Regulatory Environments for Compensation Programs Flashcards
Wage & Hour Laws
General Coverage
- National Labor Relations Act (NLRA)
- Fair Labor Standards Act (FLSA)
Wage & Hour Laws
Narrow Focused
- Davis-Bacon Act
- McNamara-O’Hara Service Contract Act
- Sherman Antitrust Act
- State Labor Law
Discrimination Laws
General Coverage
- Equal Pay Act (EPA)
- Title VII
- Americans with Disability (ADA / ADAAA)
- Age Discrim. in Employment Act (ADEA)
- Family and Medical Leave ACT (FMLA)
- Lilly Ledbetter Fair Pay Act
- Genetic Information Nondiscrimination Act (GINA)
- Uniformed Service Employment and Reemployment Rights Act (USERRA)
Discrimination Laws
Narrow Focused
- Vocational Rehabilitation Act
- State discrimination statutes
Significant Regulation Dates
State
1917 - Work hours and OT
1937 - minimum wage
1938 - Only states establishing labor laws
1941 - constitutionality upheld
What law protects unionized government contractors from competition by nonunionized gonverment contractors paying lower wages? (pay at least the prevailing wage)
Davis-Bacon Act
1931
Purpose - protect unionized contractors
Coverage - Gov’t construction contractors
Provisions - pay based on “prevailing wages”
Enforcement Agency - DOL
Davis-Bacon Act
The Davis-Bacon Act is enforced by what agency?
DOL
1965
Purpose - improve working conditions and pay
Coverage - gov’t services contractors
Provisions - pay based on “prevailing wages”
Enforcement Agency - DOL
McNamara - O’Hara Service Contract Act
What law has the purpose of improving working conditions and pay (prevailing wages) for employees of government services contractors?
McNamara - O’Hara Service Contract Act
The McNamara - O’Hara Service Contract Act is enforced by what agency?
DOL
Which law establishes the minimum wage rate for federal contractors, which may be different from the minimum wage under FLSA?
Executive Order 13658
February 12, 2014
Purpose - Establish minimum wage rate
Coverage - federal contractors
Provisions - Minimum wage updated annually; applies to employees performing work on or in connection with covered federal contracts; must notify employees
Enforcement Agency - Wage and Hour Division of DOL
Executive Order 13658
The Executive Order 13658 is enforced by what agency?
Wage and Hour Divison of DOL
intention of creating better environment for collective bargaining
1935
Purpose - more equitable labor / management environment
Coverage - Employers involved in interstate commerce, with some exceptions
Provisions - Process for representation; rules for bargaining in good faith; controls against unfair labor practices
Enforcement Agency - NLRB
National Labor Relations Act
What law had the intention of creating better environment for collective bargaining, creating a more equitable labor / management environment?
National Labor Relations Act
anti-monopoly
1890
Purpose - preserve competitive environment
Coverage - all employers involved in interstate commerce
Provisions - ensure competitive wage levels
Enforcement Agency - DOL (only workforce issues)
Sherman Antitrust Act
Which law preserves a competitive business environment - removing monopolies?
Sherman Antitrust Act
Workforce issues that arise by the Sherman Antitrust Act are enforced by what agency?
DOL
Related to compensation
This act has a primary focus of “anticompetitive price fixing”
Sherman Antitrust Act
Sherman Antitrust - relation to comp
Antitrust safety zone “safe harbor” statements
- survey is managed by third party.
- data provided is more than three months old.
- there are at least five providers reporting data and no individual’s data represents more than 25% of any statistic.
Independent Contractors vs Employees
Economic Realities Factors Guide
Is worker economically dependent on the ER or in business for themself?
- Integration
- Opportunities for profit/loss
- Relative investment
- Special business skills and initiative
- Permanency of relationship
- Nature/degree of control
What is the primary objective of the FLSA?
WORKERS’ RIGHTS
*it is the principal federal statute that influences the design of direct compensation programs.
What are (3) purposes of the FLSA?
- Establish a minimum wage rate.
- Eliminate detrimental working conditions.
- Protect the educational opportunities of youth.
Who does the FLSA primarily cover?
Employers who engage in interestate or foreign commerce and have $500,000 in sales.
(3) Amendents expanded coverage to include 90% of the American Labor Force
Inclusion of health care, retail, education, construction, laundry, federal, state, and local goverment and congress.
Who is the enforcing agency for FLSA?
DOL
What are the specific provisions of FLSA?
- minimum wage
- employment categories - EX/NE
- hours of work
- rate of pay (OT and banked time)
- Worker Economic Opportunity Act
- record-keeping requirements
- violations and penalities
What agency enforces FLSA?
DOL, administered by Wage and Hour Division
What are the two categories of employees as determined by FLSA?
