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Archive for January, 2020

STRATEGIC ISSUES AND THE PAY MODEL

Perceptions of compensation vary.  It is seen as a measure of equity and justice.  Stockholders are focused on executive compensation.  Legislators may view average annual pay changes as a guide to adjusting eligibility for social services.  Employees see compensation as a reward for their services and a job well done.  Managers will view compensation from the perspective of a labor cost, but also from a competitive perspective that enables them to recruit, engage and retain employees.  The four basic compensation policy decisions that an employer must consider in managing compensation are: 1) internal consistency, 2) external competitiveness, 3) employee contributions, and 4) administration of the pay system.  The balance between the four policies becomes the employer’s compensation strategy.

It is valuable for companies to link an organization’s overall goals and strategiesPay Model with the Human Resource strategy.  Not doing so, can lead to serious issues of employee retention, engagement, and productivity that can be laborious and expensive to repair.  Compensation for many organizations is the single largest business expense and is visible and important to employees, managers, and stockholders.  Therefore it is important to strategically plan and regularly evaluate compensation systems.  Working with your company’s executives is critical to ensuring your compensation philosophy is supporting business objectives.  Strategic objectives will include significant challenges and priorities now and over the next two to five years.  Some examples are business growth plans, key talent and training objectives, market competition, and whether or not you are in a union environment.  Some other key considerations for your compensation program are:

  • Attracting the appropriate skill sets and types of employees when needed
  • Rewarding employees for their efforts, such as increasing workloads, taking on new tasks and projects
  • Employee morale and perceived value of a company’s benefits, incentives, and work environment
  • A mix of base pay, incentive pay, work environment and benefits that makes the most sense for the organization
  • The link between base and incentive pay with performance
  • Legal issues such as wage and hour

An example of a compensation strategy that aligns with other Human Resource initiatives is matching pay ranges to the desired outcome.  If quality, experience, and a sophisticated skill set are a strategic advantage to an organization, then it will not be successful in hiring employees significantly below the market rate.  Determining whether the organization wants to lead, lag, or match the market is a key decision.  A ‘mixed market position’ approach has become more common as employers realize that a one-size-fits-all strategy does not fit the entire workforce.  For example, location and market competitiveness will impact your pay levels and certain key or hard to fill or retain positions may require pay well above the market, while other positions may be ok with a lag approach.

A successful compensation program will focus on top priorities, guide employees to where their effort can create the most value, create financial and non-financial consequences for success and failure, drive and reward the development of skills and encourage teamwork and collaboration.  Many organizations today keep an eye toward aligning workers’ interests with company goals through innovative types of rewards in the workplace, including skill-based pay and goal sharing.  The right total rewards system is a blend of monetary and nonmonetary rewards offered to employees and can generate valuable business results.  These results range from enhanced individual and organizational performance to improved job satisfaction, employee loyalty, and workforce morale.

Maintaining a competitive advantage and being able to retain key employees is increasingly important.  At WageWatch, our compensation consultants can assist with your organization’s compensation needs and help you ensure that your compensation programs are supporting your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

NLRB REVERTS TO FORMER STANDARD ON USE OF EMPLOYER EMAIL SYSTEMS

NLRB Email

Shortly before Christmas, the National Labor Relations Board re-established the right of an employer to restrict employee use of its email systems to business use only, if it does so on a nondiscriminatory basisThe new decision overrules the standard set in the 2014 Purple Communications, Inc. case and returns to the standard set in the 2007 Register Guard case.

At issue is when employers can restrict the use of their e-mail and other information technology (IT) systems and when doing so interferes with employee rights guaranteed in Section 7 of the National Labor Relations Act (NLRA).  In Caesars Entertainment d/b/a/ Rio All-Suites Hotel and Casino, the Board overruled the controversial case of Purple Communications, Inc., and held that employees do not have a statutory right to use employers’ email and other information-technology (IT) systems to engage in non-work-related communications, including Section 7 protected, concerted or union activity.

In Purple Communications, the Board held that employees who have been given access to their employer’s email system for work-related purposes have a presumptive right to use that system, on nonworking time, for communications protected by Section 7.  But the new decisions change the standard, giving more weight to employers’ property rights that the previous decision.  The Board reestablished that employers have the right to restrict the use of their equipment, including their email and other IT systems to business and work-related use, provided that in doing so, they do not discriminate against the union or other protected concerted communications.  Recognizing that employees must have adequate avenues to engage in communications protected by Section 7 of the NLRA, the Board’s decision creates an exception for circumstances where the use of employer-provided email is the only reasonable means for employees to communicate with one another on non-working time during the workday.

The Caesars Entertainment decisions reaffirm a long line of decisions holding that the NLRA generally doesn’t restrict an employer’s right to control the use of its equipment.  The National Labor Relations Board’s (NLRB) decision to allow employers more leeway in restricting the use of their email and other communication systems for union organizing is just the latest decision reversing standards set by the Obama-era Board.   If your employee handbook or work rules were revised in 2016 or after to comply with Purple Communications, you may wish to reconsider returning to a business-use-only position in 2020.

