Sante Fe has become the first city in the country to link wages to housing affordability. This legislation is meant to counter high rents by tying minimum wage increases to consumer prices and fair market rental rates.
This city-mandated wage increase has implications for businesses with multiple locations in Sante Fe and beyond.
Here’s what business leaders and HR professionals will need to remain compliant with multi-state labor laws like Sante Fe’s.
A compensation philosophy outlines an organization’s approach to pay and benefits, guiding fair and consistent compensation decisions. While having a compensation philosophy has always been important, there are other influencing factors that may impact how a company pays its employees.
In addition to the city-mandated wage in Sante Fe, new pay-related legislation continues to be proposed and passed in many states. With regard to minimum wage, some states choose to meet the federal minimum wage, while others choose to set a state-level minimum wage. Beyond each state or city, municipalities may also have their own minimum wage/labor laws on the books.
The remote nature of today's work environment further complicates matters. Safeguarding compliance in each state where you have Nexus is imperative. Seeking tools to inform you of the ever-changing pay landscape can be helpful.
Using a compensation philosophy as a guideline for pay decisions and a stake in the ground on market competitiveness is a best practice when navigating the ever-changing pay landscape. Being compliant is also of utmost importance.
If your organization operates in multiple states, having an up-to-date, geographically adjusted salary structure will provide an understanding of how location affects pay, in addition to address location-specific wage legislation.
An organized approach to compensation is critical in today’s highly competitive labor market environment. If you need assistance creating or updating your compensation philosophy or salary structure, please let us know.