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The Cracker Barrel backlash has nothing to do with DEI.
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Labor Day is almost here! For those based near New England, this weekend could be a good opportunity to visit the Maine homestead of Frances Perkins, the first female labor secretary and presidential cabinet member, who advocated for 40-hour workweeks, a minimum wage, and the creation of Social Security, and had her property dedicated as a national monument by former President Biden last year.

In today’s edition:

Branding backlash

Legislative lowdown

🧊 Hiring on ice

—Kristen Parisi, Courtney Vinopal, Courtney Vien

DEI

Cracker Barrel's old and new logo.

Cracker Barrel

Cracker Barrel, the largely Southern food chain with more than 650 locations and 70,000 employees, caused an uproar last week when it changed its logo. While many consumers were quick to blame DEI, the backlash may reflect the polarization of the country, according to one expert.

How it started. You may be familiar with the old Cracker Barrel logo, which featured an older gentleman leaning against a barrel. Enter, new branding, released on Aug. 18, in conjunction with the company’s “All the More” campaign with country star Jordan Davis. No barrel. No man. Just “Cracker Barrel” in a bland font against the same gold background.

Unfortunately, consumers were not happy, to say the least. People on the political right, including Donald Trump Jr., Ben Shapiro, and comedian Larry the Cable Guy, claimed the new logo was “woke” and a result of DEI. Others said it was boring and disconnected from Cracker Barrel’s Southern roots. The online commentary soon led to real-world consequences: Cracker Barrel’s stock quickly plunged, losing almost $100 million in market value in less than a week, CBS News reported.

Why blame DEI? Lily Zheng, an organizational fairness consultant, told HR Brew that the Cracker Barrel situation isn’t really about DEI, but rather another example of the “us against them” mentality dividing the nation. “Every single thing that happens, be it small or large in popular culture, is now being jumped upon as a tool of political polarization to pick sides,” they said.

For more on how DEI leaders can navigate this polarized environment, keep reading here.—KP

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COMPLIANCE

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Francis Scialabba

A policy that was embraced by both the Democratic and Republican candidates during the 2024 presidential campaign made it into the final version of the recently enacted tax and budget bill, and will affect employers in the service industry starting next year.

The provision in President Donald Trump’s “One Big Beautiful Bill,” called “No Tax on Tips,” will allow eligible tipped workers to deduct up to $25,000 from their tipped income each tax year from 2025 to 2028.

The Internal Revenue Service (IRS) recently published a draft W-2 form taking this policy change into account, and said it would publish a list of occupations that may be eligible to take advantage of the tax break in early October.

For more on what “No Tax on Tips” means for employers, keep reading here.—CV

RECRUITMENT & RETENTION

Hiring declines

Takasuu/Getty Images

Tally another one up in the “2025 is a rough year for jobs” column.

Fewer CHROs plan to increase hiring than did so a year ago, a survey by the Conference Board finds, and more anticipate that their companies will pull back on hiring.

Twice a year, the Conference Board surveys US CHROs at organizations like Fortune 500 companies, healthcare employers, and midsized companies. This quarter, 36% of CHROs said they plan on increasing hiring within the next six months, roughly the same percentage as Q4 of 2024 (37%) but down from 41% in Q2 of 2024. Similarly, 20% of CHROs said they would decrease hiring over the next six months, around the same percentage as Q4 of 2024 (19%), but up from 11% this time last year.

It’s yet another data point suggesting that the jobs picture is weakening.

For more on the state of the job market, keep reading on CFO Brew.—CV

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WORK PERKS

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Francis Scialabba

Today’s top HR reads.

Stat: About half (51%) of global professionals feel learning AI is a job. (LinkedIn News)

Quote: “Don’t take anything you see in those videos too seriously, because there are many people who lie for the views…I’ve been in mining for a year now, and I’ve never used a pool.”—Thomas Nicoud, a 29-year-old Frenchman, who began working in Australian mines after seeing dishonest influencer videos promoting that line of work (Bloomberg)

Read: Microsoft is investigating and weighing disciplinary measures against employees who occupied company President Brad Smith’s office on Tuesday, protesting the tech giant selling its software to the Israeli military and alleging it’s been used to target civilians in Gaza. (the Wall Street Journal)

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EVENTS

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Morning Brew Inc.

Why Automation Matters: Ensuring Compliance in the EOR Framework isn’t just another webinar. It’s your playbook for risk-proof global growth. On Sept. 3, uncover the hidden costs of compliance failures, learn how automation builds a proactive shield, and gain practical strategies to safeguard teams across borders. Register now.

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