Good morning. Corporate America’s diversity initiatives are here to stay, reports Risk & Compliance Journal's Richard Vanderford, but they are being adjusted in response to lawsuits and intense scrutiny.

• How are they changing? Businesses are trying to fashion programs that foster inclusion without running afoul of the law and potentially bringing costly consequences, according to lawyers and corporate advisers working on such policies. That means some are abandoning the most legally risky and potentially discriminatory practices, such as numerical targets that can be seen as “quotas” or the use of unconscious bias training that casts blame.
   
• Where did the impetus come from? Legal pressure following last year’s Supreme Court decision to strike down affirmative action in college admissions has led to, if not a retreat from DEI programs, a rethink in how to best approach them.
   
• What got some in trouble? “Frankly, employers got really comfortable doing some things that were questionable,” said Johnny Taylor Jr., an employment lawyer who heads the Society for Human Resource Management, a trade group for human resource executives. 

For more on the DEI controversy: 

• Mark Cuban Enters Elon Musk’s Echoverse of Madness

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Justice Department charges three people in $400 million FTX mystery hack.

Federal investigators appear to have cracked the mystery of who hacked into crypto exchange FTX to steal more than $400 million at the time of its collapse in 2022.

The Justice Department charged three people last month with a phone-hacking scheme that included the hack and heist of Sam Bankman-Fried’s onetime company, according to people familiar with the matter.

• Federal prosecutors have charged members of Iran’s Revolutionary Guard in multiple cases related to trafficking of Iranian oil.
   
• Fan Bao, a veteran Chinese dealmaker who was taken away by Chinese authorities last year, has resigned from his firm.
   
• Federal authorities have been investigating sexual assault and sex trafficking allegations against WWE co-founder Vince McMahon, according to people familiar with the investigation.
   
• Fulton County District Attorney Fani Willis confirmed a romantic relationship with a top deputy working her criminal case against Donald Trump but said it didn’t create a conflict of interest, forcefully rejecting the notion that she should be disqualified from the case.
   
• Minimum wage for California fast-food workers is set to rise to $20 an hour in April, a 25% increase from the state’s broader $16 minimum wage.

U.S. pairs military action with diplomacy in effort to reshape Middle East.

The U.S. is facing monumental challenges as it deepens its diplomatic and military involvement in the Middle East to try to bring an end to the brutal war in Gaza and roll back Iranian influence.

What it faces. On the military front, the U.S. has sought to buy time for its diplomacy by keeping Iran’s proxies at bay, a mission that led Friday to the Biden administration’s strongest response to date against Tehran-backed militias in Iraq and Syria that was followed with strikes against the Houthis in Yemen the next day.

• U.S. Leads New Strikes on Houthis
• U.S. Plans Further Action Against Iran’s Militia Allies

• A toxic train derailment in Ohio last February resulted in pledges from railroad executives to overhaul safety in the industry. One year later, legislators, rail workers and East Palestine residents say that little has changed, and data show an increase in the number of some types of accidents.
   
• Forest fires roared across a heavily populated swath of central Chile, killing about 100 people and destroying some 3,000 homes, according to government officials. The destruction is disrupting Latin America’s most market-friendly economy.
   
• Hundreds of thousands of residents were without power after trees and electrical lines were downed by hurricane-force winds and roads were flooded across California.
   
• Boeing is reworking 50 undelivered 737 MAX jets after a supplier’s employee recently found misdrilled holes on some fuselages, a new production snafu for the aircraft manufacturer.

Jobs growth of 353,000 blasts past expectations as labor market stays hot.

Hiring is booming, defying expectations the economy would cool after going gangbusters last year.

How much of a hiring boom? Employers added 353,000 jobs last month, the Labor Department reported Friday. That was the strongest in a year and nearly double what economists surveyed by The Wall Street Journal expected.

• Powell Says Fed Has New Focus: When to Cut Rates

• As Israel and the U.S. wrestle over a deal to free the remaining hostages in Gaza and bring an end to the war, the biggest obstacle could be a media-savvy lawmaker who has become a lightning rod for Israel’s far right.
   
• The Senate released Sunday the long-awaited details of a sprawling bipartisan bill designed to both sharply cut down on illegal border crossings and bolster embattled allies Ukraine and Israel.
   
• Airline safety incidents in Russia are surging as the country struggles to source spare parts and conduct proper maintenance.
   
• Tesla board members have reaped hundreds of millions from stock awards and separate investments, even as some have done drugs with Elon Musk. Former Tesla director Larry Ellison offered Musk a chance to dry out.
   
• Facebook, the brainchild of Mark Zuckerberg, turned 20 years old on Sunday.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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