The Death Of Non-compete Agreements?

On January 5, 2023, the Federal Trade Commission (FTC) announced its proposed rule to eliminate non-compete agreements on the basis that they unduly suppress employee wages and stifle innovation and business dynamism. Whether this is a good idea or not depends upon whether you use non-competes to protect your business or whether the existence of non-competes stands in the way of you hiring quality employees. For most businesses, the proposed regulation will be a mixed bag as they want to protect their existing workforce and confidential information while at the same time have the freedom to hire desperately needed talent who are locked up by non-compete agreements. READ MORE

These states are raising their minimum wage

The current period of high inflation that has significantly impacted the US economy will also influence a New Year’s tradition: The annual state minimum wage increases.

By January 1, hourly minimum wages in 23 states will rise as part of previously scheduled efforts to reach $15 an hour or to account for cost-of-living changes. The increases account for more than $5 billion in pay boosts for an estimated 8.4 million workers, the Economic Policy Institute estimates. READ MORE

A Perk to Getting These Jobs: You Pick Your Pay

When George Melvin clinched a job as lead software engineer at Unlearn.ai this past summer, the company made him two offers. 

In the first, the base salary made up 70% of total compensation, with the rest in equity, he says. The other was 58% salary, 42% equity. Confused, he asked the San Francisco startup’s human resources department if the twin offers were a negotiating tactic.  READ MORE

Benefits and Compensation in 2022: A Look Back

Soaring inflation was the common factor behind many of the biggest headlines in the world of compensation and benefits in 2022, but other developments were on employers' minds as well, including abortion benefits in the wake of a landmark U.S. Supreme Court reversal; transparency around job salaries and wages; and employee mental health in a time of extreme global insecurity.

Here's a look at some of the year's biggest topics in compensation and benefits. READ MORE

2022 Year-End – A Few Executive Compensation Income Tax Reminders

With the holidays in full swing and less than one week remaining in 2022, we wanted to pass along a few compensation income tax related stocking stuffer reminders in connection with the year-end for which companies and/or individuals may want to consult about with their advisors (and in particular to see if they should take any actions before 2023). For simplicity, this blog assumes that the calendar year is the income tax year for both service providers and service recipients. READ MORE

More companies linking executive pay to stakeholder measures

More than three quarters (78 percent) of large companies now include stakeholder-based metrics in their executive compensation plans, according to a global survey from Farient Advisors.

That figure is an increase from 73 percent in 2021 and 64 percent in 2020. Marked regional differences persist, however. Almost nine in 10 companies surveyed in continental Europe this year (88 percent) used stakeholder incentive measures, compared with 63 percent of those in the US and 62 percent of those in Canada. READ MORE

Key Compensation Considerations for Public Companies in a Market Downturn

As a result of recent market trends, US public companies and their compensation committees face challenging decisions as they seek to maximize shareholder value while retaining and competitively incentivizing key employees. This insight highlights some of the key considerations that US-based public companies and their compensation committees should consider in this environment. READ MORE

Average US Pay Increase Projected to Hit 4.6% in 2023

Employers in the U.S. plan to boost salaries an average of 4.6 percent in 2023, up from 4.2 percent this year, according to a new study.

Employers say inflationary pressures and the ongoing challenges of finding and keeping workers are the main reasons for the higher projected increases. Indeed, 3 in 4 of the 1,550 U.S. employers in the latest Salary Budget Planning Report by consultancy WTW say they continue to experience problems attracting and retaining workers. The survey was conducted from Oct. 3 to Nov. 4, 2022. READ MORE

Worker says she told her ‘cheaper replacement’ her own salary the day she left

The TikToker, named Kayla (@corporatecanadian), posted a video about the situation on Tuesday. In it, she is seen smirking as an audio clip from “Gossip Girl” says, “It’s so mean. Don’t do it. It’s the meanest thing you could do.”

In the video’s text overlay, Kayla elaborates on what the “mean” thing is.

“Training the cheaper replacement they hired but letting her know your salary on the day you leave,” she writes. Kayla adds in the caption, “Knowledge is power.” READ MORE