Human Times

North American Edition

13th July 2026

THE HOT STORY

Employers rethink marijuana screening

Rising marijuana positivity rates are prompting U.S. employers to reconsider whether pre-employment drug screening remains useful. Quest Diagnostics found that 4.4% of urine tests were positive in 2025, up from 3.9% in 2021, while 15% of hair tests detected cannabis and random hair screenings reached 21%. Outside safety-sensitive industries, many companies increasingly treat off-duty use like alcohol consumption and fear strict testing will reduce applicant numbers. Employment lawyer Todd Logsdon said some employers warn: “If I test for that, I’m not gonna have any applicants.” Around half of surveyed employers excluded cannabis from pre-hire testing, while several major companies have relaxed their policies. Differing state protections and possible federal reclassification create further uncertainty. Transport and construction employers are expected to retain testing, but other businesses may increasingly focus on workplace impairment. Meanwhile, cocaine, amphetamine and methamphetamine positivity increased, although fentanyl detections fell by half.

The Wall Street Journal

LEGAL

UAW president faces DOJ investigation

The Department of Justice (DOJ) is investigating allegations against United Auto Workers (UAW) President Shawn Fain, who is accused of improperly benefiting his fiancée and retaliating against senior union member Rich Boyer. Internal documents reveal that the DOJ has initiated a grand jury investigation based on findings from the union's monitor, Neil Barofsky. Fain has denied the allegations, labeling them as "bogus," and is campaigning for re-election later this year. The monitor's report indicated that Fain retaliated against Boyer but deferred disciplinary action pending further review. Fain claims Boyer provided false information to the monitor and suggests that the investigation is politically motivated due to past disagreements over the union's stance on Gaza. The UAW has been under federal oversight since a 2020 corruption scandal involving embezzlement by union officials.

U.S. News

Press groups condemn NYT reporter subpoenas

Press freedom groups and Democratic senators criticised federal subpoenas ordering four New York Times journalists to testify about reporting on security concerns involving President Donald Trump’s new Air Force One. The Justice Department said reporters were not targets and that it was investigating classified leaks. National Press Club President Mark Schoeff Jr. urged officials to withdraw the subpoenas, arguing that “a free and independent press serves the people, not the government.” The Times called the action an attempt to intimidate journalists and conceal government operations.

Politico

WORKFORCE

Volkswagen weighs deeper workforce cuts

Volkswagen could eliminate about 50,000 additional jobs worldwide as it seeks to close a 20% cost disadvantage against comparable companies. Chief executive Oliver Blume told staff that the estimate represents a “theoretical deduction” rather than a confirmed target, with the group still assessing what reductions are necessary and feasible across its brands, businesses and regions. The potential cuts would come on top of 50,000 positions already agreed across Volkswagen, including at Porsche and Audi. Blume said further savings are required to improve competitiveness, signalling that the German carmaker’s restructuring could become considerably larger as management reviews operations throughout the global group.

Reuters

New Jersey's pension crisis deepens

New Jersey's public schools are grappling with a significant fiscal crisis, as pension plans remain severely underfunded despite billions in contributions. As of 2023, the Public Employee Retirement System (PERS) and Teachers' Pension and Annuity Fund (TPAF) reported funding ratios of only 48.4% and 34.7%, respectively. This underfunding is squeezing school budgets, with pension contributions rising from over 2% in 2015 to more than 12% by 2023. Gregory Kearney, a research associate at the Hoover Institution, noted that "without serious intervention, pension costs will continue to consume education resources."

NJ.com

PRODUCTIVITY

Warsh launches Fed policy review

Federal Reserve Chair Kevin Warsh has appointed members to five independent task forces that will examine key issues affecting U.S. monetary policy as part of his broader effort to reshape the central bank. The groups include academics, former central bankers, and business leaders such as former Walmart chief executive Doug McMillon, Andreessen Horowitz cofounder Marc Andreessen, and Microsoft Xbox CEO Asha Sharma, and are expected to deliver recommendations to the Federal Open Market Committee by the end of the year. The task forces will study topics including productivity, inflation, and the use of economic data in policymaking, with their findings potentially influencing the Fed's future approach to interest rates. Warsh has suggested that sustained productivity gains driven by artificial intelligence could support lower interest rates, although some Fed officials have warned that AI could also fuel inflation if demand outpaces supply.

AI adoption depends on organisational change

The biggest obstacle to successful AI adoption is organisational change rather than the technology itself, according to Eric Bradlow, Wharton professor and Vice Dean of AI and Analytics. He argues businesses must redesign workflows and determine how employees and AI can work together effectively, rather than simply automating existing processes. Bradlow believes AI is more likely to drive revenue growth than cost savings by enabling new business models and higher-value work. He also says demand for specialist expertise will increase, with skilled professionals needed to train, validate and oversee AI systems. He concludes that investment in workforce training, reskilling and strong governance will be essential to realise AI's full business potential.

