Coronavirus (COVID-19) raises serious concerns for employers of all shapes and sizes, across all industries and in every business sector. As the impact of COVID-19 continues to grow, many employers are faced with new challenges that affect not only their businesses and their employees, but the health and welfare, retirement and executive compensation plans and programs on which those employees rely. These new issues are arising in addition to the myriad benefit plan challenges that employers face each day. READ MORE
Impact of the CARES Act on Executive Compensation
The CARES Act restricts how much executive compensation can be paid by employers that avail themselves of loans and loan guarantees from the US Treasury’s Exchange Stabilization Fund under Title IV of the CARES Act. Employers seeking this relief need to carefully assess the impact of these restrictions before applying for loans or loan guarantees. Participation in the Exchange Stabilization Fund is conditioned on complying with the executive compensation restrictions. Identifying whose pay will be restricted and limiting payments under existing contracts is likely to be challenging. READ MORE
If you're 'essential' enough to work through a coronavirus pandemic, you're essential enough to be paid living wage
My first trip to Trader Joe’s since the start of California’s coronavirus lockdown had all the trappings of order and security. A polite line formed out front, with everyone keeping a respectful and socially distant 6 feet apart. No more than 50 people were allowed in the store at the same time. A worker squirted a dollop of sanitizer into the hands of each and every shopper entering the store. Another wiped down the handles of each shopping cart before use. READ MORE
Coronavirus Stimulus, Executive Compensation, and Share Repurchase
Congressional leaders are currently debating a stimulus to address the economic downturn caused by the coronavirus pandemic. Executive compensation in companies that receive the stimulus funds has become a point of major disagreement. Policymakers are concerned that stimulus funds should be used to safeguard the solvency of these companies and paychecks for the rank-and-file employees, and not be used to increase executive compensation. READ MORE
The disturbing history of tipping: "It's literally a slave wage"
The act of tipping is said to have started in feudal Europe, when strict social hierarchies prevented any real kind of social mobility and it was a common practice among aristocrats to tip servants. It wasn't brought over to the U.S. until the 19th century, and was only popularized after the Civil War. But in this country, instead of being additional compensation on top of a regular wage, it functioned as an immediate and racist solution for employers who did not want to pay recently freed black slaves. READ MORE
Oh, No! Better Unemployment Benefits Raise Low Wages
The Republican senators who tried a last-ditch effort to water down the stimulus bill had one major concern: If federal unemployment benefits were increased, companies that depend on low-wage labor might have trouble coaxing people back to work for a pittance. Oh, the horror! READ MORE
Fareway grocery announces bonuses and additional compensation to frontline workers
Fareway Stores, Inc. announced its Fareway Family Frontline Plan to provide cash bonuses and additional paid time-off for its hourly employees Thursday. READ MORE
Work from Home Policies During COVID-19
Given the number of states that have already ordered the closure of non-essential businesses due to the COVID-19 pandemic, employers fortunate to remain operational are likely dealing with the myriad challenges of a remote workforce. READ MORE
Why CEOs are giving up their salaries during the coronavirus crisis
Coronavirus has hit companies hard and fast over the past several weeks — prompting calls for industry bailouts and dramatic measures to cut costs. Among the steps some major corporations are taking to mitigate the consequences of the outbreak are pay cuts to CEOs and other top executives. READ MORE
Recommendations for Compensation Committees During the COVID-19 Crisis
As discussed in our March 20, 2020, client alert “Thoughts for Boards of Directors on the COVID-19 Crisis,” COVID-19 is testing the oversight skills of boards of directors as companies come to terms with the new normal in the midst of this global pandemic. READ MORE
Senate coronavirus bill would cut pay for executives making more than $3 million if they take a loan from taxpayers
The $2 trillion coronavirus rescue package passed late Wednesday by the Senate would cut the compensation for the highest-paid American executives if their companies accept financial assistance from the federal government. READ MORE
GOP senators warn they will oppose coronavirus bill unless ‘massive drafting error’ fixed
Four Republican senators are warning that they will oppose the $2 trillion coronavirus response package unless a “massive drafting error” in the legislation, which they say would create an incentive for employers to lay off employees, is fixed. READ MORE
Coronavirus fallout revives talk of 'universal basic income'
The scoffed-at idea of paying everyone a basic income as machines take people's jobs is getting a fresh look as a possible remedy for economies cratered by the coronavirus pandemic. READ MORE
White House, Senate strike deal on historic $2T coronavirus relief bill; Pelosi offers tepid endorsement
Senate Minority Leader Chuck Schumer, D-N.Y., said the bill amounts to “unemployment compensation on steroids," and that every American who is laid off will have their missed salary remunerated. That provision will enable companies to stay afloat and immediately bring back those employees when things are safe, Schumer said. READ MORE
The COVID-19 pandemic: key employee benefits and compensation issues to consider during
The novel coronavirus (COVID-19) pandemic raises many employee benefit and compensation considerations for employers. We examine key issues relating to COVID-19 and provide suggested strategies for employers to prepare for these issues. These are uncertain times, and we anticipate that we may need to revise our thinking or make additions to this list as additional guidance is issued. READ MORE
COVID-19 Impact on Executive Compensation (Leave of Absence)
COVID-19 has had significant impacts on all aspects of business. While employers are assessing how to handle immediate employee needs related to sick leave, family leave and benefits claims, employers should also consider the impact that changes in their workforce or economic conditions will have on their compensation plans and programs. READ MORE
Companies Help Hourly Workers Get Through COVID-19
Eight in 10 CFOs say they'll offer benefits and/or monetary compensation that exceed their contractual obligations to hourly employees. READ MORE
Bonuses and pay hikes: How grocery stores keep workers on the front lines
A wave of top US retailers and grocers are giving cash bonuses and wage hikes to their cashiers, stockers and warehouse workers on the front lines of the coronavirus crisis. READ MORE
Coke, Disney Shareholders Anchoring a Renewed Movement Against Excessive CEO Pay
It's hardly a new complaint. Indeed, the headlines raging against shockingly big paychecks collected by United States CEOs have been regularly recirculated for years. This time, though, against a backdrop of consumers' concern over online privacy and frustration over lingering inequality, efforts from Walt Disney (NYSE:DIS) and Coca-Cola (NYSE:KO) shareholders have finally struck a receptive nerve that will incite actual change in how corporate chiefs are compensated. AT&T (NYSE:T) shareholders may be ready to jump on the bandwagon, too, after learning its CEO John Stankey received a 36% raise last year despite a string of corporate failures. READ MORE
Executive And Physician Compensation, Benefits And Contract Issues In The COVID-19 Era
As the Coronavirus (COVID-19) crisis unfolds, human and economic resources are and will be strained. Hospitals and health systems must be prepared to address the executive and physician compensation, benefits and contract issues that are very likely to follow. We offer a list of such issues and considerations that can help hospitals and health systems anticipate and address current and potential challenges. READ MORE