WEBVTT - IVF Threatened by Unprecedented Alabama Decision

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<v Speaker 1>This is Bloomberg Law with June Grosso from Bloomberg Radio.

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<v Speaker 1>What I'm really concerned about though, is could we legally

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<v Speaker 1>retrieve our embryos.

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<v Speaker 2>There's mostly concern, there's worry, there's some anger.

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<v Speaker 3>This is Bloomberg Law with June Grosso from Bloomberg Radio.

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<v Speaker 2>What I'm really concerned about though, is could we legally

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<v Speaker 2>retrieve our embryos. There's mostly concern, there's worry, there's some

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<v Speaker 2>anger as patients and physicians want to be able to

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<v Speaker 2>make these decisions together, collaboratively and not have these decisions

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<v Speaker 2>made for us and without our input.

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<v Speaker 4>Doctors and IVF patients are caught up in a mixture

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<v Speaker 4>of emotions and a lot of confusion after the Alibamma

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<v Speaker 4>Supreme Court's unprecedented decision that frozen embryos are children. The

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<v Speaker 4>decision means doctors like Mamy MacLean could now face criminal

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<v Speaker 4>charges or punitive damages if they discard unused frozen embryos,

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<v Speaker 4>which is a normal part of the iv process.

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<v Speaker 2>This ruling is so incomplete, and it leaves those of

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<v Speaker 2>us who are sitting face to face with patients just

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<v Speaker 2>with the inability to comment on what is safe and

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<v Speaker 2>what is legal for them Right.

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<v Speaker 4>Now, Alabama's largest hospital and several fertility clinics are pausing

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<v Speaker 4>in vitro fertilization treatments because of legal concerns, and patients

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<v Speaker 4>like Matt Clary and his wife are in limbo. They'd

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<v Speaker 4>plan to go through another round of IVF this summer,

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<v Speaker 4>but are now unsure whether it will be available.

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<v Speaker 1>Nobody has the answers of how do you navigate this?

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<v Speaker 4>Joining me is healthcare attorney Harry Nelson of Nelson Hardiman Harry.

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<v Speaker 4>The Alabama Supreme Court is the first court to rule

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<v Speaker 4>so that frozen embryos are children, citing anti abortion language

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<v Speaker 4>in Alabama's constitution. But the facts of this case are

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<v Speaker 4>rather odd.

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<v Speaker 5>It appears that this decision was the result of a

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<v Speaker 5>very calculated case. The case involved two families who had

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<v Speaker 5>had children through a fertility center and had additional embryos

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<v Speaker 5>stored at the center. Those embryos were destroyed in a

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<v Speaker 5>bizarre incident where another patient apparently walked into an unauthorized area,

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<v Speaker 5>opened a freezer, pulled out the storage container with the embryos.

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<v Speaker 5>The suffered immediate freezer burn and dropped the container, resulting

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<v Speaker 5>in the destruction, and so it doesn't seem obvious at

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<v Speaker 5>least to me that the natural response of someone who

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<v Speaker 5>had hoped to use an embryo for a future in

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<v Speaker 5>vitro fertilization would be, you know, to sue for wrongful

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<v Speaker 5>death of a minor. Right, yea, certainly people would be aggrieved.

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<v Speaker 5>But it certainly seems there's a calculated decision to bring

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<v Speaker 5>a case under this law. Law and challenged the destruction

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<v Speaker 5>to use this incident to test whether the loss of

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<v Speaker 5>an embryo in this manner could somehow be considered the

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<v Speaker 5>same as the death of a child. So that was

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<v Speaker 5>the legal theory they went forward on, and they lost

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<v Speaker 5>in the lower court, And then the Alabama Supreme Court

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<v Speaker 5>surprised most people by agreeing with the theory that the

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<v Speaker 5>parent who lost these embryos alleged, or that their lawyer's alleged,

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<v Speaker 5>which was that the accidental destruction of the embryos in

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<v Speaker 5>an embryo lab, I mean, a fertility center was the

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<v Speaker 5>legal equivalent of killing their children, that an embryo being

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<v Speaker 5>stored in this lab a fertilized embryo, which, according to

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<v Speaker 5>the testimony, was an equivalent of a few days old

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<v Speaker 5>into the pregnancy process, but less than a week that

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<v Speaker 5>that was the same as a fully born child who

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<v Speaker 5>had been killed. You know, it's an extreme position and

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<v Speaker 5>it raises all kinds of troubling implications for anybody who

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<v Speaker 5>is involved at all in the process of extracting, storing,

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<v Speaker 5>implanting embryos, handling them in any way. The simple meaning

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<v Speaker 5>of this case is that you are potentially, if anything

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<v Speaker 5>happens to these embryos, you are effectively committing the equivalent

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<v Speaker 5>of a homicide or a manslaughter of a child.

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<v Speaker 4>The common practice with a patient undergoing IVF, multiple embryos

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<v Speaker 4>are created right so that the patient can try again

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<v Speaker 4>if an attempt at pregnancy fail. So what kind of

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<v Speaker 4>problem does a decision like this create, right?

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<v Speaker 5>You know, it's a difficult procedure in which there's no

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<v Speaker 5>certainty that a single embryo will implant. In fact, if

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<v Speaker 5>you go back just twenty years ago, prior to the

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<v Speaker 5>octomom case, it was common practice for many fertility doctors

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<v Speaker 5>to implant the significantly larger numbers of embryos to see

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<v Speaker 5>which ones would succeed. And it's still a common practice

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<v Speaker 5>to implant smaller numbers of multiple embryos, which is one

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<v Speaker 5>of the reasons we see a lot more twins resulting

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<v Speaker 5>from IVF. The problem now is that, based on the case,

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<v Speaker 5>the handling of those embryos is effectively the handling of

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<v Speaker 5>live children. I don't know, between the age of one

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<v Speaker 5>day old newborn to seventeen year olds. Those embryos have

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<v Speaker 5>the same legal status as those children. And these are

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<v Speaker 5>embryos that are in the hands of labs, doctors, hospitals,

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<v Speaker 5>surgery centers, and really a world of new questions of

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<v Speaker 5>what their responsibilities are, Like what happens if the power

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<v Speaker 5>goes off and there's a destruction that way, What happens

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<v Speaker 5>if they aren't used and they're simply sitting there is

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<v Speaker 5>there any consequence if they're no longer usable, What happens

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<v Speaker 5>if there's a dispute between the parents? What is their status?

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<v Speaker 5>They are no longer property, they are live right. So

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<v Speaker 5>this is a radical new legal world that we've entered

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<v Speaker 5>with this decision.

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<v Speaker 4>Usually the parents have the right to decide what happens

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<v Speaker 4>to embryos that are not used.

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<v Speaker 5>Correct until now and in every other state, embryos are

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<v Speaker 5>effectively property. The parents have full discretion over what to

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<v Speaker 5>do with them. Parents can decide if they don't want

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<v Speaker 5>to pursue further privs, and there were remaining embryos, they

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<v Speaker 5>could simply demand that they be destroyed, and they would

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<v Speaker 5>be destroyed like any other kind of tissue in a lab, right,

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<v Speaker 5>And it's not that they would have hero value, but

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<v Speaker 5>they would not have the value accorded under Alabama law

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<v Speaker 5>to a life, and they would not be facing the

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<v Speaker 5>dire consequences of having essentially taken a life by the

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<v Speaker 5>negligence of allowing a patient a third party to get

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<v Speaker 5>into the facility. So all kinds of really scary implications

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<v Speaker 5>about what this new status means.

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<v Speaker 4>Also, can you do genetic testing on embryos?

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<v Speaker 5>Then the question of whether you can do genetic testing

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<v Speaker 5>or what you can do to these embryos short of

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<v Speaker 5>destroying them is a really interesting question. There's nothing in

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<v Speaker 5>this decision that suggests that you couldn't do genetic testing. However,

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<v Speaker 5>any time that you have any kind of contact with,

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<v Speaker 5>you know, embryonic tissue, you are effectively potentially taking a risk. Right,

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<v Speaker 5>there is a risk that the extraction, even though it's

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<v Speaker 5>often done safely. I think doctor's rul routinely tell patients,

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<v Speaker 5>there is a chance that this will result in destruction.

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<v Speaker 5>So I think genetic testing just became in this context,

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<v Speaker 5>became basically off limits in Alabama because it could result

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<v Speaker 5>in the destruction of a tissue and therefore essentially a killing.

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<v Speaker 4>And this is a decision where the court hands down

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<v Speaker 4>this radical decision and then just says, Okay, we're done,

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<v Speaker 4>and the implications are left to I don't know, the

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<v Speaker 4>medical profession, patience, the legislature who.

