How Companies Scrambled to Help Federal Workers

BY rachelhouterman | January 28, 2019

The atrium at the Barclays Center arena in Brooklyn is typically filled with a stream of excited basketball fans, but last week the scene was entirely different. The cavernous space was stacked with groceries (milk, fruit, and vegetables) and personal-care items (diapers, baby shampoo) for federal workers who have been living without paychecks because of the partial government shutdown.

More than 600 federal workers showed up at arena to take advantage of the emergency pop-up shop, organized by the Food Bank for New York City and BSE Global, the company behind Barclays Center and the Nets basketball team, who also handed out free game tickets.

While President Trump announced a deal with congressional leaders on Jan. 25 to temporarily reopen the government, workers are not completely out of the woods. The deal would reopen government departments for three weeks while Congress works on a border security package. But if a “fair deal” does not emerge by Feb. 15, Trump said, there could be another government shutdown, the Washington Post reported.

Employees of Frontier Airlines brought donated food items inside Orlando International Airport. The food drive was organized by airport workers (Photo by Paul Hennessy/NurPhoto/Sipa USA via AP)

Thousands of federal workers across the U.S. have been stretched to the limit, struggling to pay rent and put food on the table since the shutdown on Dec. 24. About 800,000 workers have been affected, more than half of them deemed essential staff and required to work without compensation.

Across the U.S., there has been an outpouring of support from businesses and nonprofit organizations to offer essential items, financial relief, and professional advice to federal workers caught in the bind. “We’re here to help our customers, whether they’re a government worker, a government contractor or simply an employee at the diner across from a shuttered federal office,” JPMorgan Chase CEO Jamie Dimon wrote in a note to the bank’s employees.

In Brooklyn, some workers came with kids in tow, and some left work to pick up necessities. “In my own household, myself and my husband are federal government workers, so that’s two paychecks not coming in,” said a federal correctional officer, who asked not to be named. “And we have small children at home that we have to care for, child-care expenses to pay while we still go to work and not get compensated. So it’s very stressful.”

Making matters worse, some cash-strapped workers haven’t been able to afford transportation to their no-pay jobs. As a remedy, the correctional officer said her managers offered to allow workers to sleep overnight in the facility. A spokesperson for Brooklyn’s Metropolitan Detention Center said that it was just one of several measures put in place to assist the workers. “One avenue is providing interested staff with sleeping accommodations in a secure and empty part of the institution,” the spokesperson said in an email. “At no time are staff sleeping in inmate occupied areas.”

Oblio’s restaurant in Denver has been offering free pizza and wine to unpaid federal workers since the government shutdown began (Theo Stroomer/The New York Times/Redux)

Thoughts of having a Brooklyn pop-up shop for federal workers first began when the shutdown started, said Margarette Purvis, president and CEO of the Food Bank for NYC. But it quickly became a commitment when they heard that February’s food stamps would be distributed in January instead, leaving families without support for next month.

“I think all of us can connect to the power of missing a paycheck,” Purvis said. “They’ve now missed two. These are the people who protect us, who make our government run.”

At the Brooklyn event, 600 volunteers showed up over the holiday weekend to pack food bags in preparation for the giveaway. The event also had a staffed table where attendees could learn more information about SNAP (food stamp) enrollment and where and how to file taxes.

Bruce McClary, a spokesperson for the National Foundation for Credit Counseling, compared the national outpouring of support to the response to a natural disaster. “Not in my recollection has there been such a universal response,” McClary told USA Today. “The only difference is this is a man-made disaster.”

Among other companies and organizations offering help:

GoFundMe

The crowdfunding company, GoFundMe, found a way to help workers who are struggling to afford groceries or other household necessities during the shutdown. The company created a fundraiser for furloughed federal employees, with a goal of $200,000. The company reached its goal on Tuesday, just three days after it launched the campaign.

Funds raised will be distributed to nonprofits across the U.S. that provide workers with hot meals, personal-care necessities, and household items.

“I hope the shutdown ends soon,” GoFundMe CEO Rob Solomon wrote in a statement. “In the meantime, please join me and help our fellow Americans by providing some short term relief. This is not about politics. This is lending a helping hand to someone in need.”

