By Joni L. Andrioff
In September, the Securities Exchange Commission approved proposed rules on calculating the ratio of the chief executive officer’s total annual compensation to the median total annual compensation of all employees, as mandated by section 953(b) of the Dodd-Frank law.
Specifically, the Proposed Rules, which span 47 pages of the Federal Register, require proxy disclosure of the median annual total compensation of all employees other than the CEO, and the ratio of that median employee compensation to the CEO’s annual total compensation. The Proposed Rules also request comments from the public on no less than 60 different issues in calculating the CEO pay ratio. Read more…
By Carmon M. Harvey
Gone are the days where the young people of the world are willing to work for peanuts (or less) to beef up their resumes with “internships.” They now increasingly are insisting – often through litigation – on being paid a minimum wage and overtime for that experience.
As my colleague, Dan O’Meara, recently was quoted in a Forbes.com article on this topic, “No good deed goes unpunished.”
While we can question whether kids these days have any work ethic and whether offering those “kids” the opportunity to put in long hours for little or no pay is really a “good deed,” the idea that individuals should be paid for work performed is not a new or novel concept. Read more…
Recently over on Compensation Cafe, I shared the story of one team of highly skilled professionals in one very large organization and how a sole focus (poorly implemented) on compensation as a substitute for true recognition affects their daily motivation and engagement.
Specifically, I focused on three (3) lessons learned from these bad practices:
- Moving the merit target.
- Hitting the pay range ceiling.
- “Promoting” to salary but reducing earnings. Read more…
By John E. Thompson
One of the U.S. Department of Labor‘s continuing federal Fair Labor Standards Act enforcement initiatives targets hotels and motels.
Officials are following-through on their 2010 warning that they see the hospitality industry as presenting a “high risk” for non-compliance.
Here are some recent outcomes: Read more…
So how would you feel if everyone at your company knew your exact salary, and vice versa? Do you think the advantages would outweigh the disadvantages?
This has been a frequent topic in the press lately since companies like Buffer and SumAll have publicly endorsed the practice. Proponents of salary transparency argue that it has a number of benefits, including determining employees’ value to their company, scrutinizing inflated executive salaries and eliminating a salary gender gap.
In countries such as Sweden and Norway, where residents’ tax returns are available to the public, salary transparency seems as though it would have a shorter road to travel toward gaining acceptance. But in the U.S. and U.K., the thought of openly sharing one’s salary info still seems a little too personal. Read more…
By. John E. Thompson
A U.S. Department of Labor announcement serves as a reminder that violations of the federal Fair Labor Standards Act can result in more than just back-wage payments and other civil remedies.
According to the Wage and Hour Division, a company, the owner, a plant manager, and an office manager were convicted of separate felony counts arising out of two investigations that disclosed “repeat and willful” FLSA violations and other transgressions. Additional remedies imposed included more than $165,000 in restitution for unpaid overtime and for liquidated damages, $12,100 in civil money penalties, and a fine of $10,000.
The individuals were said to have been sentenced to time served, plus probation. Read more…
Many “dumb questions” are voiced in response to management orders, so be charitable when you encounter an overly basic query from people who are supposed to know better.
For example, a question about Canadians being treated exactly like Americans for overtime purposes was raised a while ago in a LinkedIn professional discussion forum.
Since the two nations have very different laws governing overtime, the answer seemed simple. But it brought this private response: “Thanks Jim – My thoughts exactly, but I was asked to do the research.” Read more…
Editor’s Note: Sometimes readers ask about past TLNT articles. That’s why we republish a Classic TLNT post every Friday that some of you have requested.
Ever think about offering a bonus for employees to quit your organization?
Zappos has – and it’s an interesting case study, particularly as the bonus opportunity is part of its unique onboarding process.Zappos is known for its unique culture and, not surprisingly, it screens job applicants carefully for cultural fit.
Those that don’t pass the cultural fit screening aren’t hired, no matter what skills and capabilities they bring to the table. Those that do progress to the company’s training program. Read more…
By John E. Thompson
Employers sometimes pay workers more than the federal Fair Labor Standards Act requires.
Of course, some do so as a matter of choice.
However, in other situations, this happens because management misunderstands what its legal obligations are. Among the potentially expensive misconceptions about the FLSA’s principles are: Read more…
Nice guys finish last. We’ve all heard that phrase before. Which probably means that there’s something to it.
Now why is that?
Because we’ve seen it happen, haven’t we? Again and again.
In the work environment all too often the steady and reliable performers — those who follow the policies and procedures, who stay on the right side of ethical dilemmas and controversy, the “nice guys” that every manager would like to have on their team — they can come up short when recognition and rewards are being passed about. Read more…