What if the U.S. had a national maximum wage?

As employee pay remains stagnant in the U.S. and inequality worsens, lawmakers, activists and workers have been advocating for a higher minimum wage. The push gained momentum in recent years through movements like the Fight for $15, which backed this week’s McDonald’s strike. 

Congress last raised the federal minimum wage 14 years ago, the longest period on record without an increase. Some Democrats tried unsuccessfully to include a hike in Congress’ latest COVID-19 relief package, although President Joe Biden was able to raise the minimum wage to $15 an hour for federal contractors through executive order. 

But what if we looked at the inverse of this, as Dennett asks, and put a cap on how much corporate executives make?  READ MORE

The hypocritical attack on CEO pay

Institutional investors are busy protesting against executive pay. In the US, pay packages at public companies have received their lowest approval levels since votes became mandatory 10 years ago. In the UK, the average proportion of No votes has reached its highest level in at least seven years. Pay revolts are very much in keeping with the ESG zeitgeist. And disinterested observers can be pleased there is resistance to chief executives earning massive multiples of average wages at a time of global suffering. READ MORE

Preparing for New Tax Laws

The winds of political change bring with them the potential for consequential revisions to the tax code. As anticipated, in late April President Joe Biden unveiled a number of significant proposed changes to the individual tax provisions. As with proposed revisions to the corporate code made several weeks earlier, these potential increases would fund an ambitious, multi-trillion dollar “Build Back Better” spending plan.

To be clear, the ultimate forms these proposals take and their political pathways remain uncertain. We do believe, however, it is likely some changes will be enacted. READ MORE

The battle for a $15 minimum wage is already won

Democrats in Congress will probably fail to pass a federal $15-an-hour minimum wage. Amazingly, this might end up not mattering that much. The drive for $15 has succeeded simply by resetting Americans' idea of what a reasonable wage should be.

In an age of grassroots political campaigns, the Fight for $15 has been startlingly effective. It succeeded in getting a $15 minimum wage passed in Seattle, in California, and in a variety of other cities and states. Its message was simple, focused and — at least in the places where it has prevailed — reasonable. READ MORE

Where U.S. Tech Salaries Are Growing Fastest

Dice has released its latest Tech Salary Report which is based on a survey of 9,000 employed technologists across the United States. It notes that despite the significant changes brought about by the Covid-19 pandemic, the traditional principles driving salary growth have remained firmly in place. This was demonstrated by the fact that the average U.S. tech worker salary climbed 3.6% between 2019 and 2020 to reach $97,859, even though organizations tightened their budgets. The skills and services offered by technologists have been in high demand throughout the pandemic with companies requiring everything from digital transformation to heightened vigilance against an increasing number of cyber-attacks. READ MORE

A squandered chance to reform executive pay

Many of us would like to forget the painful months of the pandemic: we are still living with the consequences. Some company bosses, though, are rejoicing. Thanks to his overgenerous board, the chief executive of Chipotle Mexican Grill will be paid as though March, April, and May of 2020 never happened. The US fast-food chain is recommending shareholders vote next week for Brian Niccol and his senior team to benefit from an incentive plan that excludes the Covid-19 hit to sales and ignores certain increased costs. If Chipotle’s shareholders protest, the group will join a number of US companies that have suffered shareholder revolts over pay in this annual meeting season. General Electric, AT&T, IBM and Starbucks are among those that have failed to win majority support in “say on pay” votes. READ MORE

The Best Place To Live on a $100,000 Salary in Every State

America is nothing if not diverse. There are plenty of cities where you can afford to live comfortably, or even be "rich," for less than $100,000. Which location draws your interest could depend on a number of factors, ranging from those that are up-and-coming cities to those that are the best cities to raise a family. Overall, the best cities to live in generally have high livability scores and affordable costs so that you can take home more of your salary.

GOBankingRates analyzed data from a number of sources, ranging from AreaVibes to Sperling's Best Places and the Bureau of Labor Statistics, to compile this list of the best places to live on a $100,000 salary in each state. READ MORE

Will the trend of wage acceleration continue?

Inflation has picked up materially in recent months, with the core CPI rising 3.0% in April, the highest year-over-year rate in 25 years.

