Business

(CALIFORNIA) — The California ride-hailing driver suing over the controversial Proposition 22 law said he can “breathe a little easier” after a judge ruled it unconstitutional, but an ongoing legal battle still looms as industry giants ready an appeal.

Proposition 22 — a ballot measure backed by Uber, Lyft and others — defines rideshare and related gig workers as independent contractors instead of employees, a distinction providing them less labor protections under state law.

Corporations spent more than $200 million in support of the measure, according to The Associated Press. Proposition 22 was approved by California voters last November, winning 58% of the vote.

Last Friday, however, Alameda County Superior Court Judge Frank Roesch ruled that Proposition 22 was unconstitutional and unenforceable after a lawsuit was brought forth by three drivers and the Service Employees International Union.

“The court ruling isn’t just about us drivers or Uber or Lyft,” Hector Castellanos, a full-time rideshare driver and one of the plaintiffs on the suit, told reporters during a call organized by the SEIU on Monday. “To me, it also means that corporations can’t spend their way out of following the law.”

“There’s a lot to celebrate, and now I feel like I can breathe a little easier,” Castellanos added. “Sometimes it’s hard to find the words to describe how much this means to me. But one thing for sure is that I’m excited to share this news with more drivers and continuing to speak out and to stand up for our rights.”

Fellow rideshare driver and plaintiff Michael Robinson added that he feels “relieved.”

“Prop 22 was deceptively written by gig corporations to protect their profits,” Robinson said during a press conference organized by the SEIU in California. “I want others to remember that and the court’s ruling as these same gig corporations try to take copy-cat laws on the road.”

“I’m happy that the court sided with drivers, but the fight is far from over,” Robinson said. “We’re going to keep putting a spotlight on how the gig corporations are putting their profits above their workers.”

“We won’t stop until we’re treated with the dignity and respect we deserve,” he added.

Cherri Murphy, a rideshare driver from Oakland, California, told ABC News Monday that she worked at Lyft for three years before she stopped as the pandemic hit last spring because she was worried about risking her and her family’s exposure to the virus. She still works as an organizer fighting for the rights of rideshare drivers in the state.

“This court ruling that Proposition 22 is unconstitutional is a major victory to all drivers across California,” she told ABC News Monday. “What it indicates is that this fight is not over, and it’s a major step of building a more powerful movement for protecting app-based drivers.”

Murphy said the law “disproportionately hurt African Americans, people of color, immigrants and low-wage workers,” and dubbed it a “corporate power grab.”

Lyft referred ABC News’ request for comment to Geoff Vetter, a spokesperson for a group dubbed the Protect App-Based Drivers & Services Coalition that is backed by Uber, Lyft and others and was a defendant in the SEIU suit.

“We believe the judge made a serious error by ignoring a century’s worth of case law requiring the courts to guard the voters’ right of initiative,” Vetter said in a statement. “This outrageous decision is an affront to the overwhelming majority of California voters who passed Prop 22.”

“We will file an immediate appeal and are confident the Appellate Court will uphold Prop 22,” Vetter added. “Importantly, this Superior Court ruling is not binding and will be immediately stayed upon our appeal. All of the provisions of Prop 22 will remain in effect until the appeal process is complete.”

Vetter also shared a comment from Jim Pyatt, a California app-based rideshare driver who supported Proposition 22.

“This ruling is wrong and disrespectful to the hundreds of thousands of app-based rideshare and delivery drivers like me who actively supported Prop 22,” Pyatt stated.

“It’s clear that the special interests behind this frivolous challenge are attacking the overwhelming will of the voters and the decisive wishes of drivers who fought to remain independent,” he added.

An Uber spokesperson told ABC News that it plans to appeal, and that the measure will remain in effect pending the appeal.

“This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law. You don’t have to take our word for it: California’s Attorney General strongly defended Proposition 22’s constitutionality in this very case,” company spokesperson Noah Edwardsen said in a statement.

“We will appeal and we expect to win,” Edwardsen added. “Meanwhile, Prop. 22 remains in effect, including all of the protections and benefits it provides independent workers across the state.”

Murphy told ABC News that Uber’s announcement does not come as a surprise.

“It doesn’t surprise me but yet it disappoints me,” Murphy said.

Scott Kronland, an attorney representing the SEIU in the suit, said during a call with reports Monday that Judge Roesch’s ruling is “solid” and “well-reasoned.”

“There were several ways in which the drafters of the initiative overreached and included provisions that conflict with our state constitution, which is the higher law, and therefore we expect that the ruling will be upheld on appeal,” Kronland said.

