Salary Threshold Increase for Exempt Employees Blocked

A federal district court in Texas has blocked a U.S. Department of Labor (DOL) final rule that would have increased the salary thresholds for certain exempt employees on January 1, 2025. As a result, the rule —and its accompanying threshold increases — will no longer go into effect, and the salary threshold increase that took effect on July 1, 2024, has been undone. For employers already dealing with a host of new laws taking effect in 2025, the decision may bring some relief, along with uncertainty of what to do with the changes they may have already made. READ MORE

Elon’s Shocking $56 Billion Yearly Pay: Is It Too Much?

Elon Musk, the CEO of Tesla, has recently faced another legal setback regarding his massive compensation plan. Judge Kathaleen St. J. McCormick of the Delaware Court of Chancery upheld her previous decision from January to cancel the $56 billion package awarded in 2018. Despite a second shareholder vote in June to reinstate it, the judge ruled that the initial process was “deeply flawed” and that the subsequent vote did not rectify these issues. READ MORE

DEI-Tied Executive Pay Loses Ground at Companies Amid Backlash

More companies are ditching diversity, equity, and inclusion metrics to help determine their executives’ compensation amid a conservative backlash against corporate DEI programs.

The pullback, however, doesn’t mean the popular tie-in has been abandoned. In fact, a majority of S&P 500 companies and more than 40% of Russell 3000 firms that use environmental, social, and governance metrics in executive pay still link compensation to achieving DEI goals, according to a report the Conference Board, ESGAUGE, and FW Cook released Thursday. READ MORE

Research finds CEOs innovate — or don’t — based on compensation packages and input from analysts


West Virginia University research shows the stock market shapes chief executive officers’ commitments to innovation through mechanisms that range from CEO pay packages to feedback from financial analysts.

“The investment industry usually views financial analysts’ feedback, such as earnings forecasts, as impeding innovation because of the pressure the feedback puts on CEOs,” said Xinchun Wang, associate professor of marketing at the WVU John Chambers College of Business and Economics. “But not all feedback provided by analysts generates that kind of pressure. Stock recommendations actually foster explorative activities like research and development — investments that, although risky, can positively affect long-term returns.” READ MORE

Trump said he'd consider raising the minimum wage. His own party may get in the way.

Over the weekend, President-elect Donald Trump said he'd consider raising the federal minimum wage, saying that the current rate of $7.25 per hour is a "very low number."

"There is a level at which you could do it, absolutely," Trump said in an interview with NBC on Sunday, declining to commit to a particular dollar amount. "I would consider it. I'd want to speak to the governors." READ MORE

Amazon founder Jeff Bezos kept his base salary modest during his 20 years as CEO. It likely saved him millions in taxes

Currently worth $246 billion, Jeff Bezos is one of the richest men in the world. So it may come as a surprise to learn he kept his Amazon salary at just over $80,000 for decades.

“My view was I was a founder, “ the former CEO and founder of Amazon told The New York Times. “I already owned a significant amount of the company and I just didn’t feel good about taking more.” READ MORE

Total Rewards Takeaways from the Recent U.S. Election

Each Presidential election in the United States brings with it the chance of large-scale change by a new administration. In President-elect Donald Trump’s case, the administration isn’t technically new, but it is only the second time in American history that a former President has won back the White House after a one-term absence — so that adds a somewhat different twist to the process. The bottom line as we head into 2025: Prepare for a shakeup. READ MORE

Minimum wage set to rise in 23 states next year as $15 an hour, and beyond, picks up steam

Minimum wage hikes traditionally have been aimed at helping low-paid workers afford the basics, such as food, medicine and housing.

But a growing number of states and localities are raising their pay floors to $15 an hour or above, providing workers a somewhat larger financial cushion so they can not only pay for essentials with less of a struggle but also make some discretionary purchases.  READ MORE

3 Remote Jobs That Pay Up To $150,000+ In 2025

In recent years, the job market has been rocked by major global events such as the COVID-19 pandemic, the widespread adoption of AI (artificial intelligence), and mass layoffs as a direct result of these two influences and their impact on the economy and business operations, which have made many Americans question their standing in the job market and the reliability of specific roles. Remote jobs (and their decline with RTO mandates and evolution into hybrid roles) have been another cause of concern for workers. Naturally, many professionals desire jobs that will give them career stability and are anxious to set up their careers for long-term success, especially when faced with the threat of a recession due to the economy and inflation. READ MORE

Comp for M&A teams: Are you doing enough to keep these busy employees?