Hyundai

Car payments can be one of the most expensive bills that come due each month. Hyundai announced that it will defer all loan and lease payments for federal workers for one month during the shutdown.

“We recognize that there are many federal employees who are Hyundai owners and are not receiving their normal paycheck,” Brian Smith, chief operating officer of Hyundai Motor America, told Business Insider. “Hyundai is a brand that aims to make things better for its customers and this is our way of showing customers ‘we have your back’ during this uncertain time.”

Progress Residential

In Dallas, Texas, this property-management company is deferring payments on rentals for federal employees. The company is working individually with affected renters on deferring January and February rent payments. Renters must simply show a furlough letter or proof of employment with an affected government agency.

“This is a unique nationwide situation, and we view it as an opportunity to demonstrate how deeply we appreciate the work that our civil servants and military men and women do for our country,” Chaz Mueller, Progress Residential’s CEO, told Forbes. “We recognize the hardship that many of our residents may be facing due to the government shutdown and want to alleviate the anxiety those families are facing.”

PayPal

In light of the shutdown, PayPal set aside $25 million through its PayPal Credit program dedicated to furloughed government workers. Federal employees are eligible for an interest-free cash advance of up to $500 if they are new or existing customers. The program will end when employees receive their first paycheck after the shutdown ends.

“Setting up this fund to assist federal workers in their time of need is our way of giving back to the communities we are a part of,” PayPal CEO Dan Schulman told CNBC. “I think it’s really important that CEOs think about their companies as part of the communities they live in—and serve. When you do the right thing, good things come back multifold to you.”

Major Telecom Companies

T-mobile, AT&T and Verizon announced in early January their plans to help customers affected by the shutdown. Federal employees are able to speak with a customer service representative about rescheduling payments. All three companies will waive late fees.

During the shutdown, U.S. Bank has offered several options for its customers. The first is a small low-rate loan between $100 and $6,000, available for customers who any type of U.S. Bank product.

JPMorgan Chase

When the shutdown occurred in December, Chase bank reached out to customers to offer help, automatically refunding their checking account overdraft and service fees. The bank also activated its Special Care Line (888-356-0023) with a team of specialists who have extended payments on customers’ car loans, provided 90-day relief on their mortgages, and removed minimum payments on their credit cards.

In his message to employees, Chase CEO Dimon added that the banking company is committing $1 million to Feeding America and United Way Worldwide to provide meals, financial services, counseling, and other assistance to federal workers and their families in need.

U.S. Bank

The company launched new low-rate, quick loan for customers needing assistance during the shutdown. The bank is offering mortgage-relief options as well. Affected customers can call its designated government shutdown line to speak with a representative.

“U.S. Bank is committed to doing the right thing for our customers,” stated Andy Cecere, the company’s CEO. “We understand the financial pressure that many of our customers who serve our nation are now facing and we’re here to help.”

Judging by the response of federal workers in Brooklyn, the helping hand hasn’t been taken for granted. “This is a lot,” the correctional officer said. “It’s heartwarming to know that the city is really coming together to help us federal employees and realize the impact it does have on our families,” she said. “It makes me feel very good and restored my faith in society, because we were losing it for awhile.”

New York’s Food Bank has a webpage to help furloughed workers locate their nearest food pantry or soup kitchen.

This story was originally published on The Bridge, a website about business in Brooklyn. 

Rachyl Houterman is a reporting intern at The Bridge and attends school at the University of Wisconsin-Eau Claire. In her free time, she enjoys exploring national parks, hiking, and reading