Alma Hernandez, the executive director of the SEIU California, added that she hopes the judge’s ruling will send a “clear” message to states elsewhere that try to enact similar legislation.

“When you’re going to try to go to the ballot to purchase your own law to deny workers basic rights, there will be a fight, and the law will be continued to be upheld by our courts,” Hernandez said.

“I know that this is a national agenda that these companies have tried to run across the country, and they’re trying to mimic Prop. 22 across in other states, but it serves as a warning that these fights will be challenged,” she added. “And they are not on the right side of history.”

Copyright © 2021, ABC Audio. All rights reserved.

(NEW YORK) — In the exploding realm of cryptocurrencies, a new line of financial products has emerged that has caught the attention of both investors and regulators — so-called “stablecoins,” which are backed by cash or another reserve asset.

Stablecoins seek to provide the best of both worlds: the stability of a traditional government-backed currency as well as the privacy and convenience offered by crypto transactions. They are often marketed towards investors who may not have the stomach for the volatility associated with Bitcoin, Ethereum and other popular cryptos — which have been known to see-saw widely in value on a day-to-day basis.

The existing stablecoins market is worth some $113 billion, U.S. Securities and Exchange Commission Chair Gary Gensler said earlier this month during a speech at the Aspen Security Forum. He added that in July, nearly three-quarters of trading on all crypto trading platforms occurred between a stablecoin and some other token.

Even social media behemoth Facebook is trying to get in on the action, seeking to launch a stablecoin-like project of its own of its own after its initial Libra cryptocurrency efforts fizzled.

As their popularity rises, stablecoins have also recently drawn new scrutiny from authorities and regulators. Federal Reserve officials mulled over the threats posed by “new financial arrangements such as stablecoins” in a recent meeting, according to a readout released earlier this week, raising concerns over the lack of transparency and regulations.

Treasury Secretary Janet Yellen last month also called on regulators to “act quickly” in forming new regulatory frameworks for stablecoins, raising alarms over their “potential risks to end-users, the financial system, and national security.”

Here is what experts say investors should know about the novel class of cryptos dominating headlines in recent weeks.

What are stablecoins?
Stablecoins are essentially cryptocurrencies that are backed by a reserve asset — usually a traditional currency such as the U.S. dollar. The valuations of stablecoins are therefore supposed to be less volatile than other digital currencies, because they are pegged directly to a fixed, non-virtual currency.

“Think of stablecoin as a cryptocurrency without, or with limited, volatility. That is the best way to think about it,” Haran Segram, a professor of finance at New York University’s Stern School of Business, told ABC News, adding they are sometimes looked at as “the bridge between fiat currencies and cryptocurrencies.” Fiat currencies are traditional currencies like the dollar, backed by the government.

“Stablecoins are backed by other central bank currencies,” Segram explained.

Bryan Routledge, an associate professor of finance at Carnegie Mellon University’s Tepper School of Business, added that this makes stablecoins more useful as an everyday currency.

“For example, the price of Bitcoin is just stunningly volatile,” he told ABC News. “That makes it harder to use as a currency.” In 2021 alone, Bitcoin’s value has seen swings of 100% — starting the year at a price of less than $30,000, reaching a peak of over $63,000 in April, before receding back to the $30,000 mark in July. As of Friday, Bitcoin was trading at a little over $46,000.

“When I tell you a latte cost $2.50, you know what that means — but if I quote a price of a latte in Bitcoin, it’s just really hard to keep track of because one day it’s the equivalent of $2.50, the next day it’s equivalent to $25,” he added.

Pegging cryptocurrencies to a fixed exchange rate relative to the U.S. dollar, as stablecoins attempt to do, makes them “more useful as a currency,” according to Routledge.

‘It’s a stablecoin because they call it a stablecoin’
While this may sound like an overall positive development for everyday investors interested in crypto, experts and authorities have warned of lurking risks associated with the largely unchecked stablecoin market.

Segram noted that one of the most popular stablecoins out there is Tether, which claims to be backed one-to-one to the U.S. dollar.

“The issue with that is some research was done into that, and then actually they found that one unit of that stablecoin is backed by .74 of the U.S. dollar,” Segram said. “So things like that, what people put out saying it’s a stablecoin, it might not be truly a stablecoin.”

“That’s something that investors and your audience should be aware of,” he told ABC News. “Because people don’t know exactly what’s happening in the background, and I would really encourage your readers to be aware of that.”

New York Attorney General Letitia James’ office led an investigation into Tether that said there were periods of time when Tether did not have access to banking and “held no reserves to back tethers in circulation at the rate of one dollar for every tether, contrary to its representations.” As part of a settlement reached with James’ office, Tether is barred from doing business with New Yorkers but admitted no wrongdoing and pledged increased transparency. The Hong Kong-based entity still maintains on its website, however, that Tether tokens are “100% backed by Tether’s reserves” at a conversion rate of one Tether token equaling one U.S. dollar.

