Total pay for outside directors at the nation's largest corporations increased by a modest 3% in 2017, driven by increases in cash and stock compensation, according to a new analysis by Willis Towers Watson, a leading global advisory, and solutions company. The study also revealed more companies are implementing annual limits on director compensation in the wake of shareholder lawsuits alleging that pay for board members is excessive. READ MORE
None of the state minimum wages provide a family living wage
Amid gridlock in boardrooms and Congress on proposals to improve worker pay and employment conditions, state governments have taken the lead, forcing companies to raise minimums and add benefits.
The big picture: Most states have enacted minimum wages exceeding the federal $7.25-an-hour rate that's been in place for nine years. But there is a wide range of hourly rates and working conditions, and none of the state minimums provides a living wage for a family, says Oxfam in a new national study. READ MORE
CEO vs. worker pay: Federal contractors have the biggest compensation gaps
American taxpayers are subsidizing wide gaps in compensation at major U.S. corporations that receive lucrative federal government contracts and subsidies, a new report shows. READ MORE
OFCCP Issues New Directive for Analyzing Compensation
Organizations doing business with the federal government may be subject to affirmative action requirements, overseen by the Office of Federal Contract Compliance Programs (OFCCP). In an effort to provide more transparency and efficiency in its compliance evaluations, the OFCCP recently issued a new directive providing information on how it will analyze contractor compensation. READ MORE
5 Tips for Developing a Compensation Strategy for Your Business
One of your goals as a small-business owner should be to recruit and develop a dedicated, hardworking team that serves the company well and contributes to its success. But if you don't put some serious thought into how you compensate your employees, you're likely to fail in that regard. That's why it's crucial to establish a well-thought-out strategy that serves your workers and your business well. Here's how to start. READ MORE
The economy is booming, your salary is not: Blame the decline of unions
In the past 40 decades, regular working Americans have barely seen their salaries grow, while around them, the cost of housing and basic needs have skyrocketed, as has pay for business executives. What’s behind this decline? Economists and political scientists often point to the decline of labor unions in those same years as a major contributing factor to the current environment of soaring business profits and meager worker salaries. READ MORE
CEO vs. worker pay: Federal contractors have the biggest compensation gaps
American taxpayers are subsidizing wide gaps in compensation at major U.S. corporations that receive lucrative federal government contracts and subsidies, a new report shows. READ MORE
Wage growth is soft due to declining worker bargaining power
Federal Reserve Chairman Jerome Powell said recently that low wage growth in the economy with historically low unemployment rate was a puzzle.
A former top Obama administration economist, a specialist in labor markets, said Friday that declining worker bargaining power was the answer. READ MORE
Americans Are Making Less Money Despite Trump’s Promises
President Donald Trump heads into a midterm referendum on his presidency showing no real progress on a core promise: to raise the wages of America’s “forgotten man and woman.”
Once the impact of inflation is included, ordinary Americans’ hourly earnings are lower than they were a year ago. READ MORE
IRS guidance on executive comp still leaves questions unanswered
The Internal Revenue Service’s initial guidance on the executive compensation deduction won’t settle all of the lingering questions. READ MORE
OFCCP Reins in Compensation Analysis by Rescinding Directive 307 and Issuing New Guidance
On August 24, 2018, the Office of Federal Contract Compliance Programs (OFCCP) rescinded Directive 3071 and its Obama-era procedures for reviewing contractor compensation systems and practices, and replaced it with a new directive under which OFCCP’s approach to compensation analysis is clarified and constrained.2 Although the new directive does not include a hoped-for safe harbor provision for contractors that undertake robust internal compensation audits and adjust compensation based on their findings, it does provide significant guidance to both OFCCP compliance officers and federal contractors about how compensation analysis will be approached and what contractors can expect. READ MORE
The Promotion That Comes Without the Pay Raise
More workers are facing the same dilemma: How do you respond when your boss offers you a nice new title, without a nice new raise to match?
Some 39% of employers often hand out promotions without a pay raise, up from 22% in 2011, according to a recent survey of 300 employers by the staffing firm OfficeTeam. Many employees are left wondering whether to swallow their resentment and accept the news, or push back for more money. READ MORE
Stagnant wages are a problem. Trump is the solution.
Since the 1990s, the share of national income going to working- and middle-class Americans has been dropping. For most of the post-WWII period, wage-earners captured 64% of the Gross Domestic Product (GDP). At the beginning of the 21st century, however, things started to change for the worse. In 2017, wages and salaries accounted for just 43% of the GDP. This is the lowest level since 1929. READ MORE
Fed Officials See Signs of Pickup in Wages
Federal Reserve officials saw signs earlier this month that wages are poised to accelerate, lending credence to the central bank's push to raise rates to head off a surge in inflation, according to meeting minutes released Wednesday. READ MORE
What’s Holding Back Wages in America?
America’s labor market is a jigsaw puzzle whose pieces don’t quite fit together.
Unemployment has plummeted to 3.9 percent, the lowest level since the early 2000s. Earnings calls are replete with chief executive officers bemoaning employee shortages. Small businesses are also feeling the pinch. In a July survey by the National Federation of Independent Business, 37 percent of owners reported at least one vacancy, and more than half said there were few or no qualified candidates for the job. READ MORE
LIVING WAGES AND WAGE INCREASE LAWS: WHAT THEY MEAN AND WHAT YOU CAN DO
When a worker has a living wage, it means they are earning enough money to cover standard living expenses in their area. This doesn’t just mean living above the poverty level; nor does it mean an extravagant style of living. The living wage model employed by the Massachusetts Institute of Technology (MIT) is described this way: READ MORE
IRS offers initial guidance on executive compensation rules
The Internal Revenue Service provided initial guidance Tuesday on how to deal with the rule changes surrounding the executive compensation deduction after passage of the Tax Cuts and Jobs Act last year. READ MORE
Higher Minimum Wages Blamed for Closure of Iconic NYC Coffee Shop
Before she was the rising star of the progressive left, Alexandria Ocasio-Cortez worked shifts at the iconic Coffee Shop in Union Square, Manhattan.
That espresso-sized biographical nugget tells you a lot about Ocasio-Cortez. It grounds her as a real woman of the people, for one. She's held a low-paying service sector job. She had to commute from the working class, minority community of the Bronx to fill the coffee cups of well-off New Yorkers living in Manhattan. Union Square might not be the Upper East Side, but the contrast with Ocasio-Cortez' neighborhood is still pretty stark. READ MORE
Fast-food chains to end ‘no-poach’ clauses that capped wages
Eight big US fast-food chains have agreed to end “no-poach” tactics that critics say have kept down wages and thwarted worker mobility for years. READ MORE
Some companies are bridging the gender pay gap
As the gender pay gap conversation grows louder, some companies are becoming more transparent with their pay practices, and making real change. READ MORE