RELATED STORIES

From Day One Celebrates Its Fifth Anniversary

Half a decade ago, the news was erupting daily in an avalanche of headlines about Corporate America. A lot of those headlines were about scandals. About mistakes and injustice. These were not just mainstream media headlines, but also major stories emerging from digital media and social media. In fact, it seemed like for the first time everyone suddenly had a voice, and many of these voices were shouting. Many people within these companies were already committed to making positive change. But corporate values issues are often complex. They are typically interwoven with other business priorities, history, or plain old inertia. “Companies were being held accountable for their behavior in new and important ways, and it seemed like there was real, and possibly permanent change happening,” recalls From Day One CEO Nick Baily. “But then what? Even once you agree on a new set of values, there’s a lot of work to do in making them real.”  This was the historical turning point the three founders of From Day One were contemplating when they launched, exactly five years ago this month, the organization’s very first event, a one-day conference of hundreds of business leaders at BRIC House in Brooklyn, a place not previously known for business conferences. From the start, it was designed to be something different.The idea was that the country needed a “forum on corporate values,” a gathering of professionals to talk about the relationship between companies and their employees and communities. In other words, their stakeholders, rather than just their stockholders. The founders–Baily, Erin Sauter, and me–felt certain that we didn’t know the answer to these pivotal questions, but we felt equally certain that there were many people with inspiring, practical insight on these topics, and that bringing them together into the same room would be a positive first step.The first event was a hit. Speakers from companies including IBM, NBCUniversal and Condé Nast offered fresh ideas on “building a more purposeful team” and “setting your values and following them.” Sponsors ranged from AT&T to Con Edison to Eileen Fisher. Attendees, for their part, asked: What will you be doing for an encore?The three founders decided to bring the Brooklyn-bred idea to Chicago, Boston, and beyond. Five years later, From Day One has hosted 45 one-day conferences from Seattle to Miami. The pandemic produced an existential moment of doubt for the company, but necessity proved inspirational. From Day One has hosted more than 60 virtual conferences and 220 webinars. All told, more than 72,000 professionals in HR and related fields have attended From Day One’s events. This year, Inc. magazine recognized From Day One as one of America’s 5,000 fastest-growing companies. The audience at a From Day One conference in Atlanta; featured photo: a panel onstage in Seattle (Photos by From Day One)Since the company has taken a journalistic approach to its conversations, it has never lacked for topics. History-making events of the past five years provided fuel for conversations that From Day One’s founders never could have expected. To start with, the pandemic brought the remote-work revolution. As Harvard professor Tsedal Neeley told our virtual audience: “I am 100% convinced that, if we do this hybrid right and with courage, and we set our policies based on need and not fear, we’re preparing for the digital revolution that’s right around the corner.” She was prophetic about the challenge of getting it right.The murder of George Floyd inspired a push for racial justice in Corporate America that would prove to be fitful, but the conversation was groundbreaking. “All of a sudden, I was talking about this, and our employees’ eyes were opened. We’ve never really talked openly about racism before at work,” Hoai Scott of NBCUniversal told our audience in Los Angeles. As the pandemic eased, the pent-up demand for more rewarding and meaningful work triggered the Great Resignation that sent companies into a frantic search for talent, which has only somewhat eased. “Comparing where we are now to where we were pre-Covid, I think the employee is going to retain a lot of power,” AT&T executive Ben Jackson told our Dallas audience last year. In turn, the need to retain workers inspired a major push among companies for better learning-and-development programs. “Our vision is–and it’s very lofty–we want to redefine what education means in this country, full stop,” Walmart’s head of L&D said in a From Day One fireside chat.What may be the most consequential development of From Day One’s short life is a debate about not only the future of work, but the meaning of work in our lives. To be sure, our colleagues at Harvard Business Review, which celebrated its 100th anniversary last year, have been at this awhile. But recent years have turned this philosophical question into a competitive news beat for business reporters and thinkers like Anne Helen Petersen, who has spoken to From Day One’s audience about both of her recent work-focused books. She was early in raising the prospect that a flexible approach to work arrangements “could actually help us decenter work, just slightly, from its place of prominence in our world.”To offer such a vigorous schedule of events to talk about these issues, From Day One now has a team of 18 full- and part-time employees who’ve developed diverse areas of expertise in finding inspiring speakers, developing an engaged audience, staging well-run events, and helping sponsors grow their businesses.What’s next? From Day One is planning a rich assortment of live and virtual events for the rest of 2023 and all through 2024, including a conference next week in our neighbor borough of Manhattan. We hope you’ll join us for the next chapters of our story.Steve Koepp is From Day One’s chief content officer. 