“Under the terms of the settlement, we admit no wrongdoing,” Tether said in a statement on its website in response to the investigation. “The settlement amount we have agreed to pay to the Attorney General’s Office should be viewed as a measure of our desire to put this matter behind us and focus on our business.” The company added that it is pleased by the “loyalty” customers have shown, saying that the market capitalization of tethers grew from $2 billion to an excess of $34 billion during the past two years, while the investigation was ongoing.

“Tether is complicated because it’s an international business,” Routledge added in regards to who regulates it. “Cryptocurrencies, one of their either charms or weak points, is they don’t sort of fall under anybody’s direct jurisdiction.”

For most stablecoins, “it’s a stablecoin because they call it a stablecoin,” Routledge added.

Despite assurances of cash reserves, there is a risk that some stablecoins might operate under the assumption that the likelihood of having to liquidate all at once is slim if confidence remains high.

“If everybody thinks Tether is going to be a stablecoin, it will work as a stablecoin and the few people that need to exchange it at the ‘Tether store,’ to be colloquial, would do that,” he said. “The trouble with that policy is that you can get what the foreign exchange economists would call like a speculative attack, which is that we don’t think Tether has enough money, and I think everybody thinks that, they’re all going to show up and demand those currencies — It’s a bit like a run on the bank.”

“That’s what makes it really hard to stabilize, because your credibility as a stablecoin is the thing that makes it stable, and that’s inherently flighty,” he said.

Why the Fed and Yellen are so concerned about stablecoins
Yellen’s calls for quick action on creating regulatory frameworks for stablecoins have been echoed by other lawmakers.

Stablecoins were also recently debated by Fed officials, who “highlighted the fragility and the general lack of transparency associated with stablecoins,” at their most recent Federal Open Market Committee meeting. “The importance of monitoring them closely, and the need to develop an appropriate regulatory framework to address any risks to financial stability associated with such products.”

Segram said that while stablecoins can “regulate themselves to some extent by being transparent with the public, I think Yellen is calling for more top-down regulations rather than let it be voluntary.”

This could mean having the reserve currency kept somewhere independent, or having claims be regularly audited, he added.

Segram added that the Fed, meanwhile, might have other concerns around stablecoins’ growth.

“If stablecoins become popular, the central bank loses its control,” Segram said, noting that there have been discussions of stablecoin-like “Central Bank Digital Currency” to be issued by the Federal Reserve.

A Central Bank Digital Currency would give the Fed more control “over how we manage demand, supply and all other means,” Segram said.

Routledge added that the Fed may also have worries about a “banking panic” situation if a lot of assets are flowing through a specific stablecoin.

“If for whatever reason that stablecoin has a shock to it — that can be a systemic event to the financial system,” he added. “That is what’s on the Fed’s radar.”

SEC Chair Gensler, meanwhile, signaled a regulation crackdown could be looming during his remarks earlier this month in Aspen.

Gensler said the use of stablecoins on crypto trading platforms “may facilitate those seeking to sidestep a host of public policy goals connected to our traditional banking and financial system: anti-money laundering, tax compliance, sanctions, and the like.”

“This affects our national security, too,” he added. Gensler said he looks forward to working with regulators and lawmakers on these matters.

Despite the risks, Segram sees cryptocurrencies as the future, which may be in part why regulators are raising alarm bells and why there is so much discussion over a potential central bank digital currency. Major U.S. companies including Amazon and Walmart have recently announced they are hiring cryptocurrency experts, and a growing number of firms have started accepting cryptos as a form of payment.

China’s central bank has already launched its digital Yuan, he added, saying that the U.S. most likely will at some point in if it does not want to lose its status as the “reserve currency of the world.”

“If a stablecoin is issued by a private authority, it is not 100% fail-proof,” he said. “In a democracy like ours, or other democracies where there’s some political stability and currency stability, a central bank digital currency might be the way to go.”

“I think of stablecoin sort of as a link between fiat currencies and cryptocurrencies, this takes that to another level,” he said.

Copyright © 2021, ABC Audio. All rights reserved.

(WASHINGTON) — The $1.1 trillion infrastructure bill passed by Congress last week will fund roads, bridges, rails and other components of the country’s infrastructure. The legislation is also addressing racial inequity.

President Joe Biden’s infrastructure plan aims to “reconnect neighborhoods cut off by historic investments” and “redress historic inequity.” Part of his plan includes awarding government contracts to minority-owned businesses, including real estate development companies that will do the work in conjunction with climate projects.

