With the March 16, 2020 effective date of the new rule interpreting joint employer status under the Fair Labor Standards Act (“FLSA”) almost upon us, employers should brush up on the updated guidance and review their relationships with workers to ensure compliance. Otherwise, they may face the expensive possibility of being held jointly and severally liable under the FLSA for all of the hours the individuals worked in the workweek, including hours worked for a different company. READ MORE
2 senators introduce bill to curb executive retirement plans
Two senators introduced a bill that would increase oversight on non-qualified deferred compensation plans, or executive retirement plans, and limit tax benefits for deferred compensation. READ MORE
Gender Pay Equity Analytics: A Case Study of a Large Multinational Company
The gender pay gap is a key metric of workplace inequity. There is a large and growing body of literature on the gender pay gap, particularly in the United States; however, there is scant documentation of internal company practices regarding gender pay equity and company-specific estimates of gender pay ratios. READ MORE
Proposed 162(m) Regulations Add Another Layer of Executive Compensation Issues in M&A
The Tax Cuts and Jobs Act of 2017 (TCJA) upended public company compensation structures nationwide. Prior to the TCJA, Section 162(m) of the Internal Revenue Code of 1986, as amended, generally provided for a $1 million annual deduction limit for compensation paid to certain executives (usually the top five to seven executives at large public companies). READ MORE
This startup wants workers to get access to their wages before payday
Imagine you have an electric bill due Wednesday, but you don’t get paid until Friday. Then you got a flat tire. You need to fix the car to make it to work for the rest of the week, and you also still need to buy groceries. That bill payment will have to wait, which means you could end up with a penalty, a ding against your credit score, or even with your lights shut off. READ MORE
CEO of nonprofit resisted calls to reveal details about $7.5M pay
In documents filed late Thursday with the Florida House, a former board member of the Florida Coalition Against Domestic Violence alleges that former CEO Tiffany Carr worked aggressively to shield details of her salary from disclosure. READ MORE
California university fired 54 grad students who were striking for higher pay
Fifty-four teaching assistants at the University of California, Santa Cruz were fired after they refused to turn in final fall grades as part of an ongoing strike for higher wages. READ MORE
Mayor Pete Buttigieg butts in on McDonald's workers' minimum wage protest — then the protest turns on him
Democratic presidential candidate Pete Buttigieg, the former mayor of South Bend, Indiana, can't seem to avoid awkward moments with black voters. READ MORE
Salary History Can’t Defend Lower Pay
Employers can’t use a worker’s salary history to justify paying her less than male peers, the full Ninth Circuit ruled in a case that could force the U.S. Supreme Court to reckon with a defense to Equal Pay Act claims that critics say perpetuates gender inequities. READ MORE
Sanders Takes Aim at Deferred Compensation
The current Democratic presidential front-runner is now going after tax breaks for deferred compensation as part of his plan to rein in “corporate America.” READ MORE
New study says these are the 10 most ‘overpaid’ CEOs in the S&P 500
A new report has called out what it describes as “the 10 most overpaid CEOs” in the Standard & Poor’s 500 Index. READ MORE
Paid Leave and the Composition of Compensation
Despite recent stock market jitters related to the coronavirus, the U.S. economy is doing well. Wages are growing, especially for lower-income workers, and unemployment is low. Yet calls are intensifying for the federal government to implement paid leave, which may unwittingly hurt those whom the program claims to help. Supporters often resort to the same misleading notions to make their case -- misperceptions that must be continuously debunked, lest they lead to unnecessary harm to working families. READ MORE
A New Framework for Executive Compensation
The nature of change in business today differs from the past in both magnitude and pace: Technology is disrupting fundamental business models, forcing transformation across whole industries. According to a 2019 Accenture study, 71 percent of 10,000 companies in 18 industry sectors are “either in the throes of or on the brink of significant disruption.” Similarly, McKinsey concluded a major study of automotive, electronics, aerospace, and defense industries, saying, “The industrial sectors will see more disruption within the next five years than in the past 20 years combined.” READ MORE
More CEOs are under pressure to do better by the world. But it's complicated.
That means doing all of the following and more: Go green. Do business more ethically, humanely and sustainably. Treat employees well and pay them fairly. READ MORE
Why the average male can no longer cover basic expenses for his family
CBO: Raising the federal minimum wage would lift millions out of poverty — but there's a downside
Amid all of the changes in the U.S. over the last decade, one thing has remained steady: the federal minimum wage, which has sat at $7.25 since July 2009. READ MORE
2019 Wage & Hour Developments
A Year in Review - State Updates READ MORE
When it comes to raising the minimum wage, most of the action is in cities and states, not Congress
The federal minimum wage has stood at $7.25 an hour since July 2009. Given the partisan split between the House and Senate, it seems destined to remain there for the foreseeable future, despite broad public support for raising it. But in some ways, Congress’ deadlock is almost a side issue to the main debate: For the past decade or so, most of the action on minimum wages has been in states, counties and cities. In Virginia, for instance, lawmakers recently approved legislation to raise the commonwealth’s minimum wage, though the Senate and House of Delegates need to reconcile their differing versions. READ MORE
More pension funds, managers targeting excessive CEO compensation
More pension fund officials and asset managers are holding companies accountable for excessive compensation but could be doing more, according to "The 100 Most Overpaid CEOs" report issued Tuesday by advocacy group As You Sow. READ MORE
The facade of a minimum wage increase
The current Democratic front-runners in the 2020 presidential race, Amy Klobuchar, Elizabeth Warren, Bernie Sanders, Joe Biden, and Pete Buttigieg, each hold common ground on one particular policy: Raising the minimum wage to $15 an hour. READ MORE