Stephen Koepp | September 20, 2023

The Supreme Court and the Diversity Backlash: How Employers Can Respond Now

The backlash against diversity, equity, and inclusion (DEI) in corporate America is now in full swing. Conservative politicians have turned DEI programs into a campaign issue under the banner of anti-wokeness, with an increasing number of red-state legislatures seeking to ban DEI efforts altogether. Consumer boycotts have shaken name brands. Many corporate DEI budgets have been cut in the name of austerity, while surveys of employee sentiment show a rising tide of “diversity fatigue.” Many DEI leaders, who were given a mandate to help corporations “do better” in the realm of racial justice after the murder of George Floyd three years ago, have grown dispirited in their roles. In this environment, the U.S. Supreme Court’s 6-3 decision on June 27 striking down affirmative action as unconstitutional in higher education came as another blow to advocates of DEI efforts to make the U.S. a more equitable country. With the addition of three conservative justices by President Trump, the court’s action was widely anticipated by the academic community. But it was not only universities that were gearing up for the ruling. The business community was also expecting such a ruling; an impassioned friend-of-the court brief was filed by dozens of major technology, finance, and health care companies who support DEI efforts. Ranging from American Express to Walgreens, they pleaded with the high court not to come to the result that the majority ultimately did, because the named companies rely on “racially and ethnic diverse student bodies” to find their future workers.It is certain that there will be major workplace ramifications from the affirmative-action decision, even though that case applied to higher education rather than in the business world. (College admissions are governed by Title VI of the Civil Rights Act of 1964, whereas private employment is covered by Title VII.) Immediate questions arose in many workplaces about the consequences of the court’s ruling. Will DEI programs now be weakened or banned? Can race still be considered in employment decisions? And will an activist Supreme Court look for a suitable case in which to extend its controversial educational dictates to the workplace?Though the answers to those questions are not entirely clear at this point, legal and HR experts advise advocates of DEI to be proactive. Here are five essential steps that corporate leaders can take in this new, post-affirmative action world:Remind Stakeholders Why DEI Is Beneficial to EmployersThe corporate rationale for DEI has been twofold: not only is it morally right, but it brings benefits to corporate culture and the bottom line. “Study after study demonstrates that, across organizations, diversity enhances critical thinking, creativity and collaboration, as well as productivity, profitability and performance,” wrote Ford Foundation CEO Darren Walker last week in the New York Times. “It is a national tragedy that diversity is now a contested issue rather than a common interest.” Make Sure Your DEI Programs Aren’t in Conflict With Current LawsIt’s definitely time to review your current DEI framework in consultation with your legal team and employment-law experts. “Be sure your policies and programs don’t unintentionally run afoul of anti-discrimination laws and recognize that quotas and preferences–as well as perceived unfairness–can create legal problems,” advises the Fisher Phillips law firm. “You should also review your employee handbook and other written policies to ensure they are up to date, aligned with your goals, and legally sound.” New York University legal experts Kenji Yoshino and David Glasgow, authors of a new book on how to talk about DEI in the workplace, offer easy-to-follow instructions for a “self-audit” of current DEI initiatives to avoid unwanted legal exposure. They suggest using codes to sort programs as red (high risk), yellow (medium risk), and green (low risk). But they discourage making knee-jerk semantic changes to terms like DEI or diversity: “We think it is unnecessary to revamp the language in this field. Although the court held that the universities’ interests in achieving a diverse student body did not justify a race-conscious admissions policy, companies are still allowed to strive for a diverse workforce.” Take Prudent Steps to Avoid the Possibility of a Reverse Discrimination LawsuitThe number of corporate DEI programs surged after the 2020 murder of George Floyd and the social-justice movement that followed. The result has been a fierce legal backlash, with conservative politicians, right-wing activists, and red-state legislators working strenuously to challenge them. In the wake of the Supreme Court’s new ruling, this trend is expected to intensify. Andrew Turnbull, a partner at the Morrison Foerster law firm who represents companies in labor and employment litigation, told Axios, “When people hear affirmative action has been overruled, they may say, ‘Well, why is my company still doing diversity programs?” The decision is also expected to embolden conservative activists. Will Hild, the executive director of Consumers’ Research, a right-wing advocacy group, told the Washington Post that the ruling “will put the wind in the sails of groups like ours, who