Why is racial injustice being addressed in the plan? The real estate development community is almost exclusively white. That lack of diversity, Black developers who spoke with ABC News said, translates into less affordable housing in Black communities, low rates of homeownership and a scarcity of retail and other businesses within those communities.

According to a 2019 report from Urban Land Institute — a nonprofit organization for real estate and land use experts — only 5% of its U.S. members are African American, 4.5% are Asian and 82% are white.

One of the major problems with diversifying real estate, Black developers say, is that they often face hurdles in acquiring funds, and ultimately in expanding their businesses.

Many are working to eliminate those barriers. Last year’s racial reckoning protests invigorated the real estate development community to create and leverage more initiatives and programs to help not only the Black real estate development business, but to further Black economic power.

D.C. becoming model of Black real estate development

Last summer, Washington, D.C., Mayor Muriel Bowser’s office established several initiatives to provide access to funding for minority developers.

“We are committed to making our city’s prosperity more inclusive, but that won’t happen by chance – it will happen because as a government and as individuals, we are intentional about how we invest and who we make opportunities available to,” said Bowser shortly after its launch.

One of those initiatives is Capital Impact Partners’ $20 million Diversity in Development DMV Loan Fund (DiD-DMV) and coinciding grant program.

“Our goal is to really take a holistic approach to provide opportunity — specifically in communities of color,” Ellis Carr, president and CEO of Capital Impact Partners and CEO of CDC Small Business Finance told ABC News.

“As we thought about the opportunity to support the D.C. area’s real estate development community, we looked at where the hurdles were, particularly those that were faced by developers of color. We heard a number of things, but primarily it was really boiled down to the lack of access to capital in both debt and equity for developers to really be able to take the leap and expand their businesses and wage,” Carr said.

Through the fund, developers, both nonprofit and for-profit, will have access to lower-cost, flexible pre-development and acquisition loans, unlocking crucial early-stage financing that is often denied to developers of color.

The first two financed projects are set to be built in Washington, D.C.’s Ward 7 and Ward 8, areas with a large African American population.

Thomas Houston and Talayah Jackson both received nearly $1 million in funding for their nonprofit community development corporation, Medici Road.

“U.S. housing is a product change,” Jackson told ABC News. “There is a connection between public health, education and housing … it’s all a systemic problem. It’s not just about solving one answer for someone, it’s … tackling multiple things.”

With the funds, Medici Road plans to develop a 17,000-square-foot building in a vacant lot in D.C.’s Deanwood neighborhood with affordable housing, retail and office space to create essential services in the community.

“We’re creating systemic change for generations,” Jackson said. “I think it’s just due time that taxpayers, as residents, have access to the things that really should already be in place. This community should be flourishing, it should be thriving.”

The new condominium community will create a mixed-income development to provides access to healthy food and health and wellness education, Jackson said.

Currently, the seventh ward has higher crime rates, low homeownership rates and few grocery stores. But Houston says that’s the reasoning behind the decision to develop in the area.

“We have a car to drive to wherever grocery store we wanted to. But what if there is an emergency for say food, formula, and we didn’t have any access at all? When you start looking at this from the professional side of the road, and we start looking at public health outcomes access all the stuff is linked, and none of it exists in our neighborhood. And so that’s where the idea came,” Houston said.

The grocery store is expected to be a franchise owned and staffed by residents of the community.

Steps away from the Deanwood neighborhood project, another developer, Mustafa Durrani of Durrani Development Corporation, secured a $2.5 million acquisition loan and another $900,000 predevelopment loan. Durrani plans to transform a vacant area into a new affordable housing community in the Randle Heights neighborhood of D.C.’s Ward 8.

“There’s an idea that affordable homeownership and affordable rentals are like public housing. And so we want to be able to create something that looks like market rate but it’s still affordable,” Durrani said.

Both projects are in early stages of development.
 

Copyright © 2021, ABC Audio. All rights reserved.

(NEW YORK) — Southwest Airlines pilots are preparing to picket as front-line employees at the airline complain of mismanagement, low staffing, scheduling chaos and a lack of food and hotels for pilots and flight attendants.

Unions representing Southwest’s front-line employees say the airline is severely understaffed, but continues to pack its flight schedule as air travel rebounds, forcing pilots and flight attendants to regularly work the maximum number of hours permitted by federal law. Staffing and weather issues have forced Southwest to cancel thousands of flights this summer.

On Thursday, by late afternoon, Southwest had canceled 170 flights and delayed 852 others, the most of any U.S. airline. At the same time, United had 31 cancellations, while Delta had four.