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<v Speaker 5>Decides yeah, it's you know, this decision in many ways

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<v Speaker 5>reminds me it sort of parallels the DA decision itself,

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<v Speaker 5>which revealed Roe v. Wade in the sense that the

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<v Speaker 5>Supreme Court said, we'reishing this proclamation that rowan too far,

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<v Speaker 5>and we're kicking it back to the states to this

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<v Speaker 5>and there was this almost like assumption that the problem

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<v Speaker 5>would just sort itself out at the state level, and

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<v Speaker 5>in fact, we've gotten a result of national chaos over

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<v Speaker 5>the last nearly two years. And this decision does exactly

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<v Speaker 5>the same thing in this smaller context of IVF and

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<v Speaker 5>Alabama and embryos, because it's created a world of chaos

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<v Speaker 5>where all these different actors parents who are considering IVF

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<v Speaker 5>and fertility treatment, fertility doctors, hospitals, health systems, medical school

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<v Speaker 5>training programs, storage companies. Everybody's got to make these new decisions,

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<v Speaker 5>and there will certainly be new regulations, but there's a

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<v Speaker 5>lot of personal decisions just to sort of avoid this

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<v Speaker 5>whole uncertain, chaotic environment in favor of going to states

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<v Speaker 5>where this is totally uncontroversial territory, Harry.

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<v Speaker 4>Some doctors are saying that patients because of this could

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<v Speaker 4>have to endure longer and more costly treatments to try

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<v Speaker 4>to achieve a pregnancy if they're only allowed to create

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<v Speaker 4>one embryo per cycle, and one cycle of IVF now

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<v Speaker 4>calls about fifteen to twenty five thousand dollars. Tell us

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<v Speaker 4>a little about the process.

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<v Speaker 5>The process, if you speak to any woman who's had it,

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<v Speaker 5>or couples that have gone through it, is it's quite

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<v Speaker 5>an intensive process to prepare for it, for the extraction

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<v Speaker 5>of the eggs, and then essentially the fertilization of the

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<v Speaker 5>sperm and egg happened in the lab, and then once

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<v Speaker 5>there's confirmed fertilization and just a little bit of growth

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<v Speaker 5>of the embryo, it is then implanted. And you know,

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<v Speaker 5>there's a question of whether the women's uterusm will accept

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<v Speaker 5>the tissue and whether it will attach appropriately, and then

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<v Speaker 5>there continue to be questions and a risk of unsuccessful

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<v Speaker 5>implantation or miscarriage is a very significant risk. This is

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<v Speaker 5>an amazing miracle of reproductive health technology that's a dance fertility,

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<v Speaker 5>and in recent decades that's made this a possibility. But

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<v Speaker 5>I'd personally know multiple couples that have had to go

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<v Speaker 5>through round after round of this procedure, and that was

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<v Speaker 5>with implanting multiple embryos just to get to success full pregnancy.

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<v Speaker 5>And so basically this has eliminated the possibility of more

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<v Speaker 5>than one embryo being implanted, and it means that the

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<v Speaker 5>odds of each treatment of each IVF attempt are now reduced.

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<v Speaker 5>If you do it in Alabama, where you certainly can't

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<v Speaker 5>do more than one embryo, and it's become higher risk.

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<v Speaker 5>I suppose most fertility doctors would probably do two and

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<v Speaker 5>allow for the possibility of twins if that's acceptable to

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<v Speaker 5>the mother. But you're really still really narrowing the chances

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<v Speaker 5>of a successful implantation and a successful pregnancy delivered to terms.

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<v Speaker 5>So it's very likely that women will have to do

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<v Speaker 5>this more. And that also is compounded by the fact that,

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<v Speaker 5>in addition to being difficult and emotionally stressful, it's extremely

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<v Speaker 5>expensive and very few people have the resources to repeat

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<v Speaker 5>this process over and over again without significant financial backing.

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<v Speaker 4>As we said, the ruling is only valid in Alabama,

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<v Speaker 4>but at least eleven states have broadly defined personhood is

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<v Speaker 4>beginning at fertilization in their state laws. So can we

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<v Speaker 4>expect the anti abortion movement to start pushing decisions like

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<v Speaker 4>this in other states?

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<v Speaker 1>Yeah?

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<v Speaker 5>Absolutely. I think that the logic of the decision here

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<v Speaker 5>is something that the right to life movement is supportive of,

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<v Speaker 5>which is sort of treating embryos with more sanctity in

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<v Speaker 5>all of these states and eliminating practices that have bothered

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<v Speaker 5>them for a long time. Right, Like I said, we

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<v Speaker 5>already in the last fifteen years, certain practices in fertility

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<v Speaker 5>have already gone away under pressure, including the practice of

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<v Speaker 5>implanting multiple embryos and then doing a reduction to remove

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<v Speaker 5>embryos to get to the right number. It would not

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<v Speaker 5>be surprising to be the law in all of these states,

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<v Speaker 5>and it is a logical implication of saying that life

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<v Speaker 5>begins at conception. I mean it would require some different

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<v Speaker 5>articulation that would potentially devalue what's occurring at conception or

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<v Speaker 5>immediately after to say otherwise. So I think this position

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<v Speaker 5>is going to be supported by the pro life community,

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<v Speaker 5>and I think the rest of us are going to

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<v Speaker 5>have to figure out how to deal with it.

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<v Speaker 4>Would you say this is a new chapter in the

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<v Speaker 4>continuing fight over women's reproductive rights.

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<v Speaker 5>Yeah, I do think this is in the sense of

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<v Speaker 5>new chapter. I don't think people should be surprised, right,

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<v Speaker 5>I think that we've seen the implications already pose the

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<v Speaker 5>repeal of Roe v. Wade with regard to not just abortion,

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<v Speaker 5>but with regards to miscarriage treatment and seeing it extended

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<v Speaker 5>into fertility. This is something that was absolutely predicted right

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<v Speaker 5>after the repeal, not surprising. People should not be surprised

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<v Speaker 5>to see contraception be the next battlefield. And these questions

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<v Speaker 5>all are really going to push at what most of

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<v Speaker 5>us have accepted as the traditional you know, right round reproduction,

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<v Speaker 5>reproductive health access that women had, and that all of

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<v Speaker 5>us that none of it should surprise anybody who was

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<v Speaker 5>thinking through the implications when this repeal happened, and there

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<v Speaker 5>were sure to.

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<v Speaker 4>Be more ripple effects of the Supreme Court overturning Row.

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<v Speaker 4>Thanks so much, Harry. That's Harry Nelson of Nelson Hardiman.

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<v Speaker 4>I'm June Grasso, and you're listening to Bloomberg Day. Between

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<v Speaker 4>now and November, the American people are going to know

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<v Speaker 4>that the only reason the border is not secure is

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<v Speaker 4>Donald Trump and as maga Republican friends. And it seems

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<v Speaker 4>like President Joe Biden is trying to keep that promise

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<v Speaker 4>of showing up Trump and Republicans who killed the biparties

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<v Speaker 4>in border deal by making some changes of his own.

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<v Speaker 4>The Biden administration is considering taking unilateral executive action using

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<v Speaker 4>provisions of federal immigration law repeatedly tapped by former President

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<v Speaker 4>Donald Trump, to enact a crackdown at the southern border.

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<v Speaker 4>According to Bloomberg's sources, the administration has been exploring options

0:13:38.840 --> 0:13:42.640
<v Speaker 4>that Biden could deploy on his own without congressional approval,

0:13:43.040 --> 0:13:45.960
<v Speaker 4>but it's far from clear that the measures could withstand

0:13:46.160 --> 0:13:49.800
<v Speaker 4>almost certain court challenges. Here to tell us about them

0:13:49.960 --> 0:13:52.960
<v Speaker 4>is Leon Fresco, a partner at Holland and Knight. He

0:13:53.080 --> 0:13:55.440
<v Speaker 4>was the former head of the Office of Civil Immigration

0:13:55.600 --> 0:13:59.040
<v Speaker 4>Litigation in the Obama administration. So Leon tell us what

0:13:59.200 --> 0:14:00.880
<v Speaker 4>measures Biden is considering.

0:14:01.280 --> 0:14:04.800
<v Speaker 1>President Biden is considering a number of options, which some

0:14:04.880 --> 0:14:07.280
<v Speaker 1>of them have been tried in the past and some

0:14:07.480 --> 0:14:11.319
<v Speaker 1>have been rejected in the past because of questions about

0:14:11.320 --> 0:14:13.719
<v Speaker 1>their legality. But let me take you through them. So

0:14:14.400 --> 0:14:18.840
<v Speaker 1>the most important in terms of impact would be trying

0:14:18.880 --> 0:14:22.360
<v Speaker 1>to take what is normally known as the travel ban statues,

0:14:22.800 --> 0:14:27.520
<v Speaker 1>which is INA Section to twelve F, and actually saying

0:14:27.560 --> 0:14:32.280
<v Speaker 1>that it can be used to remove people whose bodies

0:14:32.320 --> 0:14:35.800
<v Speaker 1>have already entered the United States without letting them apply

0:14:35.920 --> 0:14:39.600
<v Speaker 1>for asylum. Trump tried this, and the reason it didn't

0:14:39.640 --> 0:14:44.000
<v Speaker 1>work is because the two twelve F travel ban statues

0:14:44.320 --> 0:14:48.240
<v Speaker 1>uses this very interesting word in the immigration law, entry

0:14:48.560 --> 0:14:52.880
<v Speaker 1>into the United States. But the problem is, under millions

0:14:52.880 --> 0:14:55.720
<v Speaker 1>of cases that exist in immigration law, and you know,

0:14:55.720 --> 0:14:58.000
<v Speaker 1>all the way up to the Supreme Court, this word

0:14:58.280 --> 0:15:03.560
<v Speaker 1>entry means preventing the actual body from answering the United States.

