanye West's private school

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Judge enters default judgment in suit against Kanye West's private school

A judge entered a default judgment against Kanye West’s Christian private school in Los Angeles Superior Court on Wednesday in connection with a lawsuit filed by a former employee.

Isaiah Meadows, Yeezy Christian Academy’s former assistant principal, sought a default judgment in his wrongful termination and unpaid wages lawsuit against the school — later rebranded Donda Academy — and other defendants for failure to appear through licensed attorneys.

The judge, Christopher K. Lui, ruled in favor of Meadows’ motion. He also ruled that the answers given by defendants — Yeezy Christian Academy, Donda Services LLC and Strokes Canyon LLC — in response to Meadows’ complaint be stricken.

Last year, a lawyer representing West, and the three other defendants denied “each and every allegation of Meadows complaint,” in a filing with the court.

In August, Brian Blumfield, West’s most recent attorney who was representing the music mogul and other business entities in the matter, sought his removal from the case on the grounds that the defendants had terminated their relationship in June and that they had refused to speak to or pay Blumfield, according to court filings. The judge granted the request.

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Meadows had alleged that he brought many of the school’s health and safety issues to the attention of West and the school’s director. But they were left unaddressed and Meadows was later fired.

According to the complaint, a skylight in one of the classrooms didn’t have glass, allowing rain to fall in the building. West reportedly did not like glass.

“Water would soak into the floor, which would lead to a moldy smell for the next few days.”

Further, electrical and telephone wires were also allegedly left exposed and on one occasion an electrical fire started near a student dining area.

In 2020, Meadows was offered $165,000 salary to work, according to the suit. However, he claimed that West later reneged on his promise to pay for his rent after doing so for three months — Meadows had relocated with his family from North Hollywood to Calabasas to work at the school.

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The rent payments ended in February 2021, Meadows claimed after he “was suspended after calling for meetings and raising concerns regarding operations of the school.”

Meadows alleged that his salary was then cut and he was later demoted and worked as a teacher’s assistant and physical education teacher. That April, he sent an email outlining his concerns about his pay and that of other staff members.

Nearly two weeks before the new school year was to start in 2022, Meadows was told that he was being terminated “with no explanation as to why.”

The suit is one of at least five filed against West and Donda Academy since 2023 that allege a hostile workplace as a result of West’s conduct, which includes claims of discrimination and antisemitism, and retaliation, as well as various health and safety issues at the school’s property that was located first in Calabasas, then Simi Valley and finally in Chatsworth.

Donda Academy abruptly shut down in October 2022, amid a cascade of fallout from West’s antisemitic comments, which led a number of his business partners such as the Gap and Adidas to sever ties with him.

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There were reports that the school reopened shortly thereafter; however, according to the California Department of Education, the school has been closed since June of this year.

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Santa, aka the IRS, might be dropping $1,400 into your stocking this year

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Santa, aka the IRS, might be dropping ,400 into your stocking this year

Everyone’s favorite Christmas gift giver, the Internal Revenue Service, has announced that it will be doling out more than $2 billion in checks to Americans this month as part of its effort to make sure everyone received their stimulus payments from 2021.

The federal tax agency has announced that an internal review showed many Americans had never received their economic impact payments, which were supposed to go out following the filing of 2021 tax returns. Because of this, the agency is paying out the money they still owe Americans who never received their checks.

Although most eligible Americans received their stimulus payments, the checks will be sent to those who qualified but filed a 2021 tax return that left the space for recovery rebate credit blank.

Those people are eligible for up to $1,400 from the federal government. The payments should be received by late January 2025, at the latest.

“These payments are an example of our commitment to go the extra mile for taxpayers. Looking at our internal data, we realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible,” said IRS Commissioner Danny Werfel. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”

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Stimulus payments of $1,400 were sent out to Americans as part of a $1.9-trillion COVID-19 relief bill. Millions of Americans were eligible for the payments.

To get a check, Americans were required to make less than $75,000 per year or under $150,000 as a household.

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