“We are united on this issue. Our flight attendants are weary, exhausted, and they can take no more,” Lyn Montgomery, Southwest flight attendant and union president, told ABC News. “We’re asking that additional flights not be added to the schedule until the company can handle the flight schedules that we currently have. We all want to get back to the pre-pandemic days, but we have to be able to handle things the way they are right now, the way things are still with the pandemic.”

Crews say they routinely arrive in destination cities only to learn they have no hotel or food availability and cannot reach the company for help.

“We’re being asked to work longer hours, more shifts and extended duty days. We get to the curb and at the end of the day, and we have no idea what hotel we’re supposed to go to,” Montgomery said. “We have to wait for hours to call crew scheduling. There’s no food in the hotel, so we’re unable to get food. We’re not able to get food with the long lines at the airport. So food is the major issue. And we’re also being told that if we call in sick, we have to go see a company doctor to verify the illness.”

In July, Southwest offered its flight attendants double time to pick up extra shifts. The company is now offering its employees referral bonuses to try and fill vacancies.

“The safety of our Employees and Customers comes first, at all times, and that continues to be the priority in everything that we do, Sonya Lacore, Southwest vice president of inflight operations, told ABC News in a statement. “We are aware of the concerns the TWU 556 raised in their letter, and there is much work already underway to address many of the issues this summer.”

Casey Murray, a Southwest captain and pilot’s union president, said issues raised with the company have largely been ignored.

“Management’s refusal to even attempt any of our solutions, or have any real discussion has led us to this point, we must accept that our efforts to improve efficiency and make Southwest Airlines more competitive have fallen on deaf ears, time and time again, because the company has made it clear that they are comfortable with the operation as managed,” Murray said in a video to Southwest pilots Thursday morning.

Southwest Vice President Bob Waltz acknowledged some of the airlines’ challenges, telling ABC News in a statement: “The airline and travel industry have seen a multitude of operational challenges as we navigate the effects of the pandemic. We have teams across the airline working diligently to adapt to the current environment and support our employees during this peak travel season, including efforts focused on providing support to our pilots.”

“We routinely work with the Southwest Airlines Pilots Association on a variety of matters that affect our pilots, but we also have a responsibility to consider a number of factors before implementation of suggestions. We remain committed to listening to feedback and proactively working to address issues as we navigate the months ahead,” Waltz explained.

Southwest is not the only airline facing staffing challenges. American Airlines has had to cancel thousands of flights this summer due pilot and flight attendant shortages.

While airlines received billions of dollars in government aid to keep employees on the payroll, many front-line workers took early retirement or severance packages at the height of the pandemic, leaving airlines desperate to fill openings as air travel rebounded.

Southwest pilots say they will picket during the busy Thanksgiving and Christmas rush if their demands are ignored.

Copyright © 2021, ABC Audio. All rights reserved.

(NEW YORK) — American Airlines will not serve alcohol in coach until at least 2022, aligning with the expiration of the Transportation Security Administration’s federal mask mandate for airports and planes.

American and Southwest airlines suspended alcohol sales early in the pandemic and said they wouldn’t restart serving booze until September, when the mask mandate originally expired. That date has now been extended to Jan. 18.

Southwest told ABC News it hasn’t decided whether it, too, will extend its alcohol suspension beyond September.

United Airlines has stopped selling hard liquor but is serving beer, wine and hard seltzer.

American’s announcement comes as the Federal Aviation Administration has reported a surge in unruly passengers.

The FAA announced Thursday that it has proposed $1 million in fines for unruly passengers in 2021. The agency said it’s received more than 3,889 reports of unruly behavior this year and that 71% of the reported incidents involved passengers who refused to comply with the federal mask mandate.

Many of the incidents aboard U.S. aircraft also have been fueled by alcohol, including one on a Frontier Airlines flight in which a man was duct-taped to his seat after allegedly touching the breasts of two flight attendants and punching a third. Frontier said the man had requested multiple drinks, spilled on himself, and then walked around the aircraft without wearing a shirt.

The FAA is also asking airport bars and restaurants not to serve alcohol to-go.

American will continue to serve alcohol in first class.
 

Copyright © 2021, ABC Audio. All rights reserved.

(WASHINGTON) — The Federal Trade Commission is not backing down in its antitrust legal battle against Facebook.

The agency filed an amended complaint against the social media giant on Thursday — voting 3-2 along party lines to proceed — after a federal judge in June dismissed an initial antitrust complaint brought by the FTC.

The new complaint alleges that after Facebook failed to develop innovative mobile features for its network, the company instead opted for an “illegal buy-or-bury scheme” to maintain dominance, according to a statement from the FTC. The agency also accuses the company of “unlawfully” acquiring innovative competitors after its own failed efforts to create popular mobile features.

