Compensation and Employment Law Flashcards
What are 2 ways to classify compensation?
Direct & Indirect
What is direct compensation?
Direct compensation involves monetary payments to employees for time worked or results obtained.
What is indirect compensation?
Indirect compensation involves expenditures made by an employer on behalf of all employees and is typically referred to as “fringe benefits.”
Components of direct compensation
Base salary
Premium payments (overtime, shift differentials, longevity pay.)
Contingent programs (incentive plans or achievement award, merit pay)
Components of indirect compensation
Protection programs -
(Social Security, Worker’s Compensation, Unemployment Compensation, pension plans, health, dental, vision, life, accidental death and long term disability insurance.)
Paid Leave -
(vacations, holidays, jury duty, sick leave, military leave.)
Which of the following is NOT direct pay?
A. Long term incentive pay
B. Cash given as recognition and achievement awards
C. Differential Pay
D. Deferred pay
D
Which of the following is not indirect compensation?
A. Legally required benefits
B. Pay programs for selected employees
C. Income replacement programs
D. Flexible benefit plans
B
What are the key components of a compensation and classification system?
Job Analysis
Job Descriptions
Salary Surveys
Job Evaluations
Pay Structures
Policies and Regulations
What is job analysis?
Job analysis is the process of gathering and analyzing data regarding all aspects of a position, including the following:
Tools, materials, equipment
Methods or processes
Specific duties
Critical tasks
Outcomes of job for which employee will
be held accountable and evaluated
Behaviors, Skills, Knowledge, Experience
What methods are used in Job Analysis?
Questionnaire - open-ended and highly
structured
Interview
Observation
Work Diary
Behavioral event interview
What is the first and most important step in conducting job analysis?
Communicate with employees
What are we doing and why? Role of the employees Final product
What is developed using the results of job analysis?
Job description
What aspects of a position do job descriptions summarize?
Tasks, Responsibilities, Requirements
What is job evaluation?
The process of determining the worth or value of a job, among and within job categories in an organization
What 2 things must be done first before job evaluation?
Job analysis and producing an accurate job description
How does job analysis, job descriptions, and job evaluation relate to FLSA?
These processes determine whether or not a position is exempt from FLSA overtime requirements
What features make up a good job description?
- Job code and title
- Purpose of position
- Essential duties
- Minimum Qualifications
- Physical / Mental Qualifications
- KSA’s
What are KSA’s?
Knowledge, Skills, Abilities
What components of a job description is critical in maintaining compliance with the ADA?
Essential Functions
Physical and mental requirements
What are the benefits of a good job description?
Promote employee ownership and
interactive management
Document the evolution of job duties
Evaluate employee performance
Promote legal compliance
Maintain a consistent salary structure
What are duty statements also known as?
Essential functions
True or false: A duty statement should focus on primary, current, normal, daily duties and responsibilities of a position, as well as incidental duties, employee’s qualifications, or temporary assignments.
False - A duty statement should NOT focus on incidental duties, employee’s qualifications or temporary assignments.
Well written duty statements contain __________ ___________ which accurately describe what is being done.
Action verbs
A duty statement should be __________ based to allow for alternate means of performing duty, technology changes, employee and supervisor preferences and accommodations of workers with disabilities.
Outcome
Duty statements contain 3 parts:
Action verb, Object of the verb, Purpose
The ADA describes a qualified individual with a disability as
A person with a disability who can fulfill, with or without reasonable accommodation, the requisite skill, experience, education, and other job related requirements, and who can perform the ESSENTIAL FUNCTIONS of such position.
What are 5 types of physical demand of a job?
Strength
Movement
Auditory
Taste / Smell
Vision
What aspects of a job should be described in a good job description?
Mental functions, Relations with Others, Physical demands (strength, movement, auditory, taste / smell, vision), Environmental conditions / Physical surroundings, Equipment used, Hazards