TOTAL REWARDS

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UnitedHealth Group reported better-than-expected earnings on July 16, bringing in $5.5 billion in net income during the second quarter, up from $3.4 billion during the same period last year. Its revenue went up to $112 billion, from $111 billion the previous year.

But the insurance giant, which saw its stock rise 7% on the news, also warned that rising medical costs in the commercial market were not yet under control. As a result, employers contracting with UnitedHealth (UHC) are unlikely to see relief from high prices anytime soon.

“We are not yet seeing evidence of cost trend moderation,” Tim Noel, CEO of UnitedHealthcare, said of UHC’s commercial offerings. “In fact, it is the opposite, with medical cost trends modestly above 11% level we previously saw.” He added he expected recovery of commercial profit margins to “remain a focus area longer than originally anticipated.”

Noel pointed to knock-on effects of the No Surprises Act—which is intended to protect patients from surprise billing—as well as more aggressive billing practices among providers, as primary culprits of this still-high cost trend.

For more on the rising medical costs facing employers, and how HR leaders are looking to contain them, keep reading here.—CV

      

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COMPLIANCE

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Acting Labor Secretary Keith Sonderling sat before the Senate Health, Education, Labor, and Pensions (HELP) committee for a job interview (of sorts) to scratch the “acting” off his title and lead the nation’s labor agency responsible for overseeing work and the people who make work happen.

President Trump last month nominated Sonderling to replace ousted Labor Secretary Lori Chavez-DeRemer after a spat of controversies dogged her tenure at the Francis Perkins Building.

Sonderling testified before the committee Thursday and in remarks praised the president for his economic priorities and achievements, touting job growth and new tax policies on overtime and tips, and pointed to his own prior experience in and around the agency to bolster his case that he should lead the department. He also faced questions about apprenticeship priorities under President Trump, investigating unemployment insurance fraud and immigrant labor, and AI readiness.

For more on Sonderling’s Senate confirmation hearing, keep reading here.—AD

      

COMPLIANCE

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Smoke from Canadian wildfires has descended on the US, resulting in dangerous air quality levels in states across the Northeast and Midwest.

Large swaths of Maryland, Pennsylvania, and New Jersey are in the “unhealthy” or “very unhealthy” range on the Air Quality Index, USA Today reported, while Illinois, Minnesota, and Wisconsin hit “hazardous” levels.

Wildfire smoke can be unhealthy and hazardous when particles are inhaled, causing eye and respiratory irritation, according to the Environmental Protection Agency (EPA). Symptoms may be worse for those in sensitive groups, including the immunocompromised. Government officials have recommended staying indoors as much as possible, and wearing N-95 masks or face coverings when going outside.

For more on how HR can help employees impacted by wildfires, keep reading here.—MC

      

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work perks

Francis Scialabba

Today’s top HR reads.

Stat: The number of professionals in North America holding chief of staff titles grew more than 3.5 times between 2021 and 2025, as companies of all sizes adopt the role to support their overwhelmed executives. (Bloomberg)

Quote: “Everyone saw what was going on, the patterns. All the shenanigans. All the years of not getting the same pay. And you know you won’t get a fair chance when you go to HR.”—Vernita Thurman, a former painter at a shipyard of federal contractor BAE Systems, which was under investigation for sexual harassment and discrimination by a Labor Department office until an executive order from President Trump halted all inquiries (the New York Times)

Read: Who knew 401(k) plans could be envy-inducing? Some employers offer generous policies for their employees’ retirement contribution accounts, including high match percentages, nonelective contributions, and student loan matches. (the Wall Street Journal)

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People Person Podcast

On this episode of People Person, host and Morning Brew Inc.'s SVP Head of People Operations Kate Noel, speaks with Jenna Young, Senior Client Partner at Korn Ferry about the importance of PTO: taking it, not taking advantage of it, and how companies should actually be thinking about it for optimal employee performance. Plus, Jenna shares her idea for trading AI training with Summer Fridays.

Jobs

More focus, less fluff. CollabWORK filters out the noise and delivers jobs that actually match what HR Brew readers are looking for. Click here to see the full board of curated roles.