“Facebook lacked the business acumen and technical talent to survive the transition to mobile. After failing to compete with new innovators, Facebook illegally bought or buried them when their popularity became an existential threat,” Holly Vedova, the FTC’s Bureau of Competition acting director, said in a statement Thursday. “This conduct is no less anticompetitive than if Facebook had bribed emerging app competitors not to compete.”

“The antitrust laws were enacted to prevent precisely this type of illegal activity by monopolists,” Vedova added. “Facebook’s actions have suppressed innovation and product quality improvements. And they have degraded the social network experience, subjecting users to lower levels of privacy and data protections and more intrusive ads.”

Vedova said the FTC’s latest legal move seeks to “put an end to this illegal activity and restore competition for the benefit of Americans and honest businesses alike.”

Many of the arguments are along similar lines of the initial lawsuit, though the FTC said the new complaint includes additional data and evidence.

The new complaint in part focuses on the “transition period” when the emergence of smartphones and mobile internet use seemingly threatened Facebook’s dominance.

The agency alleges in a statement that after Facebook suffered “significant failures during this critical transition period,” the company opted instead to engage in anticompetitive behavior and buy up mobile innovators, including former rivals Instagram and WhatsApp.

The agency also takes aim at Facebook’s treatment of software developers, saying that after starting its Facebook Platform as an open space for third-party software developers, it abruptly reversed course and required developers to agree to conditions that prevented successful apps from emerging as competitors.

In response to ABC News’ request for comment, Facebook referred to a company Twitter post that said: “We are reviewing the FTC’s amended complaint and will have more to say soon.”

In response to the initial complaint, the company has previously slammed the allegations as “revisionist history,” noting that the agency had cleared the acquisitions of Instagram and WhatsApp. The company has also argued that Instagram and WhatsApp have become what they are today due because Facebook further funded and developed them.

When he dismissed the initial antitrust complaint, District Judge James Boasberg stated that the agency’s complaint “is legally insufficient and must therefore be dismissed.” Boasberg said the FTC failed to provide enough facts to prove Facebook’s alleged monopolistic behavior.

Lina Khan, a vocal critic of Big Tech’s dominance, took the helm at the FTC earlier this year, leading many to speculate a crackdown on the industry could be looming. Facebook has petitioned for Khan to be recused from the antitrust investigation, but the agency on Thursday dismissed the petition. 
 

Copyright © 2021, ABC Audio. All rights reserved.

(NEW YORK) — Travel looks different in 2021 with changes at hotels like charges for amenities and services.

Some hotels have stripped-down room rates to the bare minimum, tacking on extras like access to the gym or pool for a fee.

MCR Hotels, one of the largest hotel owners in the country with 110 properties in 33 states, said it will experiment with this new feature at New York’s High Line Hotel and the retro hit TWA Hotel located at JFK airport.

The hotel will charge $25 to use the pool on weekends or a day pass at the gym. For guests who want an early check in, that will come with a $20 fee and breakfast will run an additional $10 to $25.

Tyler Morse, CEO of MCR hotels told Good Morning America that this new model tailors the appropriate cost of a stay to fit various guests and their needs.

“There’s business travelers, leisure travelers. Some people want to go to the pool. Some people want to go to the gym. Some people don’t want to do either,” he said. “But by having all of the products together for one price, it forces some people to pay for products that they don’t want or never going to consume.”

These new changes could also save some travelers money if they aren’t planning to use any amenities.

“By going to our cart model, it unbundles the product, it allows us to charge a lower rate for those who just want a sleeping room,” Morse explained. “You can buy the products that you want.”

The hotel and travel industry has been hit hard by the pandemic and now faces labor shortages. Those in the industry are looking for ways to experiment with new options to recover losses and win back business.

“There is going to be quite a long period before we’re back to pre-pandemic levels,” Melanie Lieberman, senior editor of The Points Guy told GMA. She added: “it’s not surprising to see this type of model roll out right now as hotels are looking for ways to ways to save money and generate new revenue.”

Other hotel giants like Marriott and Hilton have yet to jump on the a la carte fee model.

“I think the hotel industry is going to take a cautious approach to doing this — but certainly the more brands, the more major players and the hotel space that start to participate in this type of pricing model, the faster it’s going to take off,” Lieberman said.

Before booking your next stay, she suggested to think about what you actually need for the type of trip you want.

“It certainly goes back to this concept of, if you think you want the whole buffet, you shouldn’t be ordering a la carte,” Lieberman said. “There’s a ton of choice out there for travelers right now. And they’re really going to have to choose at their discretion what kind of experience they want.”

