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Appeals court backs Trump’s firings of MSPB, NLRB members

A three-judge panel ruled Friday that President Donald Trump’s firings without cause of Cathy Harris and Gwynne Wilcox, Democratic members on the Merit Systems Protection Board and the National Labor Relations Board, were lawful.

The split 2-to-1 panel decision of the D.C. Circuit Court of Appeals has no immediate effect, since both Harris and Wilcox’s firings were finalized in May. But Friday’s ruling comes as the Supreme Court is expected to soon hear arguments on whether to overturn a 90-year-old ruling known as Humphrey’s Executor — a decision that could expand Trump’s power to shape independent agencies.

In the 1935 Supreme Court ruling on Humprey’s Executor, the justices unanimously found that commissioners can be removed only for misconduct or neglect of duty, effectively limiting when presidents can fire board members.

But when Judges Gregory Katsas and Justin Walker ruled Friday in favor of Trump’s firings of Harris and Wilcox, they argued that MSPB and NLRB fall outside the limitations stemming from Humphrey’s Executor, and that the president can still “remove principal officers who wield substantial executive power.”

“The NLRB and MSPB wield substantial powers that are both executive in nature and different from the powers that Humphrey’s Executor deemed to be merely quasi-legislative or quasi-judicial,” the judges wrote. “So, Congress cannot restrict the President’s ability to remove NLRB or MSPB members.”

Judge Florence Pan, the dissenting panel member and a Biden appointee, argued that the two agencies do fall under the scope of Humphrey’s Executor, and that maintaining the independence of MSPB and NLRB is critical. She wrote that the Trump administration’s “extreme view of executive power sharply departs from precedent.”

“We may soon be living in a world in which every hiring decision and action by any government agency will be influenced by politics, with little regard for subject-matter expertise, the public good, and merit-based decision-making,” she wrote.

The MSPB is an independent agency responsible for adjudicating appeals from federal employees who allege prohibited personnel practices by their agencies. The NLRB investigates unfair labor practices in the private sector and oversees union elections. Both boards are typically composed of members of both political parties.

Trump fired both Wilcox and Harris within his first few weeks in office, but did not point to a specific reason for the terminations. Wilcox and Harris, both of whom were Democratic board members, sued the president over their removals, arguing that they are protected by a federal law meant to ensure MSPB and NLRB’s independence from political considerations — and that the president can only remove them “for inefficiency, neglect of duty, or malfeasance in office.”

Though a federal judge initially ruled the two terminations were unlawful, the Supreme Court reversed that decision in May, effectively green-lighting the finalization of the board members’ firings earlier this year.

In its May decision, the Supreme Court indicated that it was likely “that both the NLRB and MSPB exercise considerable executive power,” which it said would make restrictions on the president’s ability to fire them unconstitutional. Friday’s panel ruling aligns with the Supreme Court’s initial arguments.

The Supreme Court is expected to hear arguments Monday on Trump’s firing of Rebecca Slaughter, a Democratic member of the Federal Trade Commission — a case that may further influence the outcome of both Harris and Wilcox’s terminations.

The Associated Press contributed reporting.

The post Appeals court backs Trump’s firings of MSPB, NLRB members first appeared on Federal News Network.

© AP Photo/J. Scott Applewhite

FILE - The Supreme Court Building is seen in Washington on March 28, 2017. (AP Photo/J. Scott Applewhite, File)

Stay warm with hot holiday deals at AmeriCannaRx

This holiday season will be a cold one, but AmeriCannaRx is helping you and yours stay warm with hot deals all December long. They are offering a gigantic 60% off discount on select products throughout the end of the year, so you’ll have more than enough to stuff your stocking. They’ll even price match any […]

The post Stay warm with hot holiday deals at AmeriCannaRx appeared first on Leafly.

China Hackers Using Brickstorm Backdoor to Target Government, IT Entities

china, flax typhoon,

Chinese-sponsored groups are using the popular Brickstorm backdoor to access and gain persistence in government and tech firm networks, part of the ongoing effort by the PRC to establish long-term footholds in agency and critical infrastructure IT environments, according to a report by U.S. and Canadian security offices.

The post China Hackers Using Brickstorm Backdoor to Target Government, IT Entities appeared first on Security Boulevard.

Netflix’s $72B WB acquisition confounds the future of movie theaters, streaming

The bidding war is over, and Netflix has been declared the winner.

After flirting with Paramount Skydance and Comcast, Warner Bros. Discovery (WBD) has decided to sell its streaming and movie studios business to Netflix. If approved, the deal is set to overturn the media landscape and create ripples that will affect Hollywood for years.

$72 billion acquisition

Netflix will pay an equity value of $72 billion, or an approximate total enterprise value of $82.7 billion, for Warner Bros. All of WBD has a $60 billion market value, NBC News notes.

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Stars on the ceiling, Cher on the speakers: Notes from our first ride in Amazon’s Zoox robotaxi

Members of GeekWire’s team in Las Vegas posing for a selfie after taking Amazon’s Zoox robotaxis for a spin in Las Vegas, L-R: Brian Westbrook, Todd Bishop, Steph Stricklen, Holly Grambihler (front), and Jessica Reeves (right).

