Compensation & Benefits Flashcards
A law set in place that affects most private and public employment. It requires employers to pay covered employees (who are not otherwise exempt) no less than the federal minimum wage and overtime pay of one-and-one-half times the regular rate of pay for all hours worked over 40 in a week.
Fair Labor Standards Act (FLSA)
A requirement under the FLSA that an employee must be at least 16 years old to work in most non-farm jobs and at least 18 to work in non-farm jobs declared hazardous by the Secretary of Labor. Children 14 and 15 years may work outside school hours in various non-manufacturing, non-mining, non-hazardous jobs.
Child Labor
A requirement under the FLSA where employers must keep records for each covered, nonexempt worker. There is no required form for the records, but the records must include accurate employee data, hours worked, and wages earned.
Recordkeeping
A requirement where the FLSA provides an exemption from both minimum wage and overtime pay. To qualify, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less that $684 per week.
Exempt Status
If the individual is an ________________ ______________, the employer is generally relieved of responsibility for withholding and paying employment taxes, providing benefits, and ensuring protections of other employment laws.
Independent Contractor
This wage law requires equal pay for men and women doing substantially equal work on jobs which require equal skill, effort, and responsibility and are performed under similar working conditions.
Equal Pay Act
This amended Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, and the Rehabilitation Act to clarify compensation practices that allow pay discrimination to be determined with the issuance of each new paycheck rather than the old system whereby the complainant had only 180 days to file a complaint from the initial discriminatory wage decision.
Lilly Ledbetter Fair Pay Act
A federal insurance program that provides monthly payments to eligible workers and their families when a worker retires, dies, or becomes disabled. It’s funded by the employee and employer contributions and collected by IRS through payroll taxes under the Federal Insurance Contribution Act (FICA).
Social Security/Retirement Legislation
This act provides health insurance and reasonable job security for military personnel and other emergency deployments.
Uniformed Services Employment
This act includes a broad ban against age discrimination and specifically prohibits denial of benefits to older employees (over the age of 40) since they are often more expensive to provide with health care coverage.
Age Discrimination in Employment Act (ADEA)
A benefit through a federal-state program designed to provide qualifying workers with financial security during temporary unemployment. This is usually provided while workers are seeking employment after loosing a job such as layoffs.
Unemployment Compensation Laws & Regulations
This act requires reporting and disclosure of employment sponsored retirement benefit plans. Retirement plans are not required by law, but when offered, must comply with this act’s standards.
Employee Retirement Income Security Act (ERISA)
Requires employers to provide the same insurance, leave pay, and additional support to pregnant employees as would be provided to any employee with medial leave or a disability.
Pregnancy Discrimination Act
The act applies to employees with 20 or more workers and who have a group health plan to offer continued coverage to their employees and their dependents for an additional 18 months under qualifying conditions (reduction of hours) in which coverage would normally end.
Consolidated Omnibus Budget Act
This act requires employers with at least 50 employees to provide up to 12 workweeks of unpaid leave for covered events during a 12-month period.
Family and Medical Leave Act (FMLA)
This act is also known as Obamacare. The logic behind the act is to share responsibility for health care and it ensures that all Americans have access to quality, affordable, health care. The law requires all Americans to have a minimum amount of health care coverage to reduce everyone’s overall cost.
Patient Protection & Affordable Care Act
The three primary goals of a compensation program
Recruitment, Retention & Motivation
The psychological and intellectual rewards in a position. An example would be having the opportunity to perform meaningful work or gain a sense of accomplishment.
Intrinsic Rewards
Rewards that derive from external sources to the job. They include rewards such as prestige, positive feedback, and financial rewards.
Extrinsic Rewards
_______ ____________ should be designed to support the company’s overall business strategies and to provide management with an internal control mechanism for achieving compensation objectives.
Pay Structures
The concern that the organization must pay workers performing similar jobs a similar rate of pay. It is the perception workers have of their pay levels being fair based on their workload.
Internal Equity
This act permits wage differentials between sexes if authorized by the Equal Pay Act.
The Civil Rights Act
This act allows wage differentials if they are based on: a seniority system, a merit system, a system that measures earning by quantity or quality of production, or any factor other than sex.
The Equal Pay Act (EPA)
The value differential between the organization’s reward system relative to employees in other firms. Usually the value differential is defined by employee perception of local market pay practices.
External Equity