0:15:03.680 --> 0:15:07.560
<v Speaker 1>But once you've entered, then what's needed is a deportation.

0:15:08.400 --> 0:15:12.600
<v Speaker 1>And so what the travel band statue prevents is an entry.

0:15:12.680 --> 0:15:15.320
<v Speaker 1>But the entry here has already occurred, and so the

0:15:15.400 --> 0:15:18.960
<v Speaker 1>question is, can you use this travel band statute deport

0:15:19.040 --> 0:15:24.440
<v Speaker 1>someone without going through the normal deportation process, and that's

0:15:24.440 --> 0:15:26.600
<v Speaker 1>going to be ultimately a question for the courts. But

0:15:26.680 --> 0:15:30.440
<v Speaker 1>most likely is that's not going to be allowed because

0:15:30.480 --> 0:15:34.040
<v Speaker 1>that wasn't allowed under the Trump administration. Even though that

0:15:34.120 --> 0:15:36.960
<v Speaker 1>specific question didn't work its way all the way up

0:15:37.000 --> 0:15:39.480
<v Speaker 1>to the Supreme Court. That is one of the things

0:15:39.520 --> 0:15:42.160
<v Speaker 1>that they're discussing. The question is how likely it will

0:15:42.200 --> 0:15:44.040
<v Speaker 1>be to succeed. It Just that's number one.

0:15:44.120 --> 0:15:46.080
<v Speaker 4>Let me just stop you a minute. So in that

0:15:46.240 --> 0:15:51.480
<v Speaker 4>case they would take migrants to enter the country and immediately.

0:15:50.920 --> 0:15:54.840
<v Speaker 1>Deport them right Their argument would be employing I Ina

0:15:54.960 --> 0:15:58.520
<v Speaker 1>too twelve f the ban on entry statutes to say

0:15:58.560 --> 0:16:01.440
<v Speaker 1>that even though you've entered, we're not gonna let you

0:16:01.640 --> 0:16:06.760
<v Speaker 1>answer because you've entered illegally. Entry means legal entry, and

0:16:06.840 --> 0:16:10.320
<v Speaker 1>so we're banning any kind of illegal entry. And so

0:16:10.440 --> 0:16:12.200
<v Speaker 1>once we find you, we're allowed to kick you out

0:16:12.200 --> 0:16:15.440
<v Speaker 1>without getting asylum, without any due process of any kind.

0:16:15.640 --> 0:16:19.800
<v Speaker 1>Any look to see about asylum or any trafficking or

0:16:19.840 --> 0:16:22.480
<v Speaker 1>anything else. That's not going to be our concern. We're

0:16:22.520 --> 0:16:25.320
<v Speaker 1>just gonna take you and move you right back into

0:16:25.360 --> 0:16:28.360
<v Speaker 1>Mexico without any of that. And so the question will

0:16:28.360 --> 0:16:32.360
<v Speaker 1>be does this ability that decides you give to prevent

0:16:32.560 --> 0:16:36.880
<v Speaker 1>an entry work after an entry has already been made

0:16:37.280 --> 0:16:41.040
<v Speaker 1>in a case where the entry made was illegal, And

0:16:41.080 --> 0:16:43.000
<v Speaker 1>so that's gonna be the question that a court will

0:16:43.000 --> 0:16:44.000
<v Speaker 1>have to determine.

0:16:44.520 --> 0:16:48.040
<v Speaker 4>I'm sure that that definition of entry doesn't meet the

0:16:48.240 --> 0:16:53.120
<v Speaker 4>Merriam Webster Dictionary definition, but legal interpretation is another thing.

0:16:53.440 --> 0:16:56.600
<v Speaker 4>But it sounds like that wouldn't pass legal scrutiny when

0:16:56.600 --> 0:16:58.680
<v Speaker 4>it's challenged, which it surely will be.

0:16:59.040 --> 0:17:02.240
<v Speaker 1>It may also be that the Biden administration doesn't care

0:17:02.280 --> 0:17:04.640
<v Speaker 1>if that gets a join because at least from their

0:17:04.680 --> 0:17:07.720
<v Speaker 1>per sective, they can say, look, we tried. Do you

0:17:07.840 --> 0:17:11.520
<v Speaker 1>now see that this takes Congress, Congress down back to you.

0:17:12.160 --> 0:17:15.800
<v Speaker 4>The Biden administration is also discussing ways to make it

0:17:15.880 --> 0:17:20.200
<v Speaker 4>harder for migrants to pass the initial screening for asylum seekers,

0:17:20.880 --> 0:17:23.680
<v Speaker 4>essentially raising the standard tell us about that.

0:17:24.280 --> 0:17:27.520
<v Speaker 1>The standard right now is called credible fear, And what

0:17:27.680 --> 0:17:29.600
<v Speaker 1>that says under the law is do you have a

0:17:29.640 --> 0:17:36.560
<v Speaker 1>significant possibility of having an asylum case that's plausible? And

0:17:36.880 --> 0:17:40.240
<v Speaker 1>the issue is that there is some dicta in the court.

0:17:40.480 --> 0:17:43.399
<v Speaker 1>This is not binding law, but it's pretty strong dicta

0:17:43.520 --> 0:17:46.360
<v Speaker 1>that even for an asylum case, you have to show

0:17:46.400 --> 0:17:49.320
<v Speaker 1>that you have a ten percent chance of being persecuted

0:17:49.359 --> 0:17:52.880
<v Speaker 1>in your home country. So this credible fear standard is

0:17:52.960 --> 0:17:56.080
<v Speaker 1>do you have a significant possibility of having a ten

0:17:56.119 --> 0:18:00.360
<v Speaker 1>percent chance? And so if a pretty lenient standard, and

0:18:00.440 --> 0:18:03.439
<v Speaker 1>so what that means is a lot of people qualified.

0:18:03.480 --> 0:18:07.720
<v Speaker 1>Now if you raise the standard, many people believe Congress

0:18:07.760 --> 0:18:10.080
<v Speaker 1>is the one that needs to do that, because every

0:18:10.080 --> 0:18:13.440
<v Speaker 1>single time that the government has tried to raise the standard,

0:18:13.880 --> 0:18:16.560
<v Speaker 1>whether they do it on paper or whether they do

0:18:16.640 --> 0:18:18.960
<v Speaker 1>it verbally, they kind of give a hint in so

0:18:19.119 --> 0:18:22.240
<v Speaker 1>the agents look start finding ways to deny these claims.

0:18:22.680 --> 0:18:26.080
<v Speaker 1>The advocates figure it out, they sue, and they enjoy

0:18:26.640 --> 0:18:29.840
<v Speaker 1>whatever new move was done, because the law is actually

0:18:29.840 --> 0:18:34.320
<v Speaker 1>pretty firm that it's this specific credible fear standard that

0:18:34.400 --> 0:18:37.439
<v Speaker 1>must be applied at the moment until such time as

0:18:37.520 --> 0:18:38.520
<v Speaker 1>Congress changes it.

0:18:38.920 --> 0:18:42.359
<v Speaker 4>All right, that makes two that seem unlikely to withstand

0:18:42.440 --> 0:18:45.000
<v Speaker 4>court challenges. What else are they discussing?

