Current Events in March 2016

If you had put money on DraftKings and FanDuel, the two daily fantasy sports (DFS) giants, prevailing over New York Attorney General Eric Schneiderman, you would have lost money.

Schneiderman issued a statement Monday, saying his office had reached settlements with both DraftKings and FanDuel, which calls for both companies to no longer accept players from New York state.

“I’m pleased to announce that both FanDuel and DraftKings will stop taking bets in New York State, consistent with New York State law and the cease-and-desist orders my office issued at the outset of this matter,” Schneiderman said in his statement. “As I've said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it.”

Schneiderman sued both companies in October, claiming their DFS games amounted to illegal gambling. After he issued a cease and desist order, both companies appealed, saying their games require skill and are legal under federal law.

Raising the ante

Then Schneiderman raised the ante, amending his complaint to demand civil damages from the two companies and to require them to pay millions in restitution to New York players who had lost money.

Knowing when to hold 'em and when to fold 'em, the two companies agreed to give up the lucrative New York market, at least for now. In its statement, DraftKings suggested the withdrawal from New York might be temporary.

“We will continue to work with state lawmakers to enact fantasy sports legislation so that New Yorkers can play the fantasy games they love,” the company said.

Earlier this month, Virginia became the first state to enact legislation that specifically declares DFS games to be legal. Both companies are actively encouraging other states to take similar action.

Schneiderman, meanwhile, made it clear his case against DraftKings and FanDuel has not been affected by the settlement. He said he will continue to press false advertising and consumer fraud charges in court.

You probably hear it a lot – Americans aren't saving enough for retirement. So you finally decide to do something about it and open an Individual Retirement Account (IRA).

Now, you have to make a choice between opening a Traditional IRA or a Roth IRA. There are important differences.

A Traditional IRA provides a tax break when you save. Suppose you put away $2000 in a Traditional IRA this year. On your 2016 federal and state tax returns, you get a $2,000 deduction. Better still, you don't pay taxes on capital gains or dividends, as long as the money stays in the account.

However, when you are 70.5 years old, you must begin making withdrawals from the account and the money you withdraw is taxed as ordinary income. If you make a withdrawal before the age of 59.5, you'll pay a 10% penalty on top of the income tax.

Roth contributions not deductible

A Roth IRA's primary difference is the contributions to the account are not tax deductible and the money is not taxed when you pull it out. However, the money the account produces over the years, in the form of capital gains and dividends, is never taxed.

So which is better? Increasingly, financial advisors favor the Roth, but it's going to depend on your individual circumstances.

When the Traditional IRA was established, it was generally accepted that most people would retire when they could start receiving social security. If they had high incomes during their working years, they were in higher tax brackets and those deductible contributions saved them money at tax time each year.

When they started making withdrawals, the reasoning went, they would be in a lower tax bracket and therefore, would pay less tax on their savings.

But people are working longer, and many continue to earn high incomes in retirement, through part-time work and income from businesses and investments. The tax bite on Traditional IRA distributions may be greater than anticipated.

Tax-free income

If you own a Roth IRA, your withdrawals are not taxed. True, you passed up a tax deduction for most of your working life, but if your investment of $50,000 has doubled over the years, you have essentially earned $50,000 in tax-free income.

There are also fewer distribution restrictions on a Roth IRA. Generally, you can withdraw money without penalty under age 59.5 if you have owned the account for more than five years.

There are limits to the money you can put into an IRA each year, but the amount is the same for both the Traditional and Roth IRAs. For the 2016 tax year consumers can put in up to $5,500. If you are 50 or older, you can put in $6,500.

If you own a kindle purchased before 2013, Amazon says you'll need to install a critical software update before Tuesday, March 22, or lose access to the Internet.

Without Internet access, of course, you would be limited to reading the books and magazines currently on your e-reader – you would not be able to download more. The update is required on devices sold in 2012 or before.

Updating before March 22 is fairly simple. If your Kindle e-reader does not have the latest software version, connect your device to Wi-Fi to receive the software update.

How to update

Once connected to the  Internet:

1. From the home screen, select Menu and then choose Sync and Check for Items.
2. Plug the device in and leave it plugged in, connected to the Internet, overnight.

Amazon says the new software will download automatically and self-install. The device may restart multiple times during the process.

If you don't update the software by the deadline, you can still install it – but it will have to be done manually, since you will no longer have Internet access. You will be able to download the software update to a PC, then connect the Kindle via USB port, and transfer it that way.

