Good morning!

Today, we're examining a specific case of potentially wrongful firings involving union members and an HR executive. Also in this issue:

👩🏾‍⚖️ What New York's AG has to say
🔑 The key to unlocking AI's potential
🇺🇸 DOL's workforce initiative

Here's a look at what we're seeing, what it means, what we're anticipating, what's resonating and what you think about today’s workplace. Let's get SMART!

Pay history bans are effective in reducing gender and racial pay gaps, according to a literature review by Boston University School of Law. The review cites studies showing that women and non-White workers who change jobs in areas where employers are barred from asking about pay history experience 7.8% higher salary increases compared to those in areas without such regulations.

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Employees tend to avoid salary negotiations, not because they lack the necessary skill set, but because they do not feel safe asking, according to recent research from Harvard University, Brown University and the University of California, Los Angeles. Coaching does not change this behavior either, the study found, suggesting that companies should foster a culture of openness, respect and trust to encourage such conversations. Open dialogue from leadership also encourages employees to engage in these and other difficult conversations.

With big tech companies offering million-dollar salaries, startups face significant challenges in attracting talent due to their limited resources. However, panelists at TechCrunch Disrupt 2025 argued that startups can remain competitive by developing compensation strategies that are generous, fair and flexible. They emphasized the importance of setting clear standards and expectations, and advised that compensation approaches should evolve as the company grows to maintain fairness and avoid legal and cultural pitfalls.

Companies across industries, from Walmart to Salesforce and Meta, are increasingly raising salaries as a primary strategy to engage and retain employees. Walmart recently boosted branch managers' base pay from $130,000 to $160,000, with total compensation reaching up to $620,000 including bonuses and shares. Research shows that fair compensation reduces turnover, making salary hikes a financially savvy approach for companies navigating retention challenges in a changing job market.

Payroll software can enhance HR efficiency by automating wage calculations, tax filings and compliance management. The software can reduce manual errors, administrative workload and compliance risks, and can provide actionable payroll data for better workforce planning and budgeting. Key factors to consider when selecting payroll software include scalability to accommodate future expansion, integration capabilities with existing HRIS, benefits and time-tracking platforms, intuitive usability for both HR and employees, the quality of vendor support and transparent pricing.