La Fed sobre las tasas de interés, la EEOC sobre DEI, las pequeñas empresas sobre IA

Hey everybody, it's Gene Marks and welcome to this week's episode of the Paychex THRIVE Week in Review. This is where we take a few items from the news of the past week and talk about how it impacts your business and mine. So, let's get right to it.

Last week, the Federal Reserve's Federal Open Market Committee met to discuss the economy and the potential rise in interest rates, whether or not they are going to adjust them. There's a press release in the Federal Reserve that happened on March 19, and here's what it said.

“Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated. However, the Open Market Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty around the economic outlook has increased. The committee is attentive to the risks to both sides of the dual mandate.”

What's the bottom line? The bottom line is this: The committee decided to maintain its latest target range for the federal funds rate at between 4.25 to 4.5 percent, which means no change in interest rates right now. The prime rate nationally is about7.5%. If you're getting 7.5% on your loans, good for you because that's for the prime customers.

Most of my clients are paying two or three points above that. And that's going to stay the same for the foreseeable future. We won't know until the Federal Open Market Committee meets again in the next few months. But for now, interest rates are the same and will continue the same. The good news is, is that although there is uncertainty in the future, the Fed is seeing solid economic prospects right now. So that is good for the remainder of the economy.

The next news comes from the Equal Employment Opportunity Commission, the EEOC. They have released revised guidelines – and this is in the National Law Review – and I wanted to read about it. It is just because it impacts us. The EEOC, as you know, and the Department of Justice have, you know, are refocusing on diversity, equity and inclusion policies in the workplace. There were three key takeaways that you need to know from this recent announcement from the EEOC.

Number one is that there could be potential unlawfulness of EEOC, of DEI practices at companies. This is both private, public, and government. So, you need to be careful of that. The guidance from the EEOC, and I'm reading this now from their report in the National Law Review, it emphasizes that “DEI initiatives may violate Title VII of the Civil Rights Act if they involve employment decisions based on race, sex, or other protected characteristics. This includes practices like quotas or balancing workforce composition based on these traits.”

So, you need to be aware that the EEOC is looking at that.

The EEOC also has a second takeaway. Specific DEI activities are under scrutiny like disparate treatment and hiring promotion or compensation or segregating or classifying employees based on protected characteristics. You need to be aware of that, as well, because if the EEOC sees that you are doing that on a certain group of employees regardless of their background, gender, religion, color, whatever, still could be subject to potential problems with the EEOC.

And finally, the EEOC wants to see employers equally apply Title VII protections. The EEOC says that it clarifies the Title VII protections. They apply universally and not solely to historically underrepresented groups. So, regardless again of gender, race, color, religion, the EEOC wants to see this universally and equally applied across all groups, Title VII protections.

So, the EEOC coming out with more guidance. This is a report that was in the National Law Review, who really broke it down and gave a great summary of that.

The third bit of news actually comes from Paychex. Paychex did a survey of small businesses about their adoption of AI, artificial intelligence. So, what are small business owners and HR leaders' thoughts on artificial intelligence, according to Paychex?

Well, they surveyed more than 1,100 small business owners and HR professionals, and here it is, by the way, this is the 2025 Paychex State of Small Business AI Report.

They found – the biggest find that Paychex found – is that the owners of small businesses for this survey those employers employing fewer than 500 people are optimistic with 72 % expressing a somewhat positive to a very positive attitude towards AI and 82 % viewing AI technology is helpful to their businesses.

Now, not every respondent said such praiseful things according to paychecks 18 % of the respondents viewed AI as a threat. However, of those 18 percent, a little bit more than one-quarter – 26% –saw it as a threat because they said they feared being outpaced by competitors who could leverage AI more effectively.

So, overwhelming majority of small business owners believe that AI is a good thing for their business. The only threat that they say is if their competitors start using it before they do.

And finally, just had to mention there's a little post on Twitter (X) by a named James Lucas. It's at @JamesLucasT, I think is his Twitter address. He posted a great picture, I just have to tell you. It was a 3,200-year-old attendance sheet that was found in Egypt recently. It was literally like this sheet of like a rock of attendance of employees at a company from 3,200 years old.

And do you wanna know why they were absent? Well, here are the reasons. One employee was brewing beer. Another employee was embalming his brother. Others were drinking with friends. And one employee was bitten by a scorpion.

Now, I'm not sure we're gonna see those same excuses nowadays for absent employees, but one takeaway from this 3,200-year-old attendance sheet, things really don't change for business owners, do they?

You've been watching and listening to this week's episode of the Paychex THRIVE Week in Review. My name is Gene Marks. If you'd like any advice or tips or help in running your business, visit us and sign up for our Paychex newsletter. Go to paychex.com/thrive.

I'll be back with you next week with some more news that impacts your business and mine and some thoughts about navigating that news. Thanks for taking the time. We'll see you again soon. Take care.

Do you have a topic or a guest you’d like to hear on THRIVE. Visit payx.me/thrivetopics and send us your ideas or matters of interest. Also, if your business is looking to simplify your HR, payroll, benefits or insurance services, see how Paychex can help. Visit the resource hub at paychex.com/worx. That’s W-O-R-X. Paychex can help manage those complexities while you focus on all the ways you want your business to thrive.

I'm your host, Gene Marks, and thanks for joining us.

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