Once you have successfully installed the update, you'll receive a message on your screen to that effect.

Affected devices

The devices requiring an update are:

• Kindle 1st Generation (2007)
• Kindle 2nd Generation (2009)
• Kindle DX 2nd Generation (2009)
• Kindle Keyboard 3rd Generation (2010)
• Kindle 4th Generation (2011)
• Kindle 5th Generation (2012)
• Kindle Touch 4th Generation (2011)
• Kindle Paperwhite 5th Generation (2012)

Still confused? Amazon has step-by-step directions here.

Some companies provide college tuition assistance for their employees, a nice perk when the cost of a college degree keeps rising.

But many employees – especially in the fast food industry – can't take advantage of that perk because they lack a high school diploma. Church's, the fried chicken franchise, is now addressing that.

The company has announced it is expanding its Stride for Success program to all company-owned restaurants. Employees can earn a high school diploma while working by participating in a company-funded partnership with Penn Foster, which operates an accredited online high school diploma program.

According to the ConsumerAffairs Research Team, Penn Foster has been accredited since 1972 and is licensed by the Pennsylvania State Board of Private Licensed Schools. The school has a focus on lifelong learning as well as traditional high school education.

Chance to advance

The company says its education program is designed to encourage Church's employees to reach educational milestones and advance within the company. For example, for someone to become a manager of a company-owned Church's store, he or she must be a high school graduate.

Under this program, Church's covers 100% of the cost associated with the program. Penn Foster designed a curriculum specifically for online study, allowing students to complete their diploma around their work schedules.

"Our people are and always have been our strongest assets," CEO Jim Hyatt said in a statement. "Laying the foundation for our employees to reach integral milestones and harness their potential will serve to both enrich their lives personally and strengthen our brand as a whole."

The program can not only help employees move up within the company, a diploma also clears the way for college work as well, perhaps moving on to a job in another industry.

For years, jobs in fast food were highly transitory, with people moving on after just a few months. In the wake of the 2008 financial crisis, many employees work at fast food restaurants for years because there are so few other jobs.

Franchise stores next

Church's said it hopes to expand the education benefit to franchisees in the future. Church's Chicken has more than 1,600 stores in 30 countries.

Companies that provide help with a high school diploma are more rare than those helping employees with college tuition. GED Easy reports several large, mostly minimum wage employers, such as KFC and Walmart, provide help to employees preparing to take a GED exam.

The rise in existing-home sales in January to the highest annual rate in six months was undone in February.

The National Association of Realtors reports total sales of previously-owned homes -- completed transactions that include single-family homes, townhomes, condominiums, and co-ops -- plunged 7.1% last month to a seasonally adjusted annual rate of 5.08 million. Even with that huge decline, sales are up 2.2% from a year earlier.

"Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest," said NAR Chief Economist Lawrence Yun. "The lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings. However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers."

Prices and inventory

The median existing-home price for all housing types last month was $210,800, up 4.4% from a year earlier, marking the 48th consecutive month of year-over-year gains.

Total housing inventory at the end of the month was up 3.3% -- to 1.88 million existing homes available for sale. However, that's down 1.1% from a year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, compared with a supply of 4.0 months in January.

Sales by region

All four major regions experienced sales declines in February.

• Home sales plummeted 17.1% in the Northeast to an annual rate of 630,000, but are still 5.0% above a year ago. The median price dipped 0.8% to $239,700.
• In the Midwest, sales were down 13.8% to an annual rate of 1.12 million -- the same as in February 2015. The median price was $162,700, up 6.3% from a year ago.
• Homes in the South sold at an annual rate of 2.20 million, down 1.8% in February, but are still 3.3% higher than they were at the same time in 2015. The median price was $186,400, a 5.0% gain from a year ago.
• Existing-home sales in the West were off 3.4% to an annual rate of 1.13 million, but remain 0.9% higher than a year ago. The median price rose 7.0% from February 2015 -- to $308,800.

Nissan North America is recalling 46,671 model year 2014 Nissan Rogues manufactured July 25, 2013, to December 21, 2013, and February 1, 2014, to June 7, 2014.

Improper nickel plating of components within the fuel pump may result in the fuel pump failing.

If the fuel pump fails, the vehicle may stall without warning, increasing the risk of a crash.

What to do

Nissan will notify owners, and dealers will replace the fuel pump, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Nissan customer service at 1-800-647-7261.