As measured by the Employment Cost Index (ECI), growth in wages and salaries among private-sector workers has also picked up. Further acceleration in wages and salaries, should it occur, could push rates of consumer price inflation even higher and keep the current burst of inflation from subsiding as the FOMC presently expects. READ MORE

New Tax on "Excessive" Compensation of Tax-Exempt Executives Imposed at Not-So-Excessive Levels

The Tax Cuts and Jobs Act of 2017 added Code Section 4960 to the Internal Revenue Code, which is intended to tax excessive compensation of executives providing services to tax-exempt entities. The limitations apply to tax years beginning on or after January 1, 2018. The Treasury Department previously published proposed regulations and issued interim guidance in the form of an IRS notice (IRS Notice 2019-60). Final regulations were published on January 19, 2021. The final regulations are effective for tax years beginning on or after January 1, 2022. In the interim, taxpayers can rely on guidance set forth in the proposed regulations and interim guidance. This update summarizes the statute and final regulations, which represent the first time that the IRS has attempted to assess penalty taxes on excessive compensation of tax-exempt executives. READ MORE

Average police officer salaries across US range from $19K to $131K, depending on location, statistics show

American police or sheriff’s patrol officers make anywhere from just under $19,000 up to $131,000, with salaries varying significantly by region and the department level, statistics analyzed by Fox news show. 

A police or sheriff’s patrol officer makes a mean hourly wage of $33.66 and an average yearly salary of $70,000, but their annual pay varies significantly by region and jurisdiction, the Bureau of Labor Statistics' (BLS) most recent data for May 2020 shows.  READ MORE

U.S. Labor Secretary Says Gig-Worker Mislabeling Is Major Issue

The misclassification of employment as “gig work” is a major economic issue that the U.S. Labor Department is working to address, according to Labor Secretary Marty Walsh.

“Misclassified employees often are denied access to critical benefits and protections like overtime, minimum wage, paid leave, unemployment insurance,” Walsh said at an online business-journalism conference Monday, calling it one of the “most serious issues” in the jobs market. “It undermines our economy. We have some work to do in this space.” READ MORE

White House Seeks to Raise Minimum Wage for Federal Contractors

President Biden signed an executive order ("Minimum Wage EO" or "EO") seeking to raise the federal minimum wage for government contractor employees, beyond the statutory minimum wage provided by Congress, to $15 an hour. If fully implemented, the new minimum wage will eventually be required for certain types of solicitations, contracts, and "contract-like instruments" (including extensions, renewals, and options on existing contracts). READ MORE

These companies are hiking wages because they can't find workers

The race to find talent — and retain existing talent —has entered warp overdrive as the economy kicks into high gear amidst increased COVID-19 vaccinations and a labor shortage. 

Companies from McDonald's to Amazon are finding that in order to get the employees they need to service demand spikes, they will have to pay way more per hour. And in some cases, they will be forced to offer bonuses to attract workers with the skills needed.  READ MORE

$58,508: The Average Starting Salary for New Accounting Grads

Accounting students who are graduating in 2021 are the beneficiaries of an average starting salary that has increased by nearly 11% over last year, according to the most recent salary survey from the National Association of Colleges and Employers (NACE).

The average starting salary for accounting undergrads this year is projected to be $58,508, up from $52,734 in 2020. That 10.9% increase is quite the jump over last year, when the average starting salary was expected to increase by only 0.4% for the class of 2020. READ MORE

Chipotle minimum wage hike to $15 deals 'psychological' blow to restaurant industry

Chipotle's minimum wage hike could spell profit doom for rivals that are forced to follow suit to retain workers, while also lacking the compelling menus to justify price increases on diners. 

The burrito and salad bowl giant said Monday it would lift the average hourly wage for its restaurant workers to $15. The company is also offering employee referral bonuses of $200 for restaurant workers and $750 for general managers. It touted the ability to be a manager of several Chipotle restaurants — a position it calls a restaurateur — within four years. The position pays more than $100,000 a year, Chipotle said. The burrito chain is looking to fill 20,000 restaurant positions. READ MORE

Equity Compensation Alternatives

For both established companies and new companies, it is often essential to allow key employees to participate in the company's future growth and profitability through equity ownership. This helps align the interests of ownership and key employees. Equity compensation can be more affordable from the employer's standpoint because the employee generally only benefits if there is future growth and profitability. From the employee's perspective, it is beneficial because it allows employees to reap the rewards of their efforts. Corporations, limited liability companies, and partnerships can all issue equity compensation awards. READ MORE