Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
Today: non-compete clauses in New Hampshire, more reasons to embrace the turning tide toward wage transparency, and $15 minimum wage gets a vote.
New Hampshire & Maryland join growing list of non non-compete states
The governor of New Hampshire signed new legislation giving citizens another way to “live free or die.” New Hampshire follows on the heels of Maryland, Illinois, Washington and Massachusetts in prohibiting employers from forcing low-wage workers to sign noncompete agreements.
The Number: 200%. Each state has a different threshold for the definition of “low wage.” For New Hampshire, the legislation applies to workers earning 200% of the federal minimum wage or less.
The Quote: “A Noncompete agreement entered into between an employer and a low-wage employee shall be void and unenforceable.”
Pay transparency actually is important to workers…
We’ve said it before, but it bears repeating: pay secrecy is a hot topic in the workforce these days. New research shows just how important it is to open up the conversation around money and salary expectations; turns out that wage transparency can be an effective strategy for combating employee turnover. A full 20% of workers report that they would leave their current situation for a better-paying job, compared to the meer 6% of HR leaders who think that a lack of competitive pay is why workers hand in their notice. See the problem?
The Number: 19%. Only 19% of US workers give their employer an “A” grade for compensation and promotion opportunities.
The Quote: “Traditionally, wages have been a taboo topic — but today’s workers have fewer inhibitions about discussing pay openly. In fact, many workers, especially those in creative jobs, want and expect employers to be upfront about their pay practices.”
$15 minimum wage passes the House
The US House of Representatives passed a bill to increase the Federal minimum wage to $15 per hour. That would increase the wage from $7.25 to $15 by 2025. The bill is unlikely to pass through the US Senate, however.
The Number: 1.7 million. Currently, $1.7 million Americans earn at or below the minimum hourly wage.
The Quote: “We’re not going to be taking that up in the Senate.”