Webinar: Overtime and Wage Compression - Balancing Compliance and Pay Equity
Each year, many states increase their minimum wage rates and the salary threshold for executive, professional and administrative employees to be exempt from overtime requirement.
With those new wage rates and overtime thresholds now in effect for 2023 and increased federal overtime thresholds expected to be announced this year, employers can face a chain reaction of related challenges as a result of complying with the new levels. The increased wages and thresholds can unintentionally result in pay disparity and wage compression depending on the approach an employer uses:
- Raising an employee's salary to address wage requirements or the salary threshold to remain exempt may cause wage compression with employees already paid above the new levels whose salaries are not increased.
- Paying overtime to employees who newly fall below the threshold salary may cause their pay to match or exceed that of remaining nonexempt employees, like supervisors or managers.
This may result in lower employee morale and tension between tenured and newer employees. Even worse, pay compression can also throw a wrench in an employer's push for pay equity.
In this 60-minute webinar, Ohio-based attorney Jon Hyman, a shareholder at Wickens Herzer Panza and author of the Ohio Employer Law Blog, explores what employers need to know about the overtime regulations, including the anticipated new federal overtime rule and what it means for employers. Then he'll share strategies for approaching wage and salary threshold increases and their impact on the strategic goal of pay equity. Jon also shares how employers can pursue both the need to comply with wage and overtime requirements and the goal of achieving and maintaining pay equity, without sacrificing either.
In this webinar you learn:
- Options for complying with the new overtime thresholds
- Strategies for reducing wage compression, including noncash options
- How to keep pay equity top of mind when dealing with overtime and related issues
- And more