want to get the woke, racially based hiring and promotion schemes out of corporate America.” America First Legal, a group headed by former Trump adviser Stephen Miller, has recently filed complaints with the Equal Employment Opportunity Commission (EEOC), asking it to investigate corporate diversity and hiring practices at major companies such as McDonald’s and Unilever. And in June, a federal jury in New Jersey ordered Starbucks to pay a white former manager $25.6 million, finding that she had been fired became of reverse discrimination.Although reverse-discrimination cases are not a new phenomenon, the potential risk of these claims may be increased by the Court’s shift in position, as well as the political ferment. Employers now should educate themselves about state legislation targeted at restricting DEI initiatives, as in Florida and Texas and brace themselves for possible challenges. This is an area that may well benefit from a lawyer’s trained eye. Alvin B. Tillery, Jr., director of the Center for Study of Diversity and Democracy, cautions against overreacting. Tillery told the New York Times, “I do worry about corporate counsels who see their main job as keeping organizations from getting sued—I do worry about hyper-compliance.”Explore New Ways of Growing Your Job Candidate PoolCorporate America has become dependent on higher education to provide a pool of job-ready, diverse candidates. That flow is certain to be stanched in the future by the court’s affirmative-action decision. “I don’t believe that there’s a dispute that university demographics will become more homogenous and less diverse,” said Janine Yancey, founder and CEO of Emtrain, an inclusion-and-belonging consultancy. This will lead to “a smaller talent pipeline,” she told From Day One. It has measurably occurred already in the nine states that have banned race-conscious affirmative action policies, generally through ballot initiatives.This has been particularly true in Michigan and California. After California voters enacted a ban on affirmative action in 1996, the number of Black students at the elite University of California campuses in Berkeley and Los Angeles plummeted. Likewise, since Michigan voters ended affirmative action in 2006, the number of Black students at the University of Michigan has dropped dramatically.Employers will need to cast a wider net now to secure a diverse workforce. Rhonda V. Sharpe, the founder and president of a think tank on equity, the Women’s Institute for Science, Equity, and Race, sees a silver lining to such a result. Said Sharpe, “I will not shed a tear for affirmative action but will rejoice in the possibilities for Historically Black Colleges … and Hispanic Serving Institutions.”  In fact, the impact of affirmative action was mostly in elite universities. “The majority of Black and Hispanic students attend universities that accept more than three-quarters of their applicants,” wrote academics Richard Arum and Mitchell L. Stevens in the New York Times. “The current opportunity to bring racial equity to American higher education lies in a collective re-commitment to the quality and success of more accessible institutions.” Many DEI experts recommend that corporate HR leaders look even further upstream, investing in programs to develop underserved youth long before they make a decision about higher education. Put More Stress on Employee RetentionWith a less diverse candidate pool, experts see more problems retaining a racially or ethnically representative workforce. “No one wants to work in an environment where they are ‘the only,’” Janice Gassam Asure, the founder of BWG Business Solutions, a consultancy designed to help organizations create more inclusive environments, wrote in Forbes. She warns that the affirmative-action decision “will not only make it more challenging to retain the employees you already have, but it will likely be more difficult to attract new talent from underrepresented communities.”It is important to pay close attention to employee sentiment in the immediate aftermath of the affirmative action decision. Y-Vonne Hutchinson, the CEO of ReadySet, a DEI consulting and strategy firm, asserts that some employees may be unsettled by this decision: “Your employees, particularly those from historically marginalized backgrounds, may be experiencing anxiety, stress, sadness, fear, and disappointment right now. They may be struggling to process what this all means–for them, and their families.” Hutchinson urges companies to both “provide space” for those employees and provide support such as employment resource groups (ERGs) or extra mental health resources.Stalwarts like Iesha Berry, chief diversity and engagement officer and head of people experience at DocuSign, have no intention of giving in to the current political pressure against DEI. “It doesn’t change our focus,” said told the Wall Street Journal. Diversity is “not a stand-alone, and it’s not something that is the flavor of the day, but critically important to the business and the business success.” Andrea Sachs, a graduate of the University of Michigan Law School, began her career as a lawyer in Washington, D.C., at the National Labor Relations Board, then spent nearly 30 years in New York City as a reporter at Time magazine. She is currently the editor of The Insider, a weekly digital publication.