0:18:45.440 --> 0:18:48.320
<v Speaker 1>So then the next few possibilities are these sort of

0:18:48.920 --> 0:18:53.080
<v Speaker 1>more acnee tried and truth. Always they try to do

0:18:53.119 --> 0:18:56.639
<v Speaker 1>this and they never work. Resolutions like for instance, moving

0:18:56.720 --> 0:19:00.920
<v Speaker 1>to a last in, first out processing to them, which

0:19:00.960 --> 0:19:04.080
<v Speaker 1>what they say is, okay, let's just clear the decks

0:19:04.760 --> 0:19:08.760
<v Speaker 1>of the millions of cases that we have for deportation,

0:19:08.880 --> 0:19:12.440
<v Speaker 1>which is making things take many months. Let's just immediately

0:19:12.480 --> 0:19:16.280
<v Speaker 1>put someone who comes tomorrow into the court so that way,

0:19:16.359 --> 0:19:20.159
<v Speaker 1>at least these new cases are moving quickly and we

0:19:20.359 --> 0:19:24.040
<v Speaker 1>can get them process. But what happens is that never

0:19:24.160 --> 0:19:27.320
<v Speaker 1>works because the person then says, I haven't found the

0:19:27.400 --> 0:19:30.320
<v Speaker 1>lawyer yet, and there's case law about getting people a

0:19:30.440 --> 0:19:33.119
<v Speaker 1>chance to find the lawyer, and so you have to

0:19:33.119 --> 0:19:35.880
<v Speaker 1>give them several weeks to do that. And then once

0:19:35.920 --> 0:19:39.720
<v Speaker 1>you've done that, then you've already moved from this urgent

0:19:40.119 --> 0:19:44.160
<v Speaker 1>processing point and we're back to square one again. So

0:19:44.480 --> 0:19:47.680
<v Speaker 1>that issue of can we clear the decks and move

0:19:47.760 --> 0:19:52.359
<v Speaker 1>cases quickly has unfortunately, And let's we're going to start

0:19:52.400 --> 0:19:56.480
<v Speaker 1>assigning people lawyers so that then they have to make

0:19:56.520 --> 0:19:59.240
<v Speaker 1>their asylum case on the spot. That would be a

0:19:59.280 --> 0:20:03.080
<v Speaker 1>way you could people through the court quickly, But I

0:20:03.119 --> 0:20:06.280
<v Speaker 1>don't think Congress has given enough funding to make that

0:20:06.320 --> 0:20:10.440
<v Speaker 1>succeed at any grand scale, And I think people would

0:20:10.480 --> 0:20:13.760
<v Speaker 1>be against that on the conservative side because they would say,

0:20:13.760 --> 0:20:17.320
<v Speaker 1>why are you getting free lawyers to the foreign nationals

0:20:17.320 --> 0:20:20.359
<v Speaker 1>coming illegally. But the problem is is if you don't

0:20:20.400 --> 0:20:22.480
<v Speaker 1>do that, there's all the Staate well that says you

0:20:22.560 --> 0:20:25.639
<v Speaker 1>have to give people a reasonable tine period to find

0:20:25.680 --> 0:20:29.199
<v Speaker 1>a lawyer, which then subverts this ability to have a

0:20:29.320 --> 0:20:30.680
<v Speaker 1>rocket docket essentially.

0:20:31.160 --> 0:20:34.159
<v Speaker 4>And they're also considering detaining more people.

0:20:34.680 --> 0:20:37.679
<v Speaker 1>The problem is they are one, you need additional congressional

0:20:37.720 --> 0:20:40.399
<v Speaker 1>funding to do it, which ICE is now saying they

0:20:40.400 --> 0:20:43.480
<v Speaker 1>actually can have lesson to be able to detain people.

0:20:43.520 --> 0:20:46.240
<v Speaker 1>And number two, you can't detain anyone where there's a

0:20:46.320 --> 0:20:50.240
<v Speaker 1>kid involved, so you couldn't detain families coming together, and

0:20:50.320 --> 0:20:54.119
<v Speaker 1>you can't detain children at all, and so you would

0:20:54.119 --> 0:20:57.480
<v Speaker 1>just be detaining single adults, which the government is already

0:20:57.520 --> 0:21:01.120
<v Speaker 1>doing at the capacity they're doing. The problem is many

0:21:01.160 --> 0:21:06.440
<v Speaker 1>many more people coming than the detention spaces that exists.

0:21:06.760 --> 0:21:10.000
<v Speaker 1>You know, maybe you can start using military bases and

0:21:10.080 --> 0:21:13.199
<v Speaker 1>other things of this nature and not what can be done,

0:21:13.320 --> 0:21:16.560
<v Speaker 1>but it's gonna need more funding to convince people you

0:21:16.640 --> 0:21:18.720
<v Speaker 1>really are serious about detaining people.

0:21:19.320 --> 0:21:23.440
<v Speaker 4>Does Biden have the resources for any of these plans

0:21:23.480 --> 0:21:25.680
<v Speaker 4>to be implemented, so.

0:21:25.760 --> 0:21:28.320
<v Speaker 1>For the ban, he certainly does. The the band doesn't

0:21:28.400 --> 0:21:31.399
<v Speaker 1>cost anything. The question is will the court uphold the

0:21:31.440 --> 0:21:37.920
<v Speaker 1>ban for the increased detention. He's gonna need additional funding

0:21:38.520 --> 0:21:42.159
<v Speaker 1>from Congress for things like, you know, food for the

0:21:42.200 --> 0:21:45.920
<v Speaker 1>people that are being detained, housing, transportations to move them

0:21:45.960 --> 0:21:49.479
<v Speaker 1>to these detention facilities, things of nature. So all of

0:21:49.480 --> 0:21:52.480
<v Speaker 1>that will be needed. The question is will Congress give

0:21:52.520 --> 0:21:55.440
<v Speaker 1>them that funding or what the Biden administration could do

0:21:55.600 --> 0:22:00.560
<v Speaker 1>theoretically is divert resources from other Department of Homeland Security

0:22:00.600 --> 0:22:03.800
<v Speaker 1>priorities to this. But the question is how much money

0:22:03.920 --> 0:22:06.439
<v Speaker 1>is they're really in the budget to divert to this

0:22:06.560 --> 0:22:09.120
<v Speaker 1>that's not being used for something useful. I mean, surely

0:22:09.400 --> 0:22:11.560
<v Speaker 1>there will be some programs you can divert to this,

0:22:12.040 --> 0:22:14.879
<v Speaker 1>but I don't know in terms of the billions that

0:22:14.920 --> 0:22:18.680
<v Speaker 1>will be needed that they're billions left diverts. So that's

0:22:18.720 --> 0:22:21.160
<v Speaker 1>why you would think the Congress would need to pass

0:22:21.200 --> 0:22:21.840
<v Speaker 1>the funds for that.

0:22:22.400 --> 0:22:25.919
<v Speaker 4>It sounds like all of these plans might have a

0:22:26.000 --> 0:22:28.520
<v Speaker 4>problem in the courts, correct.

0:22:28.160 --> 0:22:31.000
<v Speaker 1>And I think that's where the question ultimately comes down to.

0:22:31.720 --> 0:22:37.000
<v Speaker 1>Is the Biden administration proposing these changes to simply have

0:22:37.160 --> 0:22:40.280
<v Speaker 1>them lose because it knows that they will lose, but

0:22:40.280 --> 0:22:42.600
<v Speaker 1>at least they can say, look, we tried, and now

0:22:42.720 --> 0:22:46.359
<v Speaker 1>isn't it obvious that Congress needs sacked. That's one option

0:22:47.119 --> 0:22:51.280
<v Speaker 1>or option two. Aren't doing it to just say they

0:22:51.280 --> 0:22:53.040
<v Speaker 1>did something at the end of the day. I mean,

0:22:53.359 --> 0:22:57.080
<v Speaker 1>that's ultimately the question. It's not clear what the goal is.

0:22:57.119 --> 0:23:00.560
<v Speaker 1>But if the goal is that they thing that there's

0:23:00.560 --> 0:23:03.679
<v Speaker 1>something they can do at a moment that doesn't have

0:23:03.720 --> 0:23:08.760
<v Speaker 1>some Congressional assistance, that's going to completely stem the tide

0:23:08.800 --> 0:23:11.240
<v Speaker 1>of what's happening at the border. It's going to be very,

0:23:11.320 --> 0:23:14.480
<v Speaker 1>very difficult to accomplish because they're going to need at

0:23:14.560 --> 0:23:17.400
<v Speaker 1>least assistance from the court. Maybe they don't need assistance

0:23:17.440 --> 0:23:19.840
<v Speaker 1>from Congress, but they're going to at least need assistant

0:23:19.880 --> 0:23:22.000
<v Speaker 1>from the courts to do something that the courts have

0:23:22.119 --> 0:23:23.200
<v Speaker 1>never permitted before.

0:23:23.880 --> 0:23:27.399
<v Speaker 4>So a Bloomberg News Morning Console poll last month found

0:23:27.440 --> 0:23:31.320
<v Speaker 4>that six and ten swing state voters say Biden bears

0:23:31.320 --> 0:23:34.320
<v Speaker 4>at least some of the responsibility for a surgeon migrants.

0:23:34.520 --> 0:23:36.960
<v Speaker 4>The border and migrants are going to be a prominent

0:23:37.000 --> 0:23:40.240
<v Speaker 4>issue in the twenty twenty four elections, and you know,

0:23:40.240 --> 0:23:45.600
<v Speaker 4>we've seen Democratic mayors and governors and some lawmakers asking

0:23:45.640 --> 0:23:48.760
<v Speaker 4>Biden to do something about the migrant crisis. Do you

0:23:48.840 --> 0:23:53.720
<v Speaker 4>think that will outweigh what we expect maybe outrage from

0:23:54.000 --> 0:23:56.919
<v Speaker 4>you know, the far left and from immigration advocates.