Because the traditional tax deadline of April 15 is a holiday this year, the deadline for filing your 2015 federal income tax return has been extended to April 18.

That's all well and good to have an extra weekend, but you shouldn't procrastinate any longer. Waiting until the last minute to fill out your return could lead to more mistakes and missed deductions. It also gives scammers more time to steal your identity and your return.

The Internal Revenue Service (IRS) reminds taxpayers that it can help with last minute assistance, even though its budget for customer support has been slashed in recent years. It says there are a number of interactive tools at IRS.gov that can help.

Interactive Tax Assistant

Among them is Interactive Tax Assistant, which the IRS says can answer most taxpayer questions and point taxpayers in the right direction for help. Tax preparation software has taken a lot of the guesswork out of filing, as well as reducing the number of errors.

If you earned $62,000 or less in 2015 you can use the IRS Free File program, choosing from one of the 13 commercial tax-prepartion software packages that participate. You just have to answer a few general questions and the software does the calculations. It's the same software others pay to use.

Self-employed taxpayers have a bit more at stake, since there are many business deductions available that, if not claimed, can leave money on the table. Dara Luber, Senior Manager of Retirement at TD Ameritrade, emailed us a list of five business deductions she says are often overlooked.

Overlooked deductions

• Retirement plan expenses: Individual/Solo 401k, SEP IPA, SIMPLE IRA, and profit-sharing plans may provide tax benefits.
• Travel expenses: Mileage, hotel, meals, and baggage fees can all be deducted for associated business travel.
• Medical insurance: A small business owner can write off medical insurance costs.
• Home office expenses: It must be space solely dedicated to business, but you can deduct a portion of your utilities and mortgage.
• Subscriptions, supplies, or membership expenses: Expenses associated with a professional organization, a trade publication aimed at helping you grow your business, can be deducted.

Meanwhile, if you've already filed your return and are wondering when you will get your refund, the IRS has a tool for that. Where's My Refund tracks the progress of your payment, much like you would track the progress of a package you're having shipped.

State financial regulators in New York said a company called Blue Global LLC made two big mistakes.

First, it marketed payday loans to New Yorkers. Payday loans are illegal in the state.

Second, it failed to adequately protect the personal information it collected on New Yorkers, and some of that information ended up in the hands of scammers.

As a result, the New York State Department of Financial Services (DFS) has entered into a settlement with Blue Global, requiring it to pay a $1 million penalty and stop its payday loan-generation activities in the state of New York.

The settlement follows a DFS investigation that reportedly found Blue Global had suggested to consumers that any personal information collected through its web sites was perfectly safe. It was also charged with marketing illegal payday loans to New Yorkers.

“Payday lending is illegal in New York and lead generators such as Blue Global, who acquire and profit from New Yorkers’ personal information and advertise that payday loans are legitimate and lawful, violate New York’s Financial Services Law and will be held accountable,” Acting Department of Financial Services Superintendent Maria T. Vullo said in a statement.

“Broken promises”

When a consumer went to a Blue Global website, he or she was promised the personal information submitted was a top priority. In reality, the DFS says its investigation showed Blue Global took no measures to protect the information when it was shared with third parties. As a result, it often ended up in the hands of scammers.

DFS says these scammers used names, telephone numbers, email addresses, and even bank account numbers to commit fraud and harass consumers. It may have very well been a source, at least partially, for a notorious payday loan scam going back several years.

Fake payday loan scam

At the beginning of the decade a widespread scam involved a caller telephoning victims, telling them they had defaulted on a payday loan and they were about to go to jail. They could avoid this embarrassment by making a payment, right now, over the phone.

The scary thing was the scammer seemed to have a lot of personal information about the victims, most of whom said they never took out a payday loan. However, many reported beginning the application process for one online, at a website.

The DFS says Blue Global used the information it collected to sell leads to payday loan companies. These leads contained personal data on some 180,000 New Yorkers. In all, the agency says Blue Global collected data on about 350,000 consumers in the state.

Although it's not roaring back, the U.S. economy appears poised to continue expanding in the early part of this year.

The Conference Board reports its Leading Economic Index (LEI) inched up 0.1% last month following declines of 0.2% and 0.3% in January and December, respectively.

While there was a slight increase in February, Ataman Ozyildirim, Director of Business Cycles and Growth Research at The Conference Board notes that housing permits, stock prices, consumer expectations, and new orders remain sources of weakness. Still, he adds, “The outlook remains positive with little chance of a downturn in the near-term.”