Andrea Sachs | July 05, 2023

Has the HR Profession Gone From Undervalued to Overwhelming?

In just three years, HR leaders have gone from aspiring to be where the action is to rarely getting a break from it. The professionals once regarded as paper pushers and corporate law officers are now charged with an increasingly long list of duties: developing the future workforce, protecting employees’ mental health, maintaining equity, preventing attrition, and lots more. For many if not most HR professionals, the result is burnout. Just as one crisis eases, another springs up, with HR often the first responders. In a recent surreal turn reported by Bloomberg, some HR leaders have now been tasked with laying off their peers when even the HR department starts getting the axe. Many leaders in HR have celebrated the expansion of HR into so many business operations, but has the department taken on too much too quickly? Is the job overwhelming? According to a recent poll by business software company Sage, 95% of HR leaders and C-suite executives say that HR role is too much work.Tamara Jolivette-Smith, the director of HR at health care provider Houston Methodist agrees. “In day-to-day operations, the work never stops,” she said in an email to From Day One. “New and unexpected issues continue to arise, with mental health issues becoming more and more prevalent with employees.”To handle the department’s growing responsibilities, Jolivette-Smith added three new positions to her team: two new hires for employee relations and one for recruiting–the duties that consume most of her team’s time. She’s ready to add more if that’s what it takes. “Burnout is real and I want to ensure the integrity of the team,” she added. Indeed it is: Few HR practitioners need reminding how exhausting the work can be. According to the Sage poll, 81% of HR leaders said they are personally burnt out, and 62% said they’re considering leaving the field.The department has spent three years battling challenge after challenge, Christopher Shryock, SVP and chief people officer at Sam’s Club, told From Day One. First there was Covid, then the Great Resignation and the need for rapid hiring, and now they’re managing fallout from massive layoffs, specifically in the tech industry. That’s just the new stuff.Shryock said everyone is feeling the burn, not just the HR department. The difference is that HR has an obligation to put on its proverbial oxygen mask first. Shryock believes that a burnt-out HR department is an ineffective one, and the messages that HR department sends about well-being have to be applied to the HR team first. “We talk a lot about how our team isn’t going to be very helpful to the organization if we don’t have our own oxygen masks,” he said. “We have to take some of our own medicine in terms of what we are saying, what we are articulating, and what we are encouraging the rest of the organization to do.”One reason for the significant burnout in the HR function may be its demographic makeup. HR departments are predominantly staffed by women, and women bear the brunt of unpaid work. “You’ve got 34% of women today saying they’re burned out, vs. 26% of men,” said Shryock, citing a 2021 Gallup poll. “That’s a delta of eight percentage points. If you just go back three years, that delta was three percentage points.”Despite the weight of the work, HR leaders are remarkably resilient and optimistic. The Sage poll found that 91% of HR leaders are excited about the future of HR, and 86% consider themselves speedy and agile. “I love HR and people, and I love working through the challenges,” Jolivette-Smith said. So, what does HR need to succeed? According to the poll, the department needs to upskill its team with a focus on tech specialization, invest in well-being initiatives, and develop stronger peer-to-peer networks within HR. Jolivette-Smith said that she’s taking team lunches and making time for off-site activities so her HR team can give back to the community together; she has added morning huddles to field team questions and guide her staff through what’s on deck for the day.  At Sam’s Club, Shryock has been automating and digitizing as much as possible. His team has invested in consolidating data across fewer tech tools and apps, automating processes, making process approvals easier, and in opening learning opportunities “so the HR team can be out of the minutiae and can be more focused on value-add and engaging work.” He said digital products and tech teams in the company are great partners. If the HR team can take care of its own well-being first, they can use that energy to pour into the rest of the organization. Shryock cited a favorite quote: “It’s chaos, be kind,” attributed to late author Michelle McNamara. “I think if we take that mentality, not only of the business functions and the associates and the employees we’re supporting, but we take that mentality with each other, I think that can actually unlock a lot for us.”Emily McCrary-Ruiz-Esparza is a freelance reporter and From Day One contributing editor who writes about the future of work, HR, recruiting, DEI, and women's experiences in the workplace. Her work has appeared in The Washington Post, Fast Company, Quartz at Work, Digiday’s Worklife, and Food Technology, among others.

Emily McCrary-Ruiz-Esparza | April 18, 2023