0:23:57.359 --> 0:24:01.760
<v Speaker 1>I think it will pay during the spring how intense

0:24:01.880 --> 0:24:05.680
<v Speaker 1>the crossings are. If the crossings are at the three

0:24:05.800 --> 0:24:09.440
<v Speaker 1>million per year rates that we've been seeing very recently,

0:24:09.880 --> 0:24:12.000
<v Speaker 1>it's going to be very difficult the impact that this

0:24:12.119 --> 0:24:14.840
<v Speaker 1>is going to have on cities. And this is where

0:24:14.880 --> 0:24:18.000
<v Speaker 1>I think the Biden administration would at least do itself

0:24:18.320 --> 0:24:21.320
<v Speaker 1>some good in terms of trying to go to the

0:24:21.359 --> 0:24:23.720
<v Speaker 1>Congress and say, look, if we're going to do something,

0:24:24.040 --> 0:24:26.639
<v Speaker 1>we need to at least have detention. You need to

0:24:26.680 --> 0:24:30.240
<v Speaker 1>at least give us the money to do one specific

0:24:30.320 --> 0:24:34.840
<v Speaker 1>thing which has detained single adults who don't have anywhere

0:24:34.840 --> 0:24:37.440
<v Speaker 1>to go and are dependent on cities to house. That

0:24:37.680 --> 0:24:40.359
<v Speaker 1>probably needs stand as soon as possible. Now, do they

0:24:40.400 --> 0:24:42.960
<v Speaker 1>need more money to do that? Probably? I don't think

0:24:42.960 --> 0:24:45.159
<v Speaker 1>there's the money now in the budget to do this

0:24:45.320 --> 0:24:48.800
<v Speaker 1>on a massive scale. But I do think if Republicans

0:24:48.840 --> 0:24:51.560
<v Speaker 1>were to reject that, or if Democrats or whoever were

0:24:51.600 --> 0:24:54.160
<v Speaker 1>to reject that, then that would look like a very

0:24:54.200 --> 0:24:56.719
<v Speaker 1>bad faith effort. I mean, you could talk about all

0:24:56.760 --> 0:24:58.840
<v Speaker 1>these changes in the law that some people liked or

0:24:58.920 --> 0:25:01.960
<v Speaker 1>didn't like or whatever. But if the issue is just, hey,

0:25:02.400 --> 0:25:04.920
<v Speaker 1>what do you want us to do with people? If

0:25:04.960 --> 0:25:09.040
<v Speaker 1>it's not to detain them while their cases processing, you

0:25:09.160 --> 0:25:11.560
<v Speaker 1>tell us what you want us to do. And so

0:25:11.720 --> 0:25:13.639
<v Speaker 1>that's the case. Now you can say, well, what I

0:25:13.680 --> 0:25:16.679
<v Speaker 1>want you to do is do remain in Mexico. But

0:25:16.880 --> 0:25:20.720
<v Speaker 1>the problem is there that infrastructure, you know, to the

0:25:20.760 --> 0:25:23.120
<v Speaker 1>extent that people want to blame Joe Biden for something,

0:25:23.600 --> 0:25:27.240
<v Speaker 1>was torn down completely at the beginning of the Biden administration,

0:25:27.720 --> 0:25:31.480
<v Speaker 1>and then Mexico took legal measures to make it impossible

0:25:31.520 --> 0:25:34.960
<v Speaker 1>in Mexico for that to ever be done again, meaning

0:25:35.000 --> 0:25:38.920
<v Speaker 1>Mexico had acquiesced. Now there's Supreme Court decisions in Mexico

0:25:39.000 --> 0:25:42.679
<v Speaker 1>that prohibits this, and there's laws in Mexico that prohibits this.

0:25:43.080 --> 0:25:46.520
<v Speaker 1>And so what what needs to happen is that whole

0:25:46.600 --> 0:25:49.320
<v Speaker 1>process that started under the Trump administration we need to

0:25:49.359 --> 0:25:53.639
<v Speaker 1>be restarted where Mexico is threatened again. Hey, your days

0:25:53.640 --> 0:25:56.240
<v Speaker 1>of building cars in Mexico are over. We're going to

0:25:56.280 --> 0:25:58.880
<v Speaker 1>give it a fifty percent tire off if you don't

0:25:58.920 --> 0:26:01.960
<v Speaker 1>help us with remain in Mexico, and then Mexico would

0:26:01.960 --> 0:26:05.360
<v Speaker 1>have to change all its laws again and go back

0:26:05.400 --> 0:26:07.680
<v Speaker 1>to the Supreme Courn and figure out the way where

0:26:07.680 --> 0:26:10.480
<v Speaker 1>that would be allowed to be changed again and do

0:26:10.600 --> 0:26:13.080
<v Speaker 1>all of that. And the point is the Biden administration

0:26:13.240 --> 0:26:15.800
<v Speaker 1>needs a solution in a month. They don't need a

0:26:15.840 --> 0:26:19.520
<v Speaker 1>solution in six months or a year. So that's the

0:26:19.600 --> 0:26:23.240
<v Speaker 1>problem with sort of having taken down that infrastructure. If

0:26:23.280 --> 0:26:27.240
<v Speaker 1>that infrastructure cannot be built so quickly, three institute remain

0:26:27.320 --> 0:26:27.880
<v Speaker 1>in Mexico.

0:26:28.280 --> 0:26:31.320
<v Speaker 4>Okay, thanks so much, Leon. We'll see what Biden decides

0:26:31.359 --> 0:26:34.679
<v Speaker 4>to do if anything. That's Leon Fresco, a partner at

0:26:34.680 --> 0:26:37.680
<v Speaker 4>Holland and Knight. I'm June Gross. When you're listening to Bloomberg.

0:26:38.280 --> 0:26:41.160
<v Speaker 4>Some of the biggest names in corporate America have kicked

0:26:41.200 --> 0:26:44.800
<v Speaker 4>off the year with large layoffs. Companies announced plans to

0:26:44.840 --> 0:26:48.440
<v Speaker 4>cut eighty two thousand, three hundred and seven positions last month,

0:26:48.800 --> 0:26:51.919
<v Speaker 4>up one hundred and thirty six percent from December and

0:26:52.000 --> 0:26:55.280
<v Speaker 4>the second most of any in January since the aftermath

0:26:55.280 --> 0:26:59.600
<v Speaker 4>of the financial crisis. That's according to Challenger, Gray and Christmas.

0:26:59.760 --> 0:27:03.920
<v Speaker 4>So how should companies and executives prepare for large scale layoffs?

0:27:04.280 --> 0:27:08.360
<v Speaker 4>While following employment laws and avoiding litigation. Here to tell

0:27:08.440 --> 0:27:11.520
<v Speaker 4>us is Rebecca Bernhardt, a partner at Dorsey and Whitney.

0:27:11.840 --> 0:27:13.639
<v Speaker 4>Let's start with a big one tell us about the

0:27:13.680 --> 0:27:14.280
<v Speaker 4>WARN Act.

0:27:14.720 --> 0:27:18.520
<v Speaker 3>So the WARN Act, which actually stands for the Worker

0:27:18.560 --> 0:27:22.159
<v Speaker 3>Adjustment and Retraining Notification Act, believe it or not, is

0:27:22.280 --> 0:27:26.359
<v Speaker 3>basically a law on the federal level that applies to

0:27:27.280 --> 0:27:31.480
<v Speaker 3>employers with more than one hundred employees if they are

0:27:32.040 --> 0:27:34.879
<v Speaker 3>going to be doing what's called a mass layoff or

0:27:34.920 --> 0:27:37.679
<v Speaker 3>a plant closure. And then there's of course statutory and

0:27:37.720 --> 0:27:42.200
<v Speaker 3>regulatory definitions of what those terms means. But in a nutshell,

0:27:42.640 --> 0:27:45.240
<v Speaker 3>if you have more than one hundred employees and you're

0:27:45.240 --> 0:27:49.360
<v Speaker 3>going to lay off at least fifty in one single location,

0:27:49.800 --> 0:27:52.720
<v Speaker 3>then the WARN Act is triggered, which is you're giving

0:27:52.800 --> 0:27:55.840
<v Speaker 3>notice not just to the employees, although that's a huge

0:27:55.880 --> 0:27:57.960
<v Speaker 3>component and that's what most people think about it, but

0:27:58.000 --> 0:28:01.080
<v Speaker 3>you're also giving notice to a variety of guys government agencies.

