Compensation and Benefits Flashcards
Act that determined that older workers may not be discriminated against by performance-based pay systems.
Age Discrimination in Employment Act (ADEA), 1967
Practice where an un-contracted medical provider bills a patient for all charges not paid for by the patient’s insurance plan, even if those charges are above the plan’s usual and customary rate or are considered medically unnecessary.
Balance billing
Basic compensation an employee receives, usually as a wage or salary.
Base pay
Combining several salary grades or job classifications with narrow pay ranges into one band with a wider spread.
Broad-banding
Pay that employees receive when they are called back for an extra shift in the same workday.
Call-back pay
Type of health-care plan in which the physician is paid on a per capita (per head) basis rather than for actual treatment provided.
Capitated health-care plan
Form of defined benefit plan that defines the promised benefit in terms of a hypothetical account balance and features benefit portability.
Cash balance plan
Allows a publicly traded company to take back previous executive incentive-based compensation in specific circumstances.
Clawback provision
Payment made to salespeople, usually calculated as a percentage of sales.
Commission
Concept that states that jobs requiring comparable skills, effort, responsibility, and working conditions filled primarily by women should have the same job classification and salary as similar jobs filled by men.
Comparable worth
Pay rate divided by the midpoint of the pay range.
Compa-ratio
Reflect the dimensions along which a job is perceived to add value to the organization; used to determine which jobs are worth more than others.
Compensable factors
Act that provides individuals and dependents who may lose medical coverage with opportunity to pay to continue coverage.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Instrument that measures change over time for costs of a group of goods and services
Consumer price index (CPI)
Healthcare options intended to help employers better control costs while allowing employees to make more decisions about their health care.
Consumer-directed health care
Eliminates the duplication of payments when an employee, spouse, or dependents have health coverage under two or more plans.
Coordination of benefits
Specified percentage (typically 20% to 30%) of covered medical expenses that employee pays or fixed dollar amount that covered person pays each time he or she visits a physician or purchases prescription drugs.
Copayment
Act that prohibits federal contractors from receiving kickbacks from employees or subcontractors for wages earned on federal projects.
Copeland “Anti-Kickback Act, 1934
Periodic compensation payment given to eligible employees regardless of their performance or organizational profitability; usually linked to inflation.
Cost-of-living adjustment (COLA)
Trust created exclusively for the purpose of paying the qualified education expenses of a designated beneficiary.
Coverdell Education Savings Account (ESA)
Act that established prevailing wage and benefit requirements for contractors on federally funded construction projects in excess of over $2,000.
Davis-Bacon Act, 1931
Initial amount of covered medical expenses an individual must pay before receiving paid benefits under a health-care plan.
Deductible
Plan that provides income to employees at some future time as compensation for work performed now.
Deferred compensation
Plan that promises employee a retirement benefit amount based on a formula.
Defined benefit plan