As reported last week, on August 30, 2023, the U.S. Department of Labor (DOL) announced it is proposing a revised rule that will increase its Salary Level Test by revising part of the Exemption Tests in its regulations. To be classified as an exempt employee under the DOL regulations, the job must meet three tests as outlined by the FLSA regulations:

In a March report released by the Pew Research Center, it was revealed that in 2022, women in the United States typically earned 82 cents for each dollar earned by men in similar roles. This statistic remained stagnant when compared to the year 2002 when women earned 80 cents on the dollar. The slow pace of narrowing the gender pay gap in the 21st century stands in stark contrast to the considerable progress made in the preceding two decades. In 1982, women were earning a mere 65 cents for...

Paid parental leave is a critical policy that provides employees with the opportunity to take time off work to care for their newborn or newly adopted child while receiving a portion of their regular pay. While many countries around the world have implemented paid parental leave policies, the United States has been slow to catch up.

Growing inflation has been the source of much conversation in the past three years.  Much of the conversation revolves around how inflation impacts wages.  A recent article in Forbes provides some good analysis around why salary increases do not always align with inflation. 

The Colorado legislature has passed the Ensure Equal Pay for Equal Work Act, amending the Equal Pay for Equal Work Act (EPEW) to clarify and enhance an employer’s obligations relating to the announcement of a promotional opportunity.  The effective date is January 1, 2024.  Why does this matter to Michigan employers?  Because Michigan is seemingly taking all of the progressive employment initiatives throughout the country and trying to pass them into law...

As organizations plan for the future, one important aspect that requires careful consideration is salary budgets. Anticipating and forecasting salary trends is essential for attracting and retaining top talent, maintaining competitiveness in the job market, and ensuring the financial health of businesses.

Earlier this month, ASE released the results of the 2023 Compensation Survey. What makes our survey unique is the employer-reported benchmarked data – with a 65% constant sample (companies who report year after year.) This year’s results show larger than normal wage growth due to inflation and other economic factors.

ASE, Michigan’s largest employer association supporting its members with Everything HR, has released the findings of its 2023 ASE Compensation Survey.  The full results were presented at the Michigan Pay & Economic Briefing that took place June 6^th in Troy.

Voluntary benefits are services or products offered by employers, often at discounted rates, as a perk of employment. Employers can provide benefits that employees want, while employees will have a variety of insurance options available in one convenient place and as the name implies, it is optional to purchase.

In recent years, the concept of unlimited time off has gained attention as a progressive approach to employee vacation policies. This innovative policy grants employees the flexibility to take as much time off as they need, without strict limitations. While it may sound appealing, it is essential to examine the advantages and disadvantages of unlimited time off to understand its potential impact on employees and organizations alike.

New York City is deferring enforcement of its first-in-the-nation regulation of the use of AI-driven hiring tools (Local Law 144 of 2021), which was initially slated to go into effect on January 1, 2023. The law is actually in effect currently, but enforcement has been deferred to July 5, 2023.  The delay in enforcement was announced by the city’s Department of Consumer and Worker Protection in an update as part of the publication of a final rule implementing Local Law 144. ...

Last week the CEO of MillerKnoll Inc. made some news for telling employees to leave “pity city” because they were concerned about whether they would receive any bonuses due to the fact it appeared the company would be short about $26 million toward their financial goal for the year. Ms. Andi Owen posted a video to her employees stating, “Spend your time and your effort thinking about the $26 million we need, and not thinking about what you are going to do if you don’t...

Remote work offers companies and employees more flexibility. We’re no longer limited by geography. Technology makes it easy to collaborate across the entire country. However, the complex issues that arise with out-of-state employees can be a barrier to nationwide hiring practices—and failure to comply can result in large fines and fees.

Employee compensation is a critical factor in employee retention. When employees feel that they are being fairly compensated for their work, they are more likely to stay with their current employer. However, compensation is not just about salary, but also includes benefits, incentives, and other forms of rewards.

Pay transparency is the employer practice of disclosing information about employee compensation standards to others — internally, externally, or both. States and municipalities across the country have enacted or are considering implementation of laws and ordinances that require employers to provide pay data information to the public when putting out hiring notices or when requested by candidates seeking employment.

Can you afford to retire?  Many think not. Bills have to be paid and cash is at a premium, especially in this inflationary time.  Moreover, although many have stayed the course, and over the pandemic saved more, investments have taken a major hit.  Add the fact concerning all the articles predicting the bankruptcy of Social Security (which is unlikely) and the belief by the younger generations that it won’t be there when they reach the age of retirement, there is a...

Employers should be prepared to review their exempt positions for proper Fair Labor Standards Act (FLSA) classification. Earlier this year, the U.S. Supreme Court ruled that despite an oil rig worker making over $200,000 a year and being a supervisor, that position was non-exempt and entitled to overtime pay for weeks worked in excess of 40 hours.

The 3^rd Circuit Federal Court of Appeals recently reviewed the question of whether paid time off (PTO) is considered part of the salary of an employee.  Specifically, does the docking of PTO violate the salary basis requirement for exempt employees under the FLSA?  The court said no.

Are your employees passionate about a cause or do they want to volunteer at their kids’ reading day for an hour?  Then it’s time you look at offering VTO – Volunteer Time Off.  It is proven to improve employee engagement and productivity.  It is also great for your brand.

If an employee goes off on military leave, is the leave paid or unpaid?  It depends on how the company covers other comparable leaves for non-military reasons.

Intermittent FMLA is one of the most difficult issues for HR professionals.  It can be difficult to manage, and personal liability could attach if they interfere with FMLA leave.  Therefore, a conservative approach is recommended.  However, a recent Federal 6^th Circuit of Appeals case (which covers Michigan) may provide some helpful guidance.

Just as companies have adapted to remote work, a new development in workplace flexibility may be on the horizon: the four-day work week. In fact, two recent studies have shown that this work arrangement could offer significant benefits for both employers and employees.

As previously reported in EPTW, the U.S. Supreme Court (SCOTUS) was considering whether an oil rig worker that could earn over $200,000 per year could be classified as exempt from overtime pay. Last week SCOTUS ruled that because the job’s compensation was based upon a day rate and not a bona fide salary under the Fair Labor Standards Act (FLSA), the job could not be classified as exempt and therefore must be paid overtime for any hours worked over 40 in a week.

As college students end their school year, their attention may turn to internships and co-op programs. ASE’s 2023 Salaries for Co-op Students and Recent College Graduates Survey reports that 75% of respondents employ co-ops and/or interns.

In a world where the labor participation shortage is not going away, employers are looking for real ways to drive productivity, performance, retention of talent, and new strategies for attracting incoming generations. Just paying employees more is not driving major improvements and may not be financially sustainable over time. What else can be done?