The LEI is constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component -- primarily because it smooths out some of the volatility of individual components.

LEI components

The ten components of the LEI include:

• Average weekly hours, manufacturing
• Average weekly initial claims for unemployment insurance
• Manufacturers’ new orders, consumer goods and materials
• Institute for Supply Management Index of New Orders
• Manufacturers' new orders, nondefense capital goods excluding aircraft orders
• Building permits, new private housing units
• Stock prices, 500 common stocks
• Leading Credit Index
• Interest rate spread, 10-year Treasury bonds less federal funds
• Average consumer expectations for business conditions

For the first time in six years customer satisfaction with dealer service related to an automotive recall has declined, according to J.D. Power.

The drop, which came amid a record number of recalls, is the result of customers feeling that dealers don't give the same level of attention to recall work as they do to non-recall maintenance and repairs.

The firm's U.S. Customer Service Index (CSI) study measures customer satisfaction with service at a franchised dealer facility for maintenance or repair work among owners and lessees of 1- to 5-year-old vehicles.

The National Highway Traffic Safety Administration (NHTSA) reports that more than 51 million vehicles were recalled last year. And, as recall numbers soared, customer satisfaction with recall service dropped to 781 on a 1,000-point scale in 2016 -- a drop of eight points. Satisfaction among customers with non-recall servicing averages 809.

Shoddy treatment

Compared with customers having non-recall work performed, those having recall work done are less likely to have their vehicle returned to them cleaner and with the same settings as when they brought it in, and less likely to be contacted by the dealer after the service is complete.

"While it may be tempting for dealers to focus more on repair or maintenance work, recall customers represent both an opportunity and a risk to the brand and dealer," said Chris Sutton, vice president, U.S. automotive retail practice at J.D. Power. "There is a need for consistency in the service experience, regardless of the reason for the visit. A lack of consistency, particularly for recall work, can damage customers' perceptions of the brand and negatively impact their likelihood to recommend and repurchase the brand."

Nameplate rankings

Audi ranks highest in satisfaction with dealer service among luxury brands, with a score of 874. It's followed by Lexus (869), Cadillac (863), Mercedes-Benz (857), and Jaguar and Lincoln in a tie (856 each).

MINI ranks highest in satisfaction with dealer service among mass market brands, at 858. Buick (849), GMC (830), Chevrolet (818), and Hyundai (814) round out the top five.

New moms and pregnant women often suffer from bouts of depression, leading a government panel to recommend recently that all such women be screened for the condition.

But while such screening may prevent complications from depression, it can also result in hefty increases in life and disability insurance premiums, as insurance companies try to anticipate who is likely to become disabled or commit suicide, a recent New York Times investigation found.

In some cases, insurers may even decline to write a policy for someone who was diagnosed with depression, however fleeting. In others, they may exclude mental health conditions from coverage.

The problem is that the actuaries who calculate premiums are using data on depression that includes more general and long-term cases as well as prenatal and postnatal depression, which tend to be short-term if promptly treated.

Stock up now

While no one is suggesting new and potential mothers should avoid being screened for depression, there are a few defenses available.

The simplest is that young women should buy as much life and disability insurance as they can afford before becoming pregnant.  

The good news on that front is that life insurance rates in general have never been lower, according to a recent survey by Lifequotes.com, an online exchange that provides quotes from up to 50 insurers.

The survey not only found premiums at an all-time low but also discovered that companies are loosening their underwriting standards somewhat, offering more coverage to consumers with risk factors than before.

For example, some of the lowest premiums include:

• A 30 year-old female who stands up to 5'8" in height and weighs as much as 190 lbs. can now buy a $250,000, 10-year term life policy for only $102 per year.
• A 40 year-old female with a cancer death in her immediate family history can buy $250,000 of 30-year level term insurance for just $299 per year.
• A 50 year-old male can buy a $500,000, 20-year term life policy for $924 per year, even if he smokes a cigar during his weekly golf outing.
• A 55 year-old male whose blood pressure is controlled by medication can now buy $1 million of 20-year term life insurance for only$2,743 per year.

New moms' problems aside, most Americans actually have too little insurance today, at least according to the insurance industry. 

The Life Insurance Market Research Association (LIMRA) reports that 30% of U.S. households (35 million) do not have any life insurance and only 44% of U.S. households own an individual life insurance policy. 

For most families, a term life policy provides the most coverage at the lowest cost over the term of the policy.