0:28:01.480 --> 0:28:05.359
<v Speaker 3>The original philosophy there was that those government agencies would

0:28:05.440 --> 0:28:08.880
<v Speaker 3>rally and get the unemployment people on standby, and get

0:28:08.880 --> 0:28:12.320
<v Speaker 3>any workforce training resources that they have on standby and

0:28:12.359 --> 0:28:14.600
<v Speaker 3>that kind of thing. So once that applies. It means

0:28:14.600 --> 0:28:17.679
<v Speaker 3>you have to give sixty days advance notice both to

0:28:17.720 --> 0:28:20.840
<v Speaker 3>the group of employees who are affected their union and

0:28:21.080 --> 0:28:24.840
<v Speaker 3>to this variety of state authorities, starting with like the

0:28:24.960 --> 0:28:28.399
<v Speaker 3>mayor of the local community and then the Department of

0:28:28.440 --> 0:28:31.080
<v Speaker 3>Labor is representative in that area that kind of thing.

0:28:31.200 --> 0:28:33.920
<v Speaker 6>Do the government officials that you have to give notice

0:28:33.960 --> 0:28:36.040
<v Speaker 6>to are they able to do anything?

0:28:36.880 --> 0:28:40.160
<v Speaker 3>In theory, they don't do anything other than rally their

0:28:40.160 --> 0:28:44.640
<v Speaker 3>own resources. They don't actually engage with the employer to

0:28:44.680 --> 0:28:49.320
<v Speaker 3>negotiate over who's being laid off or what's being done

0:28:49.400 --> 0:28:52.600
<v Speaker 3>with for example, severance packages or anything like that. The

0:28:52.640 --> 0:28:55.960
<v Speaker 3>reason I mentioned that is because there are a couple

0:28:56.040 --> 0:28:59.040
<v Speaker 3>exceptions to the Warnan Act in terms of when you

0:28:59.160 --> 0:29:01.800
<v Speaker 3>can give notice, and a lot of companies like to

0:29:01.880 --> 0:29:04.640
<v Speaker 3>rely on these exceptions. But I say it's, you know,

0:29:04.800 --> 0:29:09.120
<v Speaker 3>you should be cautious because the unforeseen circumstances or the

0:29:09.120 --> 0:29:14.480
<v Speaker 3>faltering business exceptions, and the unforeseen circumstances was a big

0:29:14.480 --> 0:29:17.560
<v Speaker 3>one during the pandemic. Of course, they still require you

0:29:17.600 --> 0:29:19.760
<v Speaker 3>to give notice, and they definitely require you to give

0:29:19.760 --> 0:29:21.720
<v Speaker 3>notice to government. It's just that you might not have

0:29:21.760 --> 0:29:23.680
<v Speaker 3>to give sixty day notice. You have to give notice

0:29:23.720 --> 0:29:26.680
<v Speaker 3>as soon as possible, and so a lot of employers

0:29:27.120 --> 0:29:29.440
<v Speaker 3>will say, oh, we're a fultering company, or they were

0:29:29.520 --> 0:29:32.640
<v Speaker 3>unforeseen circumstances, and so they'll lay the people off that

0:29:32.720 --> 0:29:35.560
<v Speaker 3>same day with no notice, and then they forget to

0:29:35.600 --> 0:29:38.960
<v Speaker 3>give the government their notice because they think we're not

0:29:39.680 --> 0:29:43.320
<v Speaker 3>following them one Act sixty day notes requirement, and then

0:29:43.320 --> 0:29:46.320
<v Speaker 3>they're in trouble with the government for not issuing those

0:29:46.360 --> 0:29:48.880
<v Speaker 3>government notices, and that involves fine.

0:29:49.120 --> 0:29:53.240
<v Speaker 6>I mean, often you hear about layoffs. You know, they're

0:29:53.320 --> 0:29:55.440
<v Speaker 6>laying off this many people, and they're laying them off

0:29:55.520 --> 0:29:58.640
<v Speaker 6>right then they don't give you know, two months notice

0:29:58.800 --> 0:30:02.080
<v Speaker 6>to the employee. Is that they're looking at an exception?

0:30:03.640 --> 0:30:07.000
<v Speaker 3>It could be, and it certainly was fairly common in

0:30:07.120 --> 0:30:09.840
<v Speaker 3>again in the pandemic. Now, I mean, I obviously can't

0:30:09.840 --> 0:30:12.960
<v Speaker 3>speak to every individual circumstance, and it's possible that they're

0:30:12.960 --> 0:30:15.360
<v Speaker 3>looking exceptions, but a lot of companies do what I

0:30:15.480 --> 0:30:18.600
<v Speaker 3>call pre pay the penalty. So if you fail on

0:30:18.640 --> 0:30:22.400
<v Speaker 3>the employees side, the penalty or the remedy, if you will,

0:30:23.400 --> 0:30:27.680
<v Speaker 3>would be that the employee is entitled to basically their

0:30:27.720 --> 0:30:31.040
<v Speaker 3>salary and continued benefits for the period in which the

0:30:31.080 --> 0:30:34.560
<v Speaker 3>note was deficient. So in your example, if I'm told

0:30:34.600 --> 0:30:37.320
<v Speaker 3>today that I'm being laid off, i didn't get my

0:30:37.360 --> 0:30:40.440
<v Speaker 3>sixties day notice, so I'm entitled to sixty days of

0:30:40.520 --> 0:30:44.280
<v Speaker 3>pay and benefits. And so a lot of times employers

0:30:44.320 --> 0:30:47.680
<v Speaker 3>will say, sorry, Rebecca, we're laying you off today. Here's

0:30:47.720 --> 0:30:50.640
<v Speaker 3>a severance package that includes at least sixty days notice

0:30:50.640 --> 0:30:53.720
<v Speaker 3>and at least sixty days of all your continued benefits.

0:30:53.960 --> 0:30:57.520
<v Speaker 3>Sign this release, and they're hoping basically that that will

0:30:57.680 --> 0:31:01.160
<v Speaker 3>satisfy their obligations. As a relief to the individual employees.

0:31:01.280 --> 0:31:03.080
<v Speaker 3>They don't want to give the notice, so they just

0:31:03.400 --> 0:31:07.400
<v Speaker 3>essentially prepay the damages of the potential litigation if it ensues.

0:31:07.840 --> 0:31:12.080
<v Speaker 6>What happens if you have union members in your workforce?

0:31:12.360 --> 0:31:13.560
<v Speaker 6>What should employers do?

0:31:14.040 --> 0:31:15.959
<v Speaker 3>Well, this is a great question because the first thing

0:31:15.960 --> 0:31:18.160
<v Speaker 3>you should do is pull out your collective bargaining agreement,

0:31:18.400 --> 0:31:21.640
<v Speaker 3>your contract with the union, because there might be language

0:31:21.640 --> 0:31:23.320
<v Speaker 3>in there, and you don't want to be in a

0:31:23.440 --> 0:31:26.160
<v Speaker 3>position of not following what you've already agreed upon with

0:31:26.240 --> 0:31:28.920
<v Speaker 3>the union, which you could have agreed upon decades ago. Right,

0:31:29.240 --> 0:31:32.800
<v Speaker 3>a lot of union relationships are decades old and current

0:31:32.800 --> 0:31:36.080
<v Speaker 3>managers don't remember all of the well i'll call boiler

0:31:36.120 --> 0:31:38.240
<v Speaker 3>plate that's in a collective barning agreement because they never

0:31:38.320 --> 0:31:41.640
<v Speaker 3>have to use it. Right, But generally speaking, if there's

0:31:41.760 --> 0:31:44.040
<v Speaker 3>language in the collective barging agreement that says you have

0:31:44.120 --> 0:31:48.000
<v Speaker 3>to bargain with the union before you implement layoffs, then

0:31:48.000 --> 0:31:48.920
<v Speaker 3>that's what you have to do.

0:31:49.160 --> 0:31:49.320
<v Speaker 1>Right.

0:31:49.320 --> 0:31:50.640
<v Speaker 3>You have to sit down. You have to say we're

0:31:50.680 --> 0:31:53.720
<v Speaker 3>in trouble, we need to reduce our workforce, and we're

0:31:53.720 --> 0:31:55.600
<v Speaker 3>here to talk to you about what your ideas are

0:31:55.640 --> 0:31:59.400
<v Speaker 3>for that. Right, most general labor law says that unless

0:31:59.400 --> 0:32:01.320
<v Speaker 3>there is the scifick language like that, you don't have

0:32:01.360 --> 0:32:03.920
<v Speaker 3>to bargain with the union what i'll call in advance

0:32:04.120 --> 0:32:07.600
<v Speaker 3>over the decision. But you do have to bargain over

0:32:07.680 --> 0:32:10.720
<v Speaker 3>what's called the effects, and that's called effects bargaining. And

0:32:10.800 --> 0:32:12.560
<v Speaker 3>so you have to say to the union, we are

0:32:12.600 --> 0:32:14.520
<v Speaker 3>going to lay people off. We're going to lay you know,

0:32:14.560 --> 0:32:17.440
<v Speaker 3>one hundred people off from these two plants, and we're

0:32:17.480 --> 0:32:20.080
<v Speaker 3>here to bargain with you over you know, the effects

0:32:20.080 --> 0:32:23.600
<v Speaker 3>of that layoff. And generally speaking, that's you know, as

0:32:23.600 --> 0:32:27.440
<v Speaker 3>you would expect severance, But sometimes unions want contributions depend

0:32:27.600 --> 0:32:30.880
<v Speaker 3>funds over money, and sometimes they might want retraining money,

0:32:31.160 --> 0:32:33.720
<v Speaker 3>you know, to help their employees get jobs somewhere else.

