The world of employee compensation continues to increase in complexity for small to mid-sized organizations. Local, State, and Federal legislation has increasingly focused on Minimum Wage, Pay Equity, and Pay Transparency. In January of 2019, 19 states increased minimum wage limits, with several others imposing increases later in the year.
States like New Jersey have implemented a tiered increase moving to $10.00 per hour in July 2019 with scheduled increases through 2024 taking the hourly minimum to $15.00.
Delaware increased the minimum for most employees in January from $8.25 to $8.75, and will again increase the amount in October of this year to $9.25.
New York City will have a $15.00 minimum for all employees starting January 1, 2020.
PROXUS has increasingly been called on by our clients for assistance in this area. As Human Resources, Finance, and Business leaders grapple with questions on how best to implement these changes and maintain compliance, our Director of Compensation, Dennis Shrenk, continues to be leveraged as a resource.
Often discussions include concerns around:
- How “aggressive” should we be? Do we simply move to the new minimum or something greater?
- How do we account for wage compression?
- How should we communicate this to employees? Do we only communicate to those affected or all employees?
- Are you able to produce multiple models for us to consider based on the overall impact?
PROXUS works hard to keep our clients aware of changes like the ones above, and to provide the information and resources necessary to address them.
If you would like assistance with managing upcoming minimum wage increases, salary structure development, or other compensation concerns, please contact Matt Roessler, Director of Business Development at 201.738.8121 or MRoessler@Proxushr.com.