On May 20, 2020, the U.S. Department of Labor (DOL) issued a Final Rule expressly permitting employers to provide additional pay, such as bonuses, commissions, or premiums, to employees when utilizing the “fluctuating workweek” (FWW) pay method under the Fair Labor Standards Act (FLSA), without jeopardizing the use of that pay method. READ MORE
Avoiding COVID-19 Wage & Hour and Labor Law Pitfalls
In Part Eight of our Roadmap Series, we take a closer look at wage and hour compliance concerns that may arise during the COVID-19 pandemic, and what employers can do to minimize these pitfalls. READ MORE
As Employers Cut Coronavirus Hazard Pay, What About A Living Wage?
As more Americans emerge from their homes and resume their day-to-day routines, there is a new casualty stemming from the coronavirus — hazard pay. READ MORE
Reassessing Executive Compensation and Benefits in Tax-Exempt Organizations as the COVID-19 Crisis Deepens
Hospitals, health systems and other tax-exempt organizations are responding to a longer and deeper economic crisis by making or considering significant changes to their executive compensation and executive benefit programs. The economic crisis, and these executive compensation and benefit changes, have far-reaching implications for the ongoing work of the board’s compensation committee. We want to provide this review of what we see happening “on the ground” as the crisis continues. READ MORE
What the Media’s Most Powerful Executives Were Paid in 2019
Media chieftains don’t suffer from low self-esteem. Industry titans including Bob Iger, Reed Hastings and Rupert Murdoch probably need big egos to believe they’re entitled to make far more than most CEOs at similarly sized companies — and much more for 12 months of work than an average employee could make in several lifetimes. READ MORE
Walt Disney's grandson slams company's bonuses for managers while workers are furloughed
Another heir of Walt Disney is publicly expressing disgust with the company his grandfather founded for furloughing thousands of workers while continuing to pay its executives millions of dollars and massive bonuses. READ MORE
Reducing Salaries of Exempt Employees under the FLSA
As daily headlines have shown, the economic fallout from the COVID-19 pandemic has led businesses of all types to announce dramatic changes in workforce levels and employee pay. Many of these companies have made the decision to reduce the salaries they pay to their exempt employees. These reductions, which often range from 10 percent to 30 percent, have affected executives, managers, and professionals. On the positive side, salary reductions give employers an option for reducing labor costs that preserves more jobs and mitigates the loss of skilled employees. READ MORE
Many low-wage workers earn more on unemployment than in their former jobs
For millions of employees who have lost their jobs during the coronavirus pandemic, unemployment may end up paying better than employment. New research shows that, for many low-wage workers, enhanced jobless benefits paid out through federal stimulus measures will exceed their previous paychecks. READ MORE
Companies Are Quietly Pulling the Plug on “Hero Pay” for Essential Workers
The coronavirus pandemic has highlighted a major modern contradiction—many "essential" workers, the ones whose jobs are too important to shut down, are the ones making the least money. Meat processing, for example, is a job that pays poorly and is riddled with danger. And yet it's been deemed so important that Donald Trump used the Defense Production Act to order that plants stay open. READ MORE
The Pandemic's Impact on Compensation and Benefits
Disruption in business operations by the pandemic has increased the need for employers to focus on compensation and employee benefits. Developing a comprehensive business response will involve benefits plans and more broadly the compensation philosophy employers will adopt. The CARES Act provided some additional flexibility, but this entire area is otherwise heavily regulated, and any contemplated change should be approached with caution. READ MORE
JCPenney Paid Top Execs Huge Bonuses Before Firing Workers, Edging Toward Bankruptcy
In March and April, retail sales in the U.S. saw the worst two-month decline in history (8.3 percent in March and 16.4 percent in April) due to the coronavirus pandemic. The retail apocalypse has pushed a slew of iconic American retailers to the brink of bankruptcy. READ MORE
Guide to Executive Compensation: Understand the Rules, Regulations and Practices Governing This Area
Executive compensation has become one of the main targets of investors, and government regulators. The "Executive Compensation" book is an invaluable guide through the maze of rules, regulations and practices that governs this area. READ MORE
Employee Stock Compensation Plans and Market Downturns
There’s a lot of talk going around about a nasty stock market drop and coming recession. Even though the market seems to be less volatile at this point, many market watchers warn there could be a reckoning, especially if we see another wave of COVID-19 infections. The economic implications of even our relatively brief shutdown are also likely to have an impact for at least the next few earnings cycles. READ MORE
COVID-19 Impact on Executive Compensation – Amending Performance Goals under Equity and Other Incentive Awards
We continue our blog series on COVID-19 implications on executive compensation matters with a post that addresses considerations relating to amending performance goals under equity and other incentive awards. READ MORE
Does It Make Sense to Consider a Secular Trust for Deferred Compensation
The purpose of this Post is to highlight the question of whether, in today’s economic environment, deferred compensation monies should be secured with a secular trust. This Post is Part 7 of a 7-Part series addressing compensation adjustments that Compensation Committees could consider in order to continue to incent and retain their executive officers in today’s economy. READ MORE
Jeff Bezos could become world's first trillionaire, and many people aren't happy about it
We already have trillion dollar companies. How soon before we have our first trillionaire? READ MORE
Big Uber Shareholders Rebel on CEO’s Huge Pay Package Amid Coronavirus Layoffs
At Uber’s 2020 shareholders meeting on Monday, a group representing large Uber shareholders took issue with how much the ride-sharing giant is paying its CEO Dara Khosrowshahi while the company slashes thousands of jobs and its contractor drivers struggle to make ends meet amid the coronavirus pandemic. READ MORE
Performance-Based Compensation and the Coronavirus: 10 Key Questions
Economic disruptions resulting from the COVID-19 pandemic have caused many employers to make changes to employee compensation, such as reducing or deferring base salaries, as part of cost-cutting measures. READ MORE
Key executive compensation issues to consider during an economic downturn
In response to the current health and financial crisis caused by COVID-19, many US-based employers are assessing measures such as employee furloughs, layoffs, and adjusted executive compensation arrangements. In this article, we highlight some of the key risks and issues employers are encouraged to consider as they engage in executive compensation planning strategies, from the impact of furloughs on equity award vesting to changes to compensation and severance policies. READ MORE
CARES Act Allows Employers to Defer Employer Portion of Social Security Payroll Taxes
Under the Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law on March 27, 2020, businesses may delay paying the employer portion of the Social Security payroll taxes on wages paid. READ MORE