By John E. Thompson
Expectations are that the U.S. Labor Department’s proposed regulations re-defining the federal Fair Labor Standards Act‘s executive, administrative, professional, outside-sales, and derivative exemptions will be released in the next few weeks, if not within days.
As we have said, these provisions will probably include:
- A substantial increase in the minimum salary amount; and,
- A significant narrowing of the duties-related requirements. Read more…
Last week, compensation solutions expert PayScale released its annual 2015 Compensation Best Practices Report.
PayScale titled its report Attack of the Out-of-Date Comp Plan (cute, huh?), because they believe:
- Compensation data gathered in real time (versus “aged” data) is needed to make the best compensation decisions; and,
- No company can afford to not understand that, lest said company find itself a victim of its own out-of-date business practices. (At least that’s what I think they believe.) Read more…
In case you haven’t been on the Internet in the last 36 hours, Patricia Arquette is being celebrated for more than just her Oscar win for Best Supporting Actress in Boyhood.
During Sunday night’s live Academy Awards telecast, the seasoned performer stood up for women everywhere, making a rousing plea to take action about the notorious gender pay gap.
The problem of pay disparity between men and women in Hollywood was already in the public eye thanks to the high-profile cyber-attack against Sony last December. Read more…
By John E. Thompson
A recent post appearing on the U.S. Department of Labor’s blog begins, “The federal tipped minimum wage has been $2.13/hour since 1991. That’s right – it’s been the same for nearly a quarter century.”
Actually, that’s wrong.
As we explained previously, there is no such thing as a purportedly lower “tipped minimum wage.” The federal Fair Labor Standards Act’s minimum wage for tipped employees is precisely the same as for all other non-exempt, non-tipped workers: $7.25 an hour at present. Read more…
Picture the scene: Your company is seeking to employ a Department Manager, and the leading candidate is currently “in transition.”
Human Resources has pegged the market value of the job at $75,000, but you suspect that the preferred candidate (Bob) will accept $65,000.
A seasoned and experienced professional, Bob was previously paid $77,000 by his last employer, but was caught up in a restructuring staff reduction. He’s been out of work for almost a year and is getting desperate, worried about feeding his family and paying the mortgage.
When the decision point arrives other, less qualified candidates are already making $70,000 and are asking for $75,000 and up. Some hiring managers would look at this situation as a no-brainer. “Let’s hire Bob and save $10,000 to $15,000” would be the smug decision. Read more…
Across the U.S., employers and the agencies that help them fill jobs are feeling increasing pressure to raise pay for workers with special skills.
Although hiring in many parts of the country and for certain sectors — manufacturing being one of the more frequently mentioned — was strong the last several weeks, growth nationally was generally minimal, the Federal Reserve said in a report on economic conditions released today.
The Fed’s so-called Beige Book summarizes reports from business and employment contacts in the 12 Federal Reserve districts to provide a ground level view of conditions. Read more…
Employees in New York and California are being cheated out of millions in wages by their employers, a new study reveals, and the U.S. Department of Labor wants to find more employers who are skirting the law.
The wage study was conducted by the Eastern Research Group and commissioned by the Labor Department to measure the possible socio-economic impacts of minimum wage violations in California and New York. These two states were selected for the study because of their large workforce. Read more…
Promotions are a form of reward, even though they don’t always jingle like direct cash.
A jump in title status alone is sometimes enough to be strong motivation for greater employee engagement. Psychic income, whether intrinsic or extrinsic in origin, should count as compensation, anyway, since it is part of the employee value proposition.
Movement into a higher pay classification generally means more aggressive raises, too. And when a promotional increase accompanies hierarchical advancement, the positive consequences are even greater. There are also situations when promotions are used as rewards in place of any formal pay for performance program. Read more…
By John E. Thompson
Earlier this month, several states and localities voted in favor of increasing their minimum wage.
Right on cue, many (including U.S. Secretary of Labor Thomas Perez) seized upon these results as ostensibly supporting an increase in the federal Fair Labor Standards Act‘s rate to $10.10 per hour.
On the contrary, the developments emphasize that no such nationwide action is either wise or warranted. Read more…
A news story about optimistic pay trends claims to find signs of an impending upsurge in base hourly rates.
Conceding that this is not the consensus opinion among experts (“Government data show wages rising at only about 2 percent per year, which is roughly the same as inflation, meaning typical workers aren’t really getting ahead”), the article gives links to the study that offers a more positive view. Read more…