0:32:33.960 --> 0:32:35.720
<v Speaker 3>So you know, that's the theory. They have the right

0:32:35.760 --> 0:32:38.239
<v Speaker 3>to sort of decide what kind of sefarence they want. Now,

0:32:38.240 --> 0:32:42.719
<v Speaker 3>it's possible that the contract itself already contains some severance language.

0:32:42.880 --> 0:32:47.240
<v Speaker 3>It's usually contains seniority clauses, which give you some guide

0:32:47.240 --> 0:32:49.320
<v Speaker 3>of if you are laying people off, here's the order

0:32:49.360 --> 0:32:51.360
<v Speaker 3>in which you have to do it. Those kinds of

0:32:51.360 --> 0:32:53.200
<v Speaker 3>things have to be followed, or else you're going to

0:32:53.200 --> 0:32:56.160
<v Speaker 3>get in trouble with kind of union mitigation. So you

0:32:56.160 --> 0:32:58.440
<v Speaker 3>want to follow anything that's already in the contract, and

0:32:58.440 --> 0:33:00.960
<v Speaker 3>then you want to sit down and bargain or anything

0:33:01.000 --> 0:33:03.720
<v Speaker 3>that hasn't been decided about the layoff process.

0:33:03.880 --> 0:33:06.760
<v Speaker 6>If there is no language in the contract in the

0:33:06.880 --> 0:33:11.680
<v Speaker 6>union contract, do unions have any power to stop a layoff.

0:33:12.320 --> 0:33:16.280
<v Speaker 3>So, of course the current and LRB is very employee friendly,

0:33:17.000 --> 0:33:20.920
<v Speaker 3>and so you know, it is unclear how cases might

0:33:20.960 --> 0:33:26.400
<v Speaker 3>have evolved, but in general, the case law that's kind

0:33:26.400 --> 0:33:29.520
<v Speaker 3>of Supreme Court made that has bubbled up and it's

0:33:30.040 --> 0:33:33.000
<v Speaker 3>pretty old. It's you know, cases from the seventies and eighties.

0:33:33.920 --> 0:33:36.240
<v Speaker 3>It says basically what I just said, which is you

0:33:36.240 --> 0:33:38.920
<v Speaker 3>don't get to you don't get to bargain over the

0:33:38.960 --> 0:33:42.200
<v Speaker 3>decision of whether or author's playoffs. But that doesn't mean

0:33:42.200 --> 0:33:44.640
<v Speaker 3>that a union can't try. Right, a union could say,

0:33:44.760 --> 0:33:46.840
<v Speaker 3>we understand you want to do layoffs, we'd like to

0:33:46.880 --> 0:33:50.720
<v Speaker 3>talk to you because we have an alternative suggestion. We'd

0:33:50.800 --> 0:33:53.880
<v Speaker 3>rather go to part time schedules, or we'd rather, you know,

0:33:54.080 --> 0:33:56.800
<v Speaker 3>move some work from point A to point B. They

0:33:56.840 --> 0:34:01.960
<v Speaker 3>are certainly free to request negotiation. They of course have

0:34:02.080 --> 0:34:03.920
<v Speaker 3>all of the economic tools that they would have in

0:34:03.960 --> 0:34:07.840
<v Speaker 3>any bargaining situation, which, as we understand them, are strikes.

0:34:08.520 --> 0:34:10.239
<v Speaker 3>Of course, that would be ironic to go on a

0:34:10.280 --> 0:34:13.520
<v Speaker 3>strike regarding a layoff, but that is, you know, the

0:34:14.680 --> 0:34:17.719
<v Speaker 3>biggest weapon that a union has is to sort of

0:34:17.719 --> 0:34:21.600
<v Speaker 3>put that economic pressure. I think that the Uniana workers

0:34:21.840 --> 0:34:25.279
<v Speaker 3>what I'll call rolling job actions that happened, you know,

0:34:25.320 --> 0:34:29.120
<v Speaker 3>a couple of months ago. Those were an interesting creative strategy,

0:34:29.160 --> 0:34:30.719
<v Speaker 3>and you can see how that would work in a

0:34:30.840 --> 0:34:34.919
<v Speaker 3>layoff pressure campaign. Right, if I want to lay off,

0:34:35.160 --> 0:34:37.200
<v Speaker 3>if I want to you know, close my plants and

0:34:37.680 --> 0:34:42.120
<v Speaker 3>you know, Detroit, Michigan, my workers in you know, Mary

0:34:42.120 --> 0:34:44.719
<v Speaker 3>in Indiana might say, oh, well we're going to we're

0:34:44.719 --> 0:34:46.440
<v Speaker 3>going to strike, and it's like, no, no, no, I like

0:34:46.520 --> 0:34:48.920
<v Speaker 3>that plan. I want that plan to be operational, right,

0:34:48.960 --> 0:34:51.480
<v Speaker 3>and that and that might put pressure on me as

0:34:51.480 --> 0:34:54.200
<v Speaker 3>the employer to sit down with the union to figure

0:34:54.200 --> 0:34:55.400
<v Speaker 3>out what we're going to do about Detroit.

0:34:55.880 --> 0:35:00.720
<v Speaker 6>So now there's always a question of, you know Title

0:35:00.840 --> 0:35:04.960
<v Speaker 6>seven antidiscrimination laws, what are the concerns that employers have

0:35:05.040 --> 0:35:05.920
<v Speaker 6>to think about there?

0:35:06.760 --> 0:35:09.560
<v Speaker 3>That is the biggest kind of area I think employer

0:35:09.760 --> 0:35:12.960
<v Speaker 3>side and employment lawyers are kind of engaged to deal with.

0:35:13.200 --> 0:35:14.760
<v Speaker 3>It's the selection who.

0:35:15.040 --> 0:35:15.200
<v Speaker 1>Right.

0:35:15.239 --> 0:35:17.520
<v Speaker 3>In the union context, we've got what I said already,

0:35:17.560 --> 0:35:19.920
<v Speaker 3>we've got this kind of seniority concept that helps you

0:35:20.000 --> 0:35:23.600
<v Speaker 3>select and that kind of insulates employer in that world.

0:35:23.640 --> 0:35:26.000
<v Speaker 3>But in the non union environment, it's really up to

0:35:26.040 --> 0:35:29.280
<v Speaker 3>the employer to decide who I'm picking, right, and human

0:35:29.360 --> 0:35:31.759
<v Speaker 3>nature is going to be such that I want to

0:35:31.760 --> 0:35:34.000
<v Speaker 3>pick the people I think are the worst performers, or

0:35:34.000 --> 0:35:35.719
<v Speaker 3>I want to pick the people that I don't like.

0:35:36.480 --> 0:35:40.200
<v Speaker 3>I'm a human being, I have emotions, and so of

0:35:40.239 --> 0:35:44.279
<v Speaker 3>course anytime you're making those kinds of decisions, you want

0:35:44.280 --> 0:35:47.879
<v Speaker 3>to make sure that you can defend those on objective

0:35:48.080 --> 0:35:52.680
<v Speaker 3>criteria and not subjective criteria, because subjective criteria would make

0:35:52.719 --> 0:35:57.000
<v Speaker 3>it easier for the affected employees to proceed with discrimination suits.

0:35:57.160 --> 0:35:59.560
<v Speaker 3>You know, you might say that you pick the people

0:35:59.600 --> 0:36:02.560
<v Speaker 3>with the lost review scores, but it just happens that

0:36:02.600 --> 0:36:05.080
<v Speaker 3>you picked all of the you know, the people of color,

0:36:05.280 --> 0:36:09.000
<v Speaker 3>and we think that you know, your statement that it

0:36:09.160 --> 0:36:12.279
<v Speaker 3>was the lowest performance scores is actually pretext and you

0:36:12.320 --> 0:36:14.000
<v Speaker 3>were just trying to get rid of the people of

0:36:14.040 --> 0:36:18.120
<v Speaker 3>color in the plant. And so the selection of who

0:36:18.160 --> 0:36:22.160
<v Speaker 3>gets picked for the layoffs would trigger any of the

0:36:22.160 --> 0:36:26.680
<v Speaker 3>protective statuses under the state or federal laws Title seven

0:36:26.719 --> 0:36:29.759
<v Speaker 3>as you noted, but the Age Discrimination Act, and then

0:36:29.880 --> 0:36:33.200
<v Speaker 3>any local laws that mirror those, and then of course

0:36:33.200 --> 0:36:35.960
<v Speaker 3>disability to so layoffs.