As 2025 quickly approaches, many organizations are gearing up for growth. According to recent Gartner research, more than 60% of C-suite execs surveyed say business growth is their top priority, a marked increase from last year—and the highest percentage invested in growth in a decade. For some of these organizations, growth will be found through mergers and acquisitions, which are predicted to rise around the globe. READ MORE

Maximizing Business Growth Through Strategic Sales Compensation

Many companies struggle with ineffective sales compensation plans, with only 21% demonstrating plan effectiveness and expressing satisfaction with their approach, according to Alexander Group’s recent Sales Compensation Hot Topics ResearchOpen in a new tab. So, what sets these successful companies apart?

Sales compensation is more than just a reward system; it is a strategic tool that can address business challenges, highlight priorities and drive growth. This article explores how you may leverage sales compensation to overcome obstacles and foster business expansion. READ MORE

Companies express ‘cautious optimism’ about executive compensation for 2025

Looking ahead to 2025, company leaders voiced “cautious optimism” about corporate performance and executive pay, indicating a steadier approach than in recent years, according to a Nov. 19 report from Pearl Meyer, an executive compensation and leadership consultancy.

About half said they expect moderate (36%) or significant (10.5%) improvements in their overall financial results, while 17% anticipate a modest decline. READ MORE

Ohio State reverses hundreds of workers’ raises after DOL’s overtime rule overturned

Attorneys have previously told HR Dive employers should proceed with caution when considering making changes to worker salaries after the overtime rule was vacated. 

While DOL has appealed the ruling, the 2024 overtime rule is likely dead, the attorneys said. But still, employers that made classification or wage changes to comply with the July threshold adjustment should think twice before reversing wages or reclassifications, Chuck McDonald, co-chair of wage and hour practice at Ogletree Deakins, and Brett Coburn, partner at Alston & Bird, told HR Dive. READ MORE

Pay Bump for Disabled Workers Has Chance of Survival Under Trump

The Biden administration’s latest move to cement long-sought raises for workers with disabilities won’t necessarily be tossed aside once President-elect Donald Trump takes office.

Earlier this week, the US Labor Department announced a new rulemaking effort to phase out the Fair Labor Standards Act’s Section 14(c) program, which allows employers to apply for certificates to pay workers with disabilities less than the federal minimum wage of $7.25 an hour. READ MORE

What’s Happening With Taxes on Overtime Pay?

Tax cuts are in the news again. Former president Donald Trump grabbed headlines when he floated the idea of making all overtime hours tax-free for workers who exceed 40 hours per week. During a campaign rally in Tucson, Arizona, the announcement became another hot tax topic, like no tax on tips, during the 2024 presidential race.

"We will end all taxes on overtime,” Trump told supporters during the election campaign. READ MORE

What 'No Salary' Jobs Could Mean for the Future of Work

We've seen jobs with no pay in the form of internships to gain work experience. But what would you do if you had to pay to work at a company?

Sounds unreasonable but the idea was proposed last week by the CEO of Zomato, the Indian food delivery company, who said he was looking for a "hungry" worker with "a learning mindset" to fill the role of chief of staff for himself in a post on X, formerly Twitter, shared on November 20. The post noted that there is "no salary for the role for the first year" and you would have to "pay 20 lacs for this opportunity," which would be donated to a charity. READ MORE

Jobs That Offer Workers Potential to Triple Their Salaries

Some jobs offering low starting salaries can lead to the tripling of income in 20 years, according to a new Launchpad Jobs report from the American Student Assistance and Burning Glass Institute.

The report tracked jobs where workers were able to triple their salaries in the span of 20 years. This includes workers who started as restaurant hosts, coffee shop employees, motion picture projectionists, amusement attendants, door-to-door sales workers, news and street vendors, pharmacy aides and telemarketers. READ MORE

Overtime Rewind: Texas Court Ruling Unravels FLSA Salary Level Increases

As we previously reported, the U.S. Department of Labor (“DOL”) published a final rule in April 2024 (the “2024 Rule”), raising the salary threshold for the Fair Labor Standards Act’s (“FLSA”) exemptions for executive, administrative, professional, and computer employees and the total annual compensation level for the highly compensated employee exemption. The 2024 Rule also provides for periodic, automatic increases going forward. The 2024 Rule went into effect in July 2024.

On November 15, 2024, however, a Texas federal court struck down the 2024 Rule on a nationwide basis. READ MORE