LAS VEGAS — Our toaster has arrived.

Amazon’s Zoox robotaxi service launched in Las Vegas this fall, and a few members of the hard-working GeekWire Studios crew joined me to try it out for a ride to dinner after a long day at AWS re:Invent. Zoox was nothing short of a hit with our group.

The consensus: it was a smooth, futuristic shuttle ride that felt safe amid the Las Vegas chaos, with per-seat climate control, and customizable music. (Somehow we landed on Cher, but in this vehicle, we felt no need to turn back time.) Most of all, the face-to-face seating made for a fun group experience, rather than a retrofitted car like Waymo. 

Zoox, founded in 2014, was acquired by Amazon in 2020 for just over $1 billion, marking the tech giant’s move into autonomous vehicle technology and urban mobility. Zoox operates as an independent subsidiary, based in Foster City, Calif.​​

Our Zoox robotaxi waits outside Fashion Show Mall. (GeekWire Photo / Holly Grambihler)

Unlike competitors that retrofit vehicles, Zoox designed its robotaxi from scratch. It’s a compact, 12-foot-long electric pod, bidirectional, without steering wheel or pedals.

The experience of calling the Zoox vehicle on the app was seamless and quick. The doors opened via a button in the app after the carriage arrived to pick us up at a designated station between Fashion Show Mall and Trump International Hotel. 

Inside, our nighttime ride featured a starfield display on the interior ceiling of the cab, adding to the magical feel, with functional seats comfortable enough for a drive across the city.

Jessica Reeves, left, and Steph Stricklen check out the interior of the Zoox carriage. (GeekWire Photo / Brian Westbrook)

A few of us had experienced Waymo in California, so it was natural to make the comparison. One thing I missed was the live virtual road view that Waymo provides, representing surrounding vehicles and roadways, which provides some reassurance.

Emergency human assistance also seemed more accessible in the Waymo vehicles than in the Zoox carriage. And unlike the Waymo Jaguar cars that I’ve taken in San Francisco, the build quality of the Zoox vehicle felt more utilitarian than luxury.

For this current phase of the Vegas rollout, one major downside is the limited service area — just seven fixed spots along the Las Vegas strip, like Resorts World, Luxor, and AREA15, requiring walks between hubs rather than seamless point-to-point hails. It’s more of a novelty for that reason, rather than a reliable form of transportation.

But hey, the rides are free for now, so it’s hard to complain.

And the ability to sit across from each other more than made up for any minor quibbles. (Our group of five split up and took two four-person carriages from Fashion Show Mall to Resorts World.) Compared to the Waymo experience, the Zoox vehicle feels less like sitting in a car and more like sharing a moving living room.

GeekWire Studios host Steph Stricklen was initially skeptical — wondering if Vegas would be the right place for an autonomous vehicle, given the chaotic backdrop and unpredictable traffic patterns on the Strip. But she walked away a believer, giving the ride a “10 out of 10” and saying she never felt unsafe as a passenger. 

“It felt very Disneyland,” said GeekWire Studios host Brian Westbrook, citing the creature comforts such as climate control that seemed to be isolated to each seat. Along with music and other controls, that’s one of the features that can be accessed via small touch-screen displays for each passenger on the interior panel of the vehicle.

GeekWire project manager Jessica Reeves said she almost forgot that there wasn’t a human driving. Despite rapid acceleration at times, the ride was smooth.

“It didn’t feel like I was riding in an autonomous vehicle, maybe it was just the buzz of experiencing this new way of transportation,” Jessica messaged me afterward, reflecting on the experience. “The spaciousness, facing my friends, exploring the different features, it all happened so fast that before I knew it, we were there!”

Holly Grambihler, GeekWire’s chief sales and marketing officer, was impressed with the clean interior and comfortable seats.

“It felt less like a vehicle and more like a mobile karaoke studio with the customized climate control and ability to choose your music — Cher in Vegas, perfect!” Holly said. “It felt safe with our short ride. I don’t think I’d take a Zoox on a freeway yet.”

On that point: Zoox’s purpose-built pod is engineered to reach highway speeds of up to about 75 mph, and the company has tested it at those velocities on closed tracks. In Las Vegas, though, the robotaxis currently stick to surface streets at lower speeds, and Zoox hasn’t yet started mixing into freeway traffic.

The Zoox station outside Resorts World Las Vegas. (GeekWire Photo / Brian Westbrook)

The Vegas service launch marked Zoox’s first public robotaxi deployment, offering free rides along a fixed loop on and around the Strip while gathering data for paid trips. Zoox followed with a limited public launch in San Francisco in November.

For Amazon, the technology represents a long-term bet, with the potential to contribute to its logistics operations. It’s not hard to imagine similar vehicles shuttling packages in the future. But for now the focus is on public ridership.

The company has flagged Austin, Miami, Los Angeles, Atlanta, Washington, D.C., and Seattle as longer-term potential markets for the robotaxi service as regulations and technology mature. We’ve contacted Zoox for the latest update on its plans.