Guest Blog Editor:  Spognardi Baiocchi LLP, is a law firm dedicated to partnering with companies of all sizes to find solutions for labor, employment, human resources, and general business needs.  www.psb-attorneys.com.

WageWatch offers accurate, up-to-date benefit surveys, salary surveys and pay practice data that will allow you to stay current.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  For more information on our services, please call WageWatch at 888-330-9243 or contact us online.

Posted in Regulatory & Legal Updates on January 22nd, 2020 · Comments Off on NLRB REVERTS TO FORMER STANDARD ON USE OF EMPLOYER EMAIL SYSTEMS

NLRB MODIFIES “QUICKIE” UNION REPRESENTATION RULES

On December 13, 2019, the Board issued a final rule amending its election procedures.  The NLRB uses these procedures to determine whether employees are unionized.  The new amendments extend deadlines and add steps to ensure certain disputes are resolved before employees vote.  Chairman John F. Ring announced, “These are common-sense changes to ensure expeditious elections that are fair and efficient.” The new rules provide:

  • The rule amendments allow more time for employers to prepare for the pre-election hearing.  The new rule extends the time for holding a pre-election hearing from eight calendar days to 14 business days after the petition is filed.  This allows the employer for a longer period before the opening of the hearing than is currently the case.   It also allows the parties and the Board more time to try to resolve issues without a hearing, rather than litigating issues that might have been resolved through negotiation and agreement.
  • The employer will now be required to post and distribute the Notice of Petition for Election within five business days after service of the notice of hearing.  The prior rules required posting and distribution within two business days.  The additional time will permit employers to balance this requirement with other obligations imposed on them by the filing of a petition and guarantee that employees have the benefit of the Notice of Petition for Election for a longer period before the opening of the hearing than is currently the case.
  • The new rule requires unions to respond to the employer’s position statement.  Previously, the entire burden leading up to a pre-election hearing rested on the employer, including the filing of a position statement, or risk waiving the issues at the hearing.  Under the new rule, some of the burdens are shifted to the union.  The union is now required to file a response to the employer’s position statement, or risk having their petition dismissed or the employer’s position on bargaining unit issues accepted by the Region.
  • The new rule allows employers to litigate who are supervisors and who is included in the bargaining unit before the election.  Employers will once again know who is eligible to vote in the election and customize their communication to those employees who will be voting.  Employers will also know in advance who its supervisors and front-line management are during the critical campaign period and who its union-free communications team is.
  • The new rules provide employers with more time to conduct a union-free campaign before the election.  The new rule directs Board officials to set elections no fewer than 20 days after approval of consent election agreement or order and direction of election. This change will come close to returning the pre-election timeline to the pre-expedited election rules average.

Guest Blog Editor:  Spognardi Baiocchi LLP, is a law firm dedicated to partnering with companies of all sizes to find solutions for labor, employment, human resources, and general business needs.  www.psb-attorneys.com.

WageWatch offers accurate, up-to-date benefit surveys, salary surveys and pay practice data that will allow you to stay current.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  For more information on our services, please call WageWatch at 888-330-9243 or contact us online.

Posted in Regulatory & Legal Updates on January 22nd, 2020 · Comments Off on NLRB MODIFIES “QUICKIE” UNION REPRESENTATION RULES

TWENTY-ONE STATES RAISE MINIMUM WAGE RATES ON JANUARY 1, 2020

Pic of Map

The current federal minimum wage, under the Fair Labor Standards Act (FLSA), is $7.25 per hour which has been in effect since July 2009.  States can set a rate that is higher than the federal minimum rate and employers are obligated to pay the higher rate.  Currently, there are 29 with laws at the state or local level mandating higher pay than the federal rate.

Voters across multiple states approved ballot measures to raise their state minimum rates over time, with increases occurring through 2020 and beyond.  There are 21 states implementing a rate increase on January 1, 2020, including:

1) Alaska
2) Arizona
3) Arkansas
4) California
5) Colorado
6) Florida
7) Illinois
8) Maine
9) Maryland
10) Massachusetts
11) Michigan
12) Minnesota
13) Missouri
14) Montana
15) New Jersey
16) New Mexico
17) New York
18) Ohio
19) South Dakota
20) Vermont
21) Washington

For more details, click on the following link to view the WageWatch Minimum Wage Chart with details of federal, state and local minimum wage increases:  WageWatch – U.S. Minimum Wage Increases.  (Some states vary wage rates based on company size or annual revenue.)  In addition to the statewide minimum wage increase, multiple states have approved minimum wage increases that are higher than the statewide average.  (The increases are referenced in the attached Excel spreadsheet).  NOTE:  There are a few states and cities that increase rates on July 1, 2020, and/or other months throughout 2020; where known, they are noted.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives. WageWatch offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.