Amazon warehouse workers’ case to be heard by Supreme Court
New York — The U.S. Supreme Court has agreed to hear a case brought by former Amazon warehouse workers that could determine whether companies have to compensate employees for time spent undergoing end-of the-shift security searches.
The case, Integrity Staffing Solutions v. Busk, involves former temporary employees of Integrity Staffing Solutions, which provides temporary workers for Amazon’s huge warehouses. The workers said they spent nearly 30 minutes some days waiting for the checks, time for which they were not compensated. (Amazon requires everyone entering and leaving its warehouses to pass through the security screens to prevent theft.)
The employees filed the suit in 2010, contending that the Fair Labor Standards Act required Integrity to pay them for activities that are “integral and indispensable” to an employee’s job. In April, the U.S. Court of Appeals for the 9th Circuit ruled that the workers’ suit could go forward, which led similar cases being filed against Amazon directly and other third-party warehouse contractors. The Supreme Court is reviewing a federal appeals court decision that allowed that lawsuit to proceed.
Ascena Retail Q2 profit down; cuts outlook
Suffern, N.Y. — Ascena Retail Group, the operator of Lane Bryant, Justice and Dress Barn stores, reported second-quarter profit of $31.9 million, down from $47.2 million in the year-ago period. Looking ahead, the company reduced its full-year adjusted earnings guidance to a range of $1.00 to $1.05 per share from its previous guidance range of $1.10 to $1.15 per share.
Sales increased to $1.27 billion from $1.24 billion last year. Same-store sales were flat.
The retailer attributed its profit decrease primarily to profit declines at Justice stores and increased operating expenses from growth-related investments in new stores, merchandising and design resources and e-commerce capabilities, according to the company.
“Second quarter net income was slightly above our revised expectations, despite softer than expected sales in January driven primarily by challenging weather that continued to negatively impact sales into early March,” said Ascena president and CEO David Jaffe. “However, in warmer regions sales have been in line with expectations. We are implementing promotional strategies and receipt flow adjustments to bring inventory balances back to targeted levels.”
Jaffe remained optimistic about the company outlook, citing very good progress on long range strategic priorities related to synergy initiatives and recently completed construction of a new national retail distribution center and a new e-commerce fulfillment center that becomes operational in the spring.
Bitcoin platform Mt. Gox files bankruptcy; losses total $500 million
Tokyo – Mt. Gox, the Japan-based global bitcoin platform which unexpectedly went offline on Feb. 25, 2014, has filed for bankruptcy and publicly stated that hackers may have stolen as much as $500 million worth of bitcoins from the company and its users.
Following a Feb. 28 bankruptcy petition in Tokyo District Court, Mt. Gox issued a public statement where it listed assets of about $38 million and liabilities of about $64 million. In the statement, Mt. Gox also said illegal access through a software bug in the bitcoin system that began in February 2014 likely resulted in the disappearance of about 750,000 bitcoins belonging to Mt. Gox users and 100,000 bitcoins belonging to Mt. Gox. Furthermore, Mt. Gox said it discovered a discrepancy of about $280 million between the amount of cash financial institutions are holding for Mt. Gox users and the amount of cash they deposited.
Mt. Gox also said it is asking the court to consider allowing it to restore its business to enable eventual repayment of customers and creditors. The current combined value of the lost bitcoins is around $500 million. The company has opened a customer support hotline.