The bond between humans and their pets is special and often quite strong. Dogs and cats are like members of the family -- which is why losing one can bring such immense grief and stress.

To honor this difficult time, some companies have begun offering their employees paid time off for pet bereavement.

It doesn’t fall under the genre of “vacation” or “sick” day, and pet bereavement days aren’t required under any federal or state law. But several companies -- including VM Ware, Maxwell Health, Kimpton Hotels and Restaurants, and pet insurance firm Trupanion -- compassionately choose to offer their employees time off to grieve the loss of their pet.

“We allow people to actually do that grieving process and just be able to heal,” said Dani Kahn, coordinator at Trupanion. “I think you need closure when you lose a pet, and it’s important to have the time to do that.”

Values the loss

Studies show that, emotionally, the loss of a pet gets processed the same as the loss of a close friend or family member. After the initial shock, there are four painful stages of grief to wade through before reaching the “acceptance” stage.  

When a person or employer devalues the loss of a pet (for instance, in saying that it’s, “just a dog” or “just a cat”), experts say it can hinder the grieving process.

Pet loss counselor Janet Zimmerman believes it’s critical for pet owners to take time off following the loss of a pet.

"It's really very, very difficult to function, and if you can't function, you certainly can't function at work, and you're really not the person you were before,” Zimmerman told CBS News Miami. “You need the time to get back to some sense of normality.”

Software companies VM Ware and Maxwell Health offer flexible days off to their employees following the loss of a pet. Kimpton Hotels and Restaurants allow managers to grant their employees up to three days off from work, and Trupanion offers one paid pet bereavement day.

While some say this should be the norm for businesses, others wonder if pet bereavement days have the potential for misuse. What happens, for instance, if an employee is dealing with the death of a fish?

Easter has long been a favorite holiday for consumers – in many ways, it can be the definitive marker for the arrival of Spring, and children are always excited to see what the Easter bunny has brought them. This year, it seems that our lapine friend will really be loading up his basket.

The National Retail Federation (NRF) predicts that consumer spending on Easter will be greater than ever this year. According to the group's Easter Spending Survey, it calculates that each person celebrating the holiday will spend an average of $146 dollars, for a grand total of $17.3 billion – the most spent in the 13 years since the annual survey began.

Shopping for Spring

This year’s estimate is up dramatically from last year’s numbers, when consumers spent $16.4 billion on the holiday. Part of the reason may be that “Easter shopping” may include more general items that people want for the Spring.

“Retailers are beginning one of their busiest times of year and are more than ready as consumers shop for spring essentials. . . Shoppers will find promotions on a number of items on their lists, from Easter baskets to sports equipment, home goods, garden tools and more,” said Matthew Shay, President and CEO of the NRF.

Spending breakdown

When spending was broken down, the survey predicted that consumers will spend $5.5 billion on food, $3 billion on clothing, $2.7 billion on gifts, $2.4 billion on candy, and $1.2 billion on flowers. As for where shoppers will go to find their products, 58.4% said they would go to a discount store, 41.4% will visit department stores, and 24.7% will head for local, small businesses.

A good number of shoppers (21.4%) will forego going out to shop altogether and will purchase items online. A slightly higher number of people (22.8%) will use their smartphone to research products, with 14.9% going a step further and completing a purchase on their handheld device.

Activities for the holiday are varied, but many of the old staples remain popular – 57.8% say they will visit with family and friends, 51.3% will go to church, and 15.6% will go out to a restaurant to eat. Many children will be getting in on the festivities as well, with 31.4% expected to participate in an Easter egg hunt and 13.9% predicted to open gifts. 

Wednesday's release of new home construction data showed a sharp rise in homebuilding activity, but it might not be enough to meet demand.

A survey by the National Association of Realtors (NAR) shows strong preference among consumers for single-family homes in the suburbs, but those homes are getting hard to find.

For the last year there has been a decline in inventories of existing homes for sale. For far longer, new homes – especially those with entry level prices – have been even harder to find.

The NAR survey data reveals that 85% of current homeowners and 75% of renters would prefer to buy a single-family home. And they aren't looking for homes in the city. Only 15% of homeowners and 21% of renters would choose to by a home in an urban area.

Plenty of demand, but not supply

The NAR's chief economist, Lawrence Yun, says the current imbalance between supply and demand has caused prices to rapidly escalate in several of the “hot” markets in the U.S. There's plenty of demand, Yun says, but not enough supply. He says homebuilders need to start turning out more single-family homes.