If our own ride this week was any indication, the company’s biggest challenge may simply be expanding the robotaxi service fast enough for more people to try it.

Editor’s note: GeekWire Studios is the content production arm of GeekWire, creating sponsored videos, podcasts, and other paid projects for a variety of companies and organizations, separate from GeekWire’s independent news coverage. GeekWire Studios had a booth at re:Invent, recording segments with Amazon partners in partnership with AWS. Learn more about GeekWire Studios.

Washington state lawmaker says proposed payroll tax could benefit large tech companies

Rep. Shaun Scott, D-43.

A newly proposed payroll tax would add new costs for large businesses in Washington state. But Rep. Shaun Scott, a Seattle Democrat sponsoring the bill, argues it would protect the basic services that help companies recruit and retain talent.

“People are looking to the state legislature for leadership on protecting the programs that make our state actually a healthy climate to do business in,” Scott told GeekWire this week.

House Bill 2100, pre-filed this week in Olympia, would create the “Well Washington Fund” and levy a 5% payroll expense tax on “large operating companies” for employee wages above a $125,000 threshold. The bill defines a “large operating company” as one with more than 20 employees and more than $5 million in gross receipts or sales, among other criteria. Employers with total employee wages under $7 million in the prior year would be exempt.

Scott is pitching the bill as a state backstop against federal cuts hitting Medicaid, higher education, housing and other programs. He said it would generate more than $2 billion annually and impact the about 4,300 businesses — including Redmond, Wash.-based tech giant Microsoft and telecom behemoth T-Mobile, headquartered in Bellevue.

Seattle-based companies such as Amazon that already pay the city’s JumpStart payroll tax would be exempt.

Scott said there is a “corollary effect” on corporations from policies that benefit “everyday people.”

“My sense of it is that the public is on our side on this issue,” he said. “They understand that when you have very well-funded higher education, what that means is a well-trained workforce that could seek employment at a place like Microsoft or Amazon — and the company would benefit as a result.”

“When you have people who have very good housing options, that makes Washington that much more of a competitive place to come and do business,” he added.

Business groups are wary of the proposal. Rachel Smith, the new CEO of Washington Roundtable, called it a “tax-first, plan later” idea. She also cited the state’s recent tax increases impacting businesses — passed in part to help address a $16 billion budget shortfall — and broader economic uncertainty.

Washington Roundtable CEO Rachel Smith. (Washington Roundtable Photo)

“If a job is cheaper somewhere else, and a company has an operational environment that allows them to deploy that job somewhere else, of course that’s going to be something they consider,” Smith said in an interview with GeekWire.

Lawmakers tried to pass a similar statewide payroll tax this year, but the bill did not advance. In March, Microsoft President Brad Smith criticized that tax proposal and said it would increase prices for consumers, reduce jobs, and hurt the tech industry.

Microsoft declined to comment on Rep. Scott’s proposal when contacted by GeekWire this week.

Rep. Scott said it’s “disingenuous” that critics raise alarms about companies leaving when the state talks about funding the safety net, but don’t ask similar questions when companies cut jobs on their own. He said the relocation question “does not come up when we see large tech firms investing in artificial intelligence, which is designed to divest from human labor.”

Washington is one of a few states without a personal or corporate income tax. Most state revenue comes from sales, property, and B&O taxes — a system critics say disproportionately burdens lower-income residents.

Gabriella Buono, interim president and CEO at the Seattle Metro Chamber, said that “raising taxes in an affordability crisis will mean higher prices on everyday essentials, fewer job opportunities, and more closures in sectors that are already on the edge.”

“Voters across the political spectrum are clear: they want smart spending, transparency, and results, not new taxes that make it harder to live and work in this state,” Buono said in a statement.

Revenue from the proposed bill would initially go to the state general fund in 2026, then split beginning in 2027, with 51% directed to a dedicated Well Washington fund account and 49% to the general fund. A new oversight and accountability board would guide priorities and report annually. Spending from the account would be limited to higher education, health care — especially Medicaid — cash assistance, and energy and housing programs.

Cultural Lag Leaves Security as the Weakest Link

cybersecurity

For too long, security has been cast as a bottleneck – swooping in after developers build and engineers test to slow things down. The reality is blunt; if it’s bolted on, you’ve already lost. The ones that win make security part of every decision, from the first line of code to the last boardroom conversation...

The post Cultural Lag Leaves Security as the Weakest Link appeared first on Security Boulevard.

Elon Musk’s X first to be fined under EU’s Digital Services Act

Elon Musk’s X became the first large online platform fined under the European Union’s Digital Services Act on Friday.

The European Commission announced that X would be fined nearly $140 million, with the potential to face “periodic penalty payments” if the platform fails to make corrections.

A third of the fine came from one of the first moves Musk made when taking over Twitter. In November 2022, he changed the platform’s historical use of a blue checkmark to verify the identities of notable users. Instead, Musk started selling blue checks for about $8 per month, immediately prompting a wave of imposter accounts pretending to be notable celebrities, officials, and brands.

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