With Proposed Non-Compete Ban, The FTC Joins The Executive Compensation Regulatory Landscape

Employers are accustomed to following rules related to executive compensation from the DOL, IRS, and SEC.  It may be time to add a new acronym to the list – the Federal Trade Commission (“FTC”).

On January 5, 2023, the FTC proposed a new federal antitrust regulation that would ban almost all non-compete agreements for employees.  Citing authority under Section 5 of the FTC Act, the rule asserts that employee non-compete clauses amount to an “unfair method of competition.”  If enacted in its current form, the rule would broadly prohibit employers from entering into non-competes with workers across all industries and income levels – including those in the C suite. READ MORE

Elon Musk is currently working for Tesla for free. That could change

For the moment at least, Elon Musk is working at Tesla for free. Depending on how you look at it.

Musk still has the potential to continue pulling in staggering sums of money, thanks to Tesla, but not in the way that his regular workers make their money. That’s because the CEO hasn’t taken any kind of cash salary since 2019, when he only received $23,760, which was required under California minimum wage law. READ MORE

Pay Attention to State Pay Transparency Laws When Posting Jobs

As the workforce and lawmakers push for advancements in employee rights, employee-friendly regulations are popping up across the US.

Several states and localities have enacted pay transparency laws, typically requiring employers to disclose pay ranges and benefits information in job postings. By making pay and benefits public information, these laws are paving the way for pay equity. READ MORE

Could New York See a $21.25 Minimum Wage?

If Gov. Kathy Hochul has her way, New York State’s minimum wage will rise to more than $16.39 between now and 2026 and remain indexed to the rate of inflation or 3%, whichever is less.

If progressive groups and their allies in the legislature have their way, the state’s minimum wage will rise to $21.25 by that year and then be indexed annually to increases in prices and labor productivity. READ MORE

How Much You Take Home from the Average Salary in Each State

Your salary might look great on paper until you get your paycheck after taxes are taken out, and then it might look a whole lot different. Since income tax rates vary from state to state, the amount you lose will fluctuate depending on where you live. In  Florida, for example, only 17.12% of your paycheck would go towards taxes. In Hawaii, on the other hand, taxes take a whopping 28.06% of your total paycheck. READ MORE

Southwest Airlines set to cut executive bonuses in response to December meltdown

In the aftermath of Southwest Airlines' December meltdown, company executives acknowledged that their compensation packages were due to be cut as part of the carrier's response.

Answering questions from reporters after hours of testimony before the Senate Commerce, Science and Transportation Committee on Thursday, Southwest chief operating officer Andrew Watterson said executive bonuses were set to be reduced this year. READ MORE

How new SEC rules impact compensation committees’ 2023 agendas

The SEC adopted three new rules in 2022 that significantly expand compensation committees’ agenda for this year. The rules cover pay versus performance, clawbacks and insider trading.

Two of these rules – those on pay versus performance and clawbacks – were mandated by the Dodd-Frank Act. They do not represent new concepts as they were initially proposed by the SEC in 2015. In addition, the changes to the insider-trading rules codify some of the existing best practices related to Rule 10b5-1 plans and introduce new executive compensation disclosures related to insider trading. READ MORE

How Employers Are Managing Compensation Challenges in 2023

With 2023 well underway, many employers are still trying to find the right levels of pay for their employees. The stakes are high: If employers don't get compensation right, they may find themselves losing out on talent.

The quest to attract and retain talent over the past year has already caused employers to push pay levels higher than initial projections. Data from consulting firm WTW shows that 70 percent of U.S. employers spent more than they expected to adjust employees' pay levels last year. Now, there are signs that this trend may continue in 2023. READ MORE

Merit increases spike, but is HR really ready to talk about pay?

While it may not come as much of a surprise—considering the national unemployment rate of 3.4% is at its lowest since 1969—employers looking to keep much-needed talent in the fold are turning to merit raise increases as a primary retention strategy, according to a recent survey. However, employers have their work cut out for them when it comes to designing and communicating about changing pay practices. READ MORE

Companies are using layoffs to cut new-hire salaries and win back the power they held before the pandemic

In late 2020, Keri B., a recruiter, was working with a professional-services company that was desperate to hire.

It was so eager, in fact, that the candidate she placed managed to negotiate a starting salary that she said was $20,000 more than their new boss was making. "That was the first time that I was like, 'Wow, this is crazy,'" Keri, whose last name and place of employment are known to Insider, said. "I'm seeing people who are new grads just out of school getting really, really high salaries." READ MORE