But another housing economist, Jonathan Smoke, of Realtor.com, sees trouble in this week's report on housing starts.

“It is somewhat concerning that the pace of starts is now greater than the pace of permits,” Smoke said in an email to ConsumerAffairs. “This could be a one-month anomaly given the tendency of the starts data to be revised, but if the pattern holds, it would signal slower growth ahead in construction activity. That is not what the market needs to address the undersupply of both for sale and for rent units on the market.”

Post housing bubble slump

New home construction slowed almost to a standstill in the wake of the financial crisis and the collapse of the housing market. When it resumed, builders tended to concentrate on more expensive homes because entry level houses are less profitable.

The lack of new homes, coupled with fewer homeowners putting their houses on the market, has created a shortage in some markets, and bidding wars by potential buyers. Yun worries it could eventually hurt the housing market.

“A high number of homeowners are expressing that it’s a good time to buy and this sentiment is no doubt being fueled by the $4.4 trillion in housing equity accumulation in the past three years,” Yun said in a release. “On the other hand, accelerating home prices and the perceived difficulty in obtaining a mortgage appears to be tugging at the confidence of renters.”

There were 5.5 million job openings in January, a gain of 260,000 from the month before, according to the Bureau of Labor Statistics (BLS).

Hires, on the other hand, fell 5.0 million while separations inched down to 4.9 million. Within separations, the quits rate was 2.0%, and the layoffs and discharges rate was 1.2%.

For 2015 as a whole, the annual number of hires and quits increased, while the annual number of layoffs and discharges edged up. The annual number of other separations was essentially unchanged.

Job openings

The January job openings rate was 3.7%, with openings increasing in wholesale trade and construction, but falling in educational services and state and local government education. Openings increased in the Midwest over the month.

Hires

The hires rate was 3.5%, with the number of hires decreased for total private and government. The decline was widespread and included health care and social assistance, educational services, transportation, warehousing, utilities, and state and local government. Hires dipped in professional and business services, accommodation and food services, state and local government, -- excluding education -- and federal government. Hires fell in the South.

Separations

Total separations includes quits, layoffs and discharges, and other separations, and is referred to as turnover. The total separations rate in January was 3.4%, falling for total private (-199,000) and government. Separations rose in information but fell in accommodation and food services and in state and local government, excluding education. Regionally, the number of total separations fell in the South.

Net change in employment

Over the 12 months ending in January 2016, hires totaled 61.7 million and separations totaled 59.0 million, yielding a net employment gain of 2.7 million. These totals include workers who may have been hired and separated more than once during the year.

The full report may be found on the BLS website

Jobless claims

A milestone for jobless claims was reached in March.

The Department of Labor (DOL) reports the number of people filing first-time applications for state jobless benefits rose by 7,000 in the week ending March 12 to a seasonally adjusted total of 265,000. The previous week's level was revised down by 1,000.

The initial claims level has now been below 300,000 for 54 straight weeks -- the longest streak since 1973.

The four-week moving average, which is less volatile than the weekly headcount and considered a more accurate barometer of the labor market, was up by 750 to 268,000.

The complete report is available on the DOL website.

Recent outbreaks of Salmonella, norovirus, and E. coli have plagued Chipotle Mexican Grill. Back in November, an E. coli outbreak in two states was linked back to the restaurant, a near-devastating blow to the chain’s reputation. Since then, senior members at the company have espoused confidence that they will be improving their food safety standards to make sure that all of its fresh, locally sourced ingredients are safe to eat.

Now, it seems that the company is backtracking a bit and revising some of the procedures that it had put in place. The Wall Street Journal reports that Chipotle will discontinue tests on its beef. Instead, they will have their beef cooked at a centralized location to kill off any rogue bacteria and ship it to restaurant locations in sealed bags.

When it reaches the restaurant, employees will remove the beef from these sealed containers and cook it on the grill, virtually eliminating the risk of it being contaminated by other food products. If effective, the chain may also adopt a similar practice with its chicken.

Customer reaction

While this change may seem practical, customers may be less than enthused by the policy change. If the new delivery system leads to the food tasting differently, consumers may show their dissatisfaction by taking their business elsewhere.

Although the food safety practices take primary importance for the company, it can’t discount how some of its policy changes will affect consumers. For example, in order to draw customers back in, Chipotle has started giving customers coupons and generous offers that amount to free food, a strategy that the Consumerist notes may train customers to expect great deals on a regular basis. Retracting these measures could result with consumer backlash in the future.