Non-exempt and Exempt
Types of Exemption Tests
- Salary Basis Test
- Salary Level Test
- Executive Standard Test
- Administrative Standard Test
- Learned Professional Standard Test
- Creative Professional Standard Test
- Computer Employees
- Outside Sales Test
- Type of EXEMPTION TEST
- employee regularly receives a **predetermined amount of compensation **each pay period
- not subject to any reductions based on quality or quantity of work
- must recevie the full salary for any woeek wihtout regard to number days or hours worked.
Salary Basis Test
Exceptions for Salary Basis (exemption) Test
Computer professionals making $27.36 per hour or more - can be classified as exempt
outside sales, licensed or certified docs
lawyers
teachers
employee on FMLA miss part of day for medical reasons - can dock pay wihtout jeopardizing salaary basis test
Salary Basis Test (exempt employees)
Proper Deductions from Salary
- absence from work for one or more full days for personal reasons other than sickness or disability
- absence from work for one or more full days for personal reasons other than sickness or disability - if deductions are made under a bona fide plan, policy or practice
- to offset any amounts recevied as payment for jury fees, witness fees or military pay
- penalties if in good faith for violating safety rules of major significance
- unpaid disciplinary suspension of one or more full days - imposed in good faith for violations of workplace conduct rules
- proportionate part of EE’s full salary may be paid for time actually worked in the first and last weeks of employment
- Type of EXEMPTION TEST
- DOL establihsed salary level of $684 per week ($35,568 annual)
- anything below the salary would be required to be non-exempt
Salary Level Test
Exceptions for Salary Level (exemption) Test
- Outside sales
- licensed or certified docs
- lawyers
- teachers
Exemption Categories
* exempt from minimum wage, OT, and certain recod-keeping requriemetns
* DOL established standard test for each exemption to dtermine fi employee fits into one of the groups
* exempt from iminimum wage and OT only if EE meets all requirements of the tests.
- Executive
- Administrative
- Professional (Learned and Creative)
- Computer
- Outside Sales
- Highly Compensated
Exemption Categories - CRITIERIA
Primary Duties
Salary requirement (except for outside sales)
Exemption Test Type
* Primary duty: Mgmt of enterprise, recognized department or subdivision
* Regularly direct the work of at least 2 or more F/T EEs
* have authority to hire or fire - or make recommendations to
* Minimum salary - must be paid on a salary basis and at established minimum weekly rate and paid the full salary for workweek regardless of hours worked that week
Executive Standard Test
Exemption Test Type
* Primary duty: perform office or non-manual work directly related to management or general business ops (things that support making $$ for org)
* exercises discretion and independent judgment with respect to matters of significance (financial impact)
* Minimum salary - must be paid on a salary basis and at established minimum weekly rate and paid the full salary for workweek regardless of hours worked that week
Administrative Standard Test
Exemption Test Type
* Primary duty: perform work requiring advanced knowledge, defined as work that is predominantly intellectual in character and includes work requiring the consistent exercise of discretion and independent judgment
* high level / advanced education or training required
* Minimum salary - must be paid on a salary basis and at established minimum weekly rate
Learned Professional Standard Test
Exemption Test Type
* 1991 - pulled out of the “professionals exemption test”
* Qualifying Wage: must exceed 6.5X the federal minimum wage at the time of amendment (1991) = $27.625
* Minimum salary - must be paid on a salary basis and at established minimum weekly rate
* Special considersation: hourly paid computer employees making less than the qualifying wage are automatically non-exempt.
* Qualifying Duties: related to high technical computer tasks and duties
1. applying systems analysis techniques and procedures
2. design, develop, document, analyze, create, test or modify computer systems and programs
Computer Employees
Exemption Test Type
* Minimum salary - at least $107,432 / year and at least ONE exempt primary duty test
* must include at least $684 per week in base salary
Highly-Compensated Exemption Test
Which of the following acts is focused on ERs w/ construction contracts
- Davis-Bacon Act
- Nat’l Labor Relations Act
- McNamara-O’Hara Act
- Sherman Antitrust Act
Davis-Bacon Act
Exemption Test Type
* Primary duty: selling or obtaining orders away from employer’s place of business
* exception - commissioned inside sales employees or service/retail estabs. where over 50% of income is from commission and pay is at least 1.5X minimum wage
* Minimum salary - NONE
Outside Sales Test
Exemption Test Type
* Primary duty: perform work requiring invention, imagination, originality or talent in a recognized field of artistic endeavor
* Minimum salary - must be paid on a salary basis and at established minimum weekly rate
Creative Professional Standard Test
Which EEs are covered by NLRA?
- City, State and Fed’l Gov’t EEs
- Airline and Railroad EEs
- EEs who work for companies that sell goods in various states
EEs who work for companies that sell goods in various states
Which of the following acts is focused on ERs w/ service contracts w/ th
- Davis-Bacon Act
- Sherman Antitrust Act
- McNamara-O’Hara Act
- Nat’l Labor Relations Act
McNamara-O’Hara Act