Fortune

Starbucks uses AI to develop in-house software

Starbucks is developing AI-assisted software to replace some applications it currently buys from technology vendors, including Microsoft and IBM, as part of a broader effort to cut costs and reduce its reliance on third-party software. The coffee chain is building in-house alternatives to Microsoft's inventory management system and IBM's maintenance software, with some tools expected to launch by the end of 2027, subject to testing. The initiative forms part of Starbucks' wider turnaround strategy, which includes a target to reduce costs by $2bn, with the company spending around $400m annually on software alone. Starbucks is also reviewing all of its technology contracts and has already reduced its enterprise technology budget by around $30m this fiscal year, including $10m in software savings.

Los Angeles Times

TECHNOLOGY

OpenAI leadership reshuffle continues

OpenAI's second-ranking executive, Fidji Simo, has announced she will step down from her full-time role after an extended medical leave, citing a worsening neuroimmune condition, and will remain with the company as a part-time advisor. Her departure creates another leadership vacancy as OpenAI prepares for a potential IPO and intensifies competition with rival Anthropic in the enterprise AI market. Simo, who joined OpenAI last year to oversee the company's product and business operations, led initiatives including the introduction of advertising in ChatGPT, new health-related features, and the development of AI coding tools for businesses. Her responsibilities will now be divided among President Greg Brockman, finance chief Sarah Friar, and chief strategy officer Jason Kwon, as chief executive Sam Altman faces the task of reshaping the leadership team during a period of heightened competitive and strategic pressure.

CNBC

Wall Street Journal

HIRING

Bending Spoons' hiring model draws HR attention

Technology company Bending Spoons has developed one of the world's most selective recruitment processes, hiring just 286 people from 800,000 applications last year. Candidates progress through multiple stages of aptitude testing, structured interviews and reference checks, with hiring decisions supported by algorithms and performance data. The company continuously refines its recruitment process by comparing hiring predictions with employees' long-term performance. Chief executive Luca Ferrari says the approach is designed to identify high-potential talent early, using measurable indicators rather than relying on traditional interviews alone.

The Wall Street Journal

AI in hiring: Efficiency or liability?

AI is rapidly transforming hiring practices, but it also introduces significant legal risks for employers. A common misconception is that AI shields employers from discrimination claims; however, courts have clarified that employers remain liable for discriminatory outcomes produced by AI tools. In the case of Mobley v. Workday Inc., plaintiffs claimed that the AI hiring system unfairly rejected candidates based on race, age, and disability. The court ruled that AI vendors act as "agents" of employers under Title VII, meaning compliance cannot be outsourced. The EEOC's case against iTutorGroup Inc. further emphasized that algorithms applying discriminatory criteria violate the law. Additionally, AI raises privacy concerns, as monitoring software must be transparent to employees. Wilford H. Stone, an attorney at Lynch Dallas, advises that employers should use AI responsibly, conducting bias audits and ensuring human oversight to mitigate risks.

The Gazette Cedar Rapids Iowa

World Cup hiring boost falls short of expectations

The FIFA World Cup has yet to deliver the expected hiring boost for the US hospitality sector, with leisure and hospitality employment falling by 21,000 over the past two months. Higher accommodation costs, expensive match tickets, geopolitical tensions and weaker international travel have limited demand. Many businesses are meeting increased activity by offering overtime to existing staff rather than recruiting, while hotel revenues have risen mainly through higher room rates rather than increased occupancy.

Bloomberg

ECONOMY

Economic outlook shifts amid inflation

Inflation pressures, a divided Federal Reserve, and the energy shock from the Iran war are reshaping the economic landscape. The International Monetary Fund (IMF) has downgraded its global growth forecast to 3% for 2026, citing the conflict's impact. Despite a slowdown in home sales, U.S. home prices reached an all-time high of $440,600, exacerbating affordability issues for buyers. Jobless claims remain low, with a slight dip to 215,000, indicating a resilient job market. However, the Fed is divided on inflation's trajectory, with some officials suggesting rates may rise by year-end. The International Energy Agency predicts a decline in global oil demand for the first time since 2020, primarily due to disruptions caused by the war. "Trips to the grocery store or gas station are more painful than they were last year," reflecting the broader economic strain on American households.

Los Angeles Times

INTERNATIONAL

Australian regulator expands review of Big Four audit complaints

Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), has launched a review of audit conduct complaints across the Big Four accounting firms following allegations that KPMG Australia staff misused confidential client information to secure contracts. The review will examine internal and whistleblower complaints involving audit conduct and the handling of confidential information, while ASIC continues a separate investigation into the specific allegations against KPMG. The broader review comes as the Australian government considers tougher regulation of large accounting firms, including expanding ASIC's powers and potentially breaking up the Big Four following a series of industry scandals. ASIC said its authority over partnership-based audit firms remains limited under current law, while PwC and EY said they would cooperate with the review.

Reuters

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