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To:Brew Readers
California lawmakers are leading the country on AI legislation.

Hey there, HR pros. Due to the federal government shutdown that started on Oct. 1, the Bureau of Labor Statistics won’t release the jobs report that was scheduled for this Friday—for the first time since 2013. HR Brew has not shut down, so we’ll be doing our best to fill in the gaps in the absence of government data. We’ll also be mentally transporting ourselves back to 2013, when the government may have shut down, but Vine was still a thing and the Harlem Shake was the viral dance of the day. Join us!

In today’s edition:

Landmark legislation

The Life of a Swiftie

🩺 Gaining ground

—Adam DeRose, Kristen Parisi, Maia Anderson

COMPLIANCE

Flag of California over digital code

Mr-Tigga/Getty Images

California Gov. Gavin Newsom made headlines Monday, signing landmark legislation into law to govern the development of frontier AI technology and mitigate risk. But the Golden State this week also began enforcing new AI regulations related to automated decision making systems (ADS) for all employers in the state.

Newsom signed the Frontier Artificial Intelligence Act, a first-of-its-kind law that oversees the development of major AI technology systems, requiring companies like OpenAI and Anthropic to disclose their safety measures and report any risks associated with their tech.

The measure also strengthens whistleblower protections for workers at these companies against retaliation for flagging issues of potential or apparent risk.

“California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive. This legislation strikes that balance,” the governor said in a statement about the new law.

For more on the AI regulations impacting California employers, keep reading here.—AD

Presented By Hibob

HR STRATEGY

Taylor Swift in a fringe dress performing on the Eras Tour

Hector Vivas/Getty Images

More than one-third of US workers (36%) identify as a Swiftie—and are likely to be distracted when Taylor Swift releases her 12th studio album, according to new data.

Swifties will wait in a merch line for three hours, meticulously place crystal freckles on their faces, and clear out a Michael’s to craft concert-ready bracelets, so it may not be surprising that 6% plan to take off for the October 3 release of The Life of a Show Girl, according to a new survey from BambooHR. Employees who do work on release day might be distracted by a lively group chat, as 10% of fans report their company has a dedicated Swiftie channel on Slack or Teams.

The latest Swift release isn’t the first cultural phenomenon to distract employees from work.

For more on what to expect from salaried Swifties on album-release day, keep reading here.—KP

TOTAL REWARDS

A pharmacy technician grabs a bottle of medicine off a shelf at a pharmacy

George Frey/Getty Images

Watch out Big 3—alternative pharmacy benefit managers (PBMs) are coming for you.

Amid rising drug costs, lawsuits, and federal scrutiny, employers are increasingly looking for new ways to manage their pharmacy benefits outside the Big 3 PBMs: CVS’s Caremark, Cigna’s Express Scripts, and UnitedHealth’s Optum Rx, which collectively control about 80% of the pharmacy market.

A September report from nonprofit trade group the National Alliance of Healthcare Purchaser Coalitions, found 61% of the 324 employers surveyed have moved away from using the three major PBMs in the past year or are considering moving away from them within the next three years.

For more on why employers are moving away from the Big 3, keep reading on Healthcare Brew.—MA

Together With Included Health

WORK PERKS

A desktop computer plugged into a green couch.

Francis Scialabba

Today’s top HR reads.

Stat: Only 18% of employers with unionized employees said they would be “very prepared” if those employees were to strike or hold walkouts. (Littler)

Quote: “When I met with my entry factory workers, they were saying [they] had to have three jobs.”—Ford CEO Jim Farley on how a strike by United Auto Workers members in 2023 made him realize the automaker’s entry-level wages were no longer sufficient (Yahoo)

Read: Heavy investments in AI have caused tech stocks to soar this year, but if these efforts don’t pay off, it could have negative ripple effects for the entire US economy—including your 401(k). (the Washington Post)

Returns on human resources: Stop getting tripped up explaining HR’s value. HiBob’s Defining ROI for HR Initiatives Workbook can help show leadership the real cost of holding HR back. Grab your workbook now.*

*A message from our sponsor.

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