Copyright © 2021, ABC Audio. All rights reserved.

(NEW YORK) — Labor shortages across the country are fueling a competition among long-term care facilities to retain and hire staff as they grapple with the delta variant.

With U.S. job openings hitting a record high of 9.2 million, nursing homes and other long-term care facilities are losing staff to other industries, or to other nursing facilities that can offer higher wages and better benefits, long-term care advocates and health care associations tell ABC News.

Staff shortages among nursing homes are not new. But advocates say the combination of the coronavirus pandemic, a general labor shortage, and a looming vaccine mandate for many long-term care facilities is making it even more difficult to keep staff.

Many facilities are raising their pay as a result — which in turn has increased competition.

“You have places offering a starting rate of $19 or $20 with huge sign-up bonuses of thousands of dollars,” said Paul Liistro, CEO of Manchester Manor and Vernon Manor nursing homes in Connecticut. In contrast, Liistro said, his facilities are on a three-year track to provide certified nursing assistants a $20 hourly wage.

In May 2020, the median annual wage for long-term care nursing assistants — most of whom work full-time — was $30,120, according to the U.S. Bureau of Labor Statistics.

Liistro told ABC News that for a brief period of time at the start of the pandemic, some nursing homes were able to raise staff salaries after receiving federal and state coronavirus relief funds. But Liistro said with that aid no longer available, his facilities can’t keep up with the competitive wages being offered in other places.

And Liistro said he expects to see some resignations due to the upcoming mandate that will require his staffers to either get vaccinated or be tested regularly.

On Wednesday, the Biden administration announced that it will require nursing home staffs be vaccinated against COVID-19 as a condition for those facilities to continue receiving federal Medicare and Medicaid funding. The latest move by the White House is already receiving pushback from advocates who say the decision will only lead to more staff shortages.

“Focusing only on nursing homes will cause vaccine-hesitant workers to flee to other health care providers and leave many centers without adequate staff to care for residents,” said Mark Parkinson, president and CEO of the American Health Care Association and National Center for Assisted Living, which represents more than 14,000 nursing homes. “It will make an already difficult workforce shortage even worse. The net effect of this action will be the opposite of its intent, and it will affect the ability to provide quality care to our residents.”

Nationwide vaccination rates among nursing home staff members are lagging far behind residents. According to the American Association of Retired Persons, 78% of long-term care facility residents are fully vaccinated — while staff vaccinations are only at 56.7%

Liistro told ABC News that his staff continues to express concerns about the safety and efficacy of the vaccine, despite nursing home cases and deaths plummeting after they were prioritized for the vaccine.

“We have about 125 unvaccinated people,” Liistro said of his staff. “My guess is that 80% are going to get vaccinated, 10% will get exemptions and the other 10% will leave.”

“But,” he said, “I’m confident we will find people who want to work in a safe environment with employers who are doing the right thing.”

At John Knox Village, an independent 430-bed nursing facility located in a Kansas City suburb, managers say they’re seeing competition from beyond the health care industry. On top of losing nurses and certified nursing assistants to other nursing homes and hospitals offering higher salaries, the facility recently lost its long-time housekeeper to a warehouse job that offered an additional $3 an hour.

John Knox Village spokesperson Emily Banyas said that last year, the facility raised wages to between $11-$12 an hour for certified nursing assistants in order to remain competitive with stores like Target and Walmart. But recently the big-box stores raised their wages yet again, and are offering added benefits like college tuition and moving expenses.

“It’s turning into a borderline crisis for senior living communities,” Banyas said.

Most of the 310 Florida nursing homes and 23 assisted living facilities questioned last month by the Florida Health Care Association reported they are facing staff challenges.

As a result, said FHCA spokesperson Kristen Knapp, many Florida facilities are having to pay temporary staffing agencies to fill positions. That, in turn, has cost facilities in the state an additional $22.7 million, according to the Agency for Health Care Administration.

Knapp also said that some facilities have been unable to take on new patients because they lack the necessary staff.

In Pennsylvania, the long-term care workforce crisis has “spiraled out of control,” said Zach Shamberg, president and CEO of the Pennsylvania Health Care Association.

Like in Florida, Pennsylvania providers have relied heavily on agency staff or contractors to fill staffing needs, Shamberg said — but now, even those agencies are facing their own workforce shortage.

“Other sectors, including hospitals, have the financial means to offer extravagant bonuses and rapidly maximize wages,” Shamberg said. “Long-term care providers simply cannot keep pace, which leads to workers leaving for other jobs in health care and other industries.”