0:36:36.040 --> 0:36:39.280
<v Speaker 6>I've seen people laid off and then they get something

0:36:39.800 --> 0:36:42.279
<v Speaker 6>from the company. Here's who we laid off. So we

0:36:42.360 --> 0:36:46.759
<v Speaker 6>laid off twenty people above the age of fifty, and

0:36:46.800 --> 0:36:50.560
<v Speaker 6>then we kept twenty people above the age of fifty.

0:36:51.040 --> 0:36:54.279
<v Speaker 6>I mean, do they try to balance it out that way?

0:36:54.360 --> 0:36:58.120
<v Speaker 3>So that is an obligation to provide what that's called

0:36:58.120 --> 0:37:02.160
<v Speaker 3>a disclosure statement under the relations for the Age Discrimination

0:37:02.280 --> 0:37:05.920
<v Speaker 3>Acts amendment of the Older Workers Benefit Protection Act. So

0:37:06.120 --> 0:37:09.200
<v Speaker 3>the Older Worker Benefit Protection Act amended the Age Discrimination

0:37:09.280 --> 0:37:11.479
<v Speaker 3>Act and said, if you're going to lay people off

0:37:11.680 --> 0:37:14.000
<v Speaker 3>and you're going to give them a release of claims

0:37:14.000 --> 0:37:17.719
<v Speaker 3>to sign in connection with the seference package and it's

0:37:17.719 --> 0:37:20.359
<v Speaker 3>a group, you know, termination, you need to give them

0:37:20.400 --> 0:37:24.320
<v Speaker 3>information about everybody who was laid off and their ages.

0:37:24.640 --> 0:37:26.080
<v Speaker 3>You can do it by job title. You're not going

0:37:26.160 --> 0:37:29.400
<v Speaker 3>to do it by name. And that way those older

0:37:29.440 --> 0:37:31.760
<v Speaker 3>people can take it to a journey if they wish,

0:37:32.040 --> 0:37:35.000
<v Speaker 3>and there's an easy way to visually say are they

0:37:35.000 --> 0:37:37.719
<v Speaker 3>really picking on all the old people? And if you

0:37:37.760 --> 0:37:40.600
<v Speaker 3>know your history just came out of the movement in

0:37:40.640 --> 0:37:42.879
<v Speaker 3>the eighties, which of course is where the Warnact came

0:37:42.880 --> 0:37:45.760
<v Speaker 3>out of too. There was a lot of plant closures

0:37:45.760 --> 0:37:48.600
<v Speaker 3>in the eighties and a lot of companies just picked

0:37:48.640 --> 0:37:50.719
<v Speaker 3>all the older workers because they were the more expensive.

0:37:50.880 --> 0:37:53.359
<v Speaker 3>It saved the money on their pensions, and all these

0:37:53.360 --> 0:37:55.360
<v Speaker 3>folks got laid off and then they didn't realize they

0:37:55.400 --> 0:37:58.600
<v Speaker 3>were losing their pensions in the process. So the WARN

0:37:58.640 --> 0:38:00.719
<v Speaker 3>Act came up to sort of help on that end,

0:38:00.760 --> 0:38:03.440
<v Speaker 3>and then the Older Worker Benefit Protection Act was kind

0:38:03.440 --> 0:38:06.560
<v Speaker 3>of a sort of individual right roomy neal amendments to

0:38:06.600 --> 0:38:09.719
<v Speaker 3>help people get more information about who's being selected and

0:38:09.719 --> 0:38:12.880
<v Speaker 3>who's not to decide is there really an age discrimination?

0:38:13.400 --> 0:38:17.120
<v Speaker 3>So interestingly enough, you had mentioned Title seven before that

0:38:17.160 --> 0:38:19.719
<v Speaker 3>doesn't require that same kind of disclosure on whether it's

0:38:19.760 --> 0:38:25.120
<v Speaker 3>men versus women, or Lutherans versus Catholics, so you know,

0:38:25.239 --> 0:38:27.840
<v Speaker 3>or all the other protective statuses, you know, white versus

0:38:27.920 --> 0:38:32.600
<v Speaker 3>non white, and so employers do, I think, try to

0:38:32.600 --> 0:38:35.960
<v Speaker 3>do that assessment and that analysis across the board, but

0:38:36.000 --> 0:38:39.520
<v Speaker 3>they only have to actually share those numbers with the

0:38:39.600 --> 0:38:43.359
<v Speaker 3>affected employees visa the age, and I do think they

0:38:43.400 --> 0:38:45.880
<v Speaker 3>try to balance it out. If employers bringing lawyers like

0:38:45.920 --> 0:38:48.120
<v Speaker 3>me into the mix, and we look at that statement

0:38:48.239 --> 0:38:51.600
<v Speaker 3>before it gets you know, finalized, we think, geez, it

0:38:51.760 --> 0:38:54.200
<v Speaker 3>looks like you've got sixty people being laid off and

0:38:54.480 --> 0:38:57.120
<v Speaker 3>fifty five of them are old, Right, how are you

0:38:57.160 --> 0:38:58.000
<v Speaker 3>picking your people?

0:38:58.239 --> 0:38:58.399
<v Speaker 1>Right?

0:38:58.440 --> 0:39:01.640
<v Speaker 3>That looks pretty permisitious, And we would work on sort

0:39:01.640 --> 0:39:04.160
<v Speaker 3>of the selection criteria and say, you know, are you

0:39:04.239 --> 0:39:06.200
<v Speaker 3>sure that these are the right sixty people?

0:39:06.920 --> 0:39:11.879
<v Speaker 6>Are there any general rules you would give employers when

0:39:11.920 --> 0:39:13.759
<v Speaker 6>they're thinking about layoffs?

0:39:14.560 --> 0:39:17.920
<v Speaker 3>Yeah, I think that all of these different anti excrimination

0:39:18.040 --> 0:39:22.480
<v Speaker 3>laws and warning requirements are counterintuitive to the way people

0:39:22.960 --> 0:39:25.960
<v Speaker 3>tend to make their actual business decisions. And so I've

0:39:26.040 --> 0:39:29.840
<v Speaker 3>just encourage people to try to slow down and contact council,

0:39:30.400 --> 0:39:32.920
<v Speaker 3>either in house counsel if you got it, or external

0:39:32.960 --> 0:39:37.040
<v Speaker 3>employment council, just to help reframe the decision making. You know,

0:39:37.080 --> 0:39:39.920
<v Speaker 3>no one wants to question your business. No lawyer, no

0:39:39.960 --> 0:39:43.520
<v Speaker 3>good lawyers should question your legitimate business needs to take

0:39:43.560 --> 0:39:46.920
<v Speaker 3>the steps you need to take. But by slowing down

0:39:47.080 --> 0:39:49.759
<v Speaker 3>and sort of helping think about what does the law

0:39:49.920 --> 0:39:52.680
<v Speaker 3>say you have to think about, I think you can

0:39:52.719 --> 0:39:54.839
<v Speaker 3>still make the business decisions you need, but you can

0:39:54.920 --> 0:39:57.600
<v Speaker 3>sort of be aware of the legal framework that might

0:39:57.840 --> 0:40:00.840
<v Speaker 3>constrain some of those business decisions or require you to

0:40:00.880 --> 0:40:04.239
<v Speaker 3>think about, you know, a selection criteria. It's more objective,

0:40:04.239 --> 0:40:07.719
<v Speaker 3>for example, and the after effects and costs. Right, if

0:40:07.760 --> 0:40:10.080
<v Speaker 3>we don't give notice, what are the caught risks of

0:40:10.280 --> 0:40:13.279
<v Speaker 3>being sued for notice pay in the first place? And

0:40:13.320 --> 0:40:16.239
<v Speaker 3>so is it actually cheaper to give that notice and

0:40:16.320 --> 0:40:19.399
<v Speaker 3>let those people work? You know, that kind of thing A.

0:40:19.400 --> 0:40:21.920
<v Speaker 4>Love for employers to think about. Thanks so much, Rebecca.

0:40:22.120 --> 0:40:25.200
<v Speaker 4>That's Rebecca Bernhardt of Dorsey and Whitney and that's it

0:40:25.239 --> 0:40:28.200
<v Speaker 4>for this edition of the Bloomberg Law Podcast. Remember you

0:40:28.239 --> 0:40:31.000
<v Speaker 4>can always get the latest legal news by subscribing and

0:40:31.040 --> 0:40:34.520
<v Speaker 4>listening to the show on Apple Podcasts, Spotify, and at

0:40:34.560 --> 0:40:38.880
<v Speaker 4>Bloomberg dot com, slash podcast, slash Law. I'm June Grosso,

0:40:39.120 --> 0:40:40.600
<v Speaker 4>and this is Bloomberg