Despite laws requiring fair pay for equal work, gender bias remains a problem in the workplace. The Equal Pay Act of 1963 states that employers may not discriminate based on gender when it comes to wages. Additionally, the Lily Ledbetter Fair Pay Act, passed four years ago, also enforces equal pay for men and women and states that a case may be filed by an employee 180 days after any discriminatory paycheck is received. While another bill, the Paycheck Fairness Act is currently before Congress, Alison B. Marshall of Jones Day encourages employers to be mindful of pay equity. Even if the Paycheck Fairness Act does not pass, officials from the Equal Employment Opportunity Commission (EEOC) and the Office of the Federal Contract Compliance Programs are moving forward more aggressively in their investigations of pay disparity. A task force implemented by President Obama’s administration is currently auditing employers in New York, Chicago and Phoenix to determine companies’ compensation practices ...

Many employers struggle with this question and it is an important topic to consider when developing or revising your company’s employee handbook. If you do not have guidelines outlining accrued vacation, the state you operate business in may decide it for you. Some states have laws on the books regarding employee compensation, including payment requirements for accrued vacation. For instance, in Ohio if an employer does not have any policies in place, they are obligated to pay all remaining vacation time regardless if an employee is terminated, resigns or position eliminated due to downsizing. As a way to control costs and not reward bad behavior, some companies have chosen to differentiate accrued pay policies for employees who are terminated vs. those that resign or are laid off. One policy example states that accrued vacation will be paid to non-terminated employees who provide notice (typically 2 weeks), participates in an exit interview and returns all equipment and materials belonging to t ...

With all the negative information out there regarding the U.S. economy, recent payroll numbers indicate a bright spot in a once gloomy economy. A recent U.S. payroll data report has revealed that more jobs were added last month than previously projected. Employers added 236,000 jobs vs. the 160,000 forecasted, bringing the unemployment rate down to 7.7%. This is the lowest unemployment rate the U.S. has seen in more than 3 years, bettering rates not seen since the end of 2008.  The latest job numbers report suggests that the economy is moving in a positive direction and moving away from fiscal austerity or tactics a government takes to reduce budget deficits. All eyes will turn toward the Federal Reserve and its policy board to determine if it will raise interest rates as the economy continues to strengthen. In the past, the Federal Reserve has stated that it will raise interest rates once the unemployment rate drops to 6.5%. With the positive payroll data, investors are waging that the U.S. econo ...

The bureau of labor statistics recently released figures on the cost for employers to compensate their employees in December 2012. According to the numbers, private industry employers spent $28.89 per hour worked, on average, for complete employee compensation. Salaries and wages averaged $20.32 per hour and made up 70.3 percent of the costs. Benefits cost $8.57 on average and compensated for the other 29.7percent. The compensation costs for state and government employees were $41.94 per hour worked, on average. Total costs for civilian workers, including private industry as well as state and local workers were $30.84 per hour worked, on average.  Employer Costs for Employee Compensation (ECEC) is a product of the National Compensation Survey. It measures cost levied on employers for wages and salaries as well as employee benefits for nonfarm private as well as state and local government employees. The bureau also released the figures for the cost of paid leave in the private industry. Paid leave ...

The total pay that CEO’s earn has skyrocketed, especially over the last ten years. The question is not whether CEOs make too much. The stress involved in their job along with their one-of-a-kind skills are not enough to justify the termination of hundreds of average employees to pay an incredible bonus to CEOs. Many wonder why they are so untouchable and immune to the needs of the employees working for them.  Tying executive compensation to the financial success of the company has become a very popular trend. This impractical method makes the assumption that the company’s value is a result of the CEO’s ability. The base salary for executives is normally about 20 percent of the total pay they are given. The rest is accounted for in incentive pay, bonuses and stock awards. The increase in executive pay has risen at a much faster rate than the cost of living. Although general employee’s salaries have risen to match the cost of living, CEOs are making far more. Understandin ...