Dr. David Gifford, chief medical officer for the AHCA/NCAL, said a long-term solution is desperately needed.

“Nursing homes are in constant competition for staff,” said Gifford. “Many providers struggle to recruit and retain caregivers who can often find less demanding jobs in other settings, such as hospitals and industries that can offer better pay.”

“This has been persistent, and the most pressing challenge confronting long-term care, which the COVID-19 pandemic has only exacerbated,” Gifford said. “The ultimate impact is on our nation’s seniors, who may face limited access to long-term care.”

Copyright © 2021, ABC Audio. All rights reserved.

(NEW YORK) –Attention, beauty enthusiasts! Ulta Beauty and Target have joined forces and this is not a drill.

The new Ulta Beauty shop-in-shop concept has officially started to roll out at over 50 locations.

Intrigued shoppers can also get a look at the full product assortment of offerings on Target’s website, which features over 50 prestige brands.

Standout brands include Clinique skin care, Urban Decay makeup, Tracee Ellis Ross’ Pattern hair care brand and many more.

Following the initial openings, this shop-in-a-shop format is slated to open in hundreds of other locations as well as online for years to come.

The Ulta Beauty specialty shops are located near existing Target beauty sections and feature specialized displays, season-specific buys and discovery zones for on-trend products.

There will also be trained staff available to help those looking for expert recommendations.

“Ulta Beauty at Target is unmatched in the industry, bringing guests the opportunity to discover new prestige brands while they shop Target’s incredible beauty assortment,” Christina Hennington, Target’s executive vice president and chief growth officer, said in a statement.

She continued, “This unique partnership is another way we continue to elevate the guest experience across our multi-category business to drive traffic and preference as we meet guests’ needs in innovative ways.

“With two powerhouse retailers, our collective brand love, loyalty and omnichannel expertise will inspire guests and raise the bar for the beauty shopping experience,” Hennington added.

Beauty lovers will also get to benefit from two rewards programs — Target Circle and Ultamate Rewards — with this new concept.

Ulta Beauty joins Target’s roster of partnerships with other big-name brands, such as Disney, CVS, Starbucks and more.

“As the retail and beauty industries continue to evolve, we take pride in being leaders that continually redefine and elevate guest experiences,” said Ulta Beauty Chief Operating Officer Kecia Steelman.

She continued, “Ulta Beauty at Target reflects our commitment to drive the industry forward and keep our guests meaningfully engaged. Our dynamic teams have worked together to create a disruptive, exciting way to discover prestige beauty with a thoughtfully curated assortment and knowledgeable, approachable experts to serve as beauty gurus.”

Ulta Beauty at Target has opened at locations throughout California, Florida, Georgia, New York, Texas and many more coming soon.

Walt Disney Co. is the parent company of ABC News and “Good Morning America.”

Copyright © 2021, ABC Audio. All rights reserved.

(NEW YORK) — T-Mobile confirmed that the personal information of millions of current and prospective customers was compromised in a recent “highly sophisticated cyberattack.”

Some of the data accessed by hackers includes first and last names, dates of birth, social security numbers, and drivers license or ID information. The company said no phone numbers, account numbers, passwords or financial information, including credit or debit card details, were compromised.

The cell phone carrier said the access point bad actors used to illegally gain entry to its servers was located and closed, but the company’s investigation into the breach is ongoing.

“Our preliminary analysis is that approximately 7.8 million current T-Mobile postpaid customer accounts’ information appears to be contained in the stolen files, as well as just over 40 million records of former or prospective customers who had previously applied for credit with T-Mobile,” the company said.

Moreover, the company confirmed that some 850,000 active T-Mobile prepaid customer names, phone numbers and account PINs were also exposed. No customers of Metro by T-Mobile, formerly Sprint prepaid, or Boost had their names or PINs exposed.

T-Mobile said it’s offering two years of free identity protection services with McAfee’s ID Theft Protection Service to customers who are affected, and is recommending all T-Mobile postpaid customers proactively change their account PINs.

The company also said it’s also launching a web page on Wednesday with additional information to help customers protect themselves.

“We take our customers’ protection very seriously and we will continue to work around the clock on this forensic investigation to ensure we are taking care of our customers in light of this malicious attack,” the company said. “While our investigation is ongoing, we wanted to share these initial findings even as we may learn additional facts through our investigation that cause the details above to change or evolve.”

The breach at T-Mobile comes in the wake of multiple high-profile cybersecurity attacks this year that have targeted meat processors, oil pipeline operators and more. In May, President Joe Biden signed an executive order aimed at modernizing the federal government’s response to cyberattacks.

Copyright © 2021, ABC Audio. All rights reserved.