Compensation - Chapter 17

Lily Ledbetter Fair Pay Act of 2009

Employers can be liable for current pay differences that are a result of discrimination (as defined under existing laws such as Title VII of the Civil Rights Act that occurred many years earlier

Sarbanes-Oxley Act of 2002

Executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company

Independent contractor status

IRS has classification to categorize someone as independent contractor an Employment Retirement Income Security Act (ERISA) Exhibit 17.7 page 638

Worker Economic Opportunity Act 2000

Income from most stock plans need not be included in calculating overtime pay

ILO

International Labor Organization A source of free information on labor laws throughout the world

OFCCP

Office of Federal Contract Compliance Programs enforces affirmative action plans The DOL's Office of Federal Contract Compliance (OFCCP) monitors and enforces compliance with equal employment opportunity laws, primarily Executive Order 11246, which applies to companies that do business (federal contractors and subcontractors) with the federal government.

compensatory time

Paid time off from a job that is offered in lieu of cash for overtime.

Clawbacks

Requires public companies to set policies to allow executive compensation to be taken back if it was based on inaccurate financial statements that did not comply with accounting standards

Disparate Treatment

intentional discrimination unequal treatment applies different standards to different employees for example: asking women but not men if they plan to have children

EEOC (Equal Employment Opportunity Commission)

monitors and enforces compliance with equal employment opportunity lase, including Title VII of the Civil Rights Act, ADA, ADEA, PDA, and the Equal Pay Act

living wage laws

a wage that enables workers to support a decent life for themselves and their families not part of FLSA; there are 140 ordinances in the US provides a minimum wage tailored to living costs in an area often these ordinances require health insurance, vacations, sick pay, job security, and provide incentives to unionize

Disparte-Impact

discriminatory theory that outlaws the application of pay practices that may appear to be neutral, but have a negative effect on females or minorities unless those practices can be shown to be business- related unintentional discrimination

Role of executive branch in compensation

enforces laws through agencies and its other bodies; e.g. The Department of Labor (wage and hour division)

Walsh-Healy Act of 1936

extends prevailing-wage concept to manufacturers or suppliers of goods for government contracts

Minimum Wage

a minimum price that an employer can pay a worker for an hour of labor

Equal Pay Act

1963 law that required both men and women to receive equal pay for equal work Forbids wage discrimination on the basis of gender if employees perform equal work in the same establishment differences in pay between men and women doing equal work are legal if these differences are based on any of these affirmative defenses: 1. seniority 2. merit or quality of peroformance 3. quality or quantity of production 4. some factor other than sex

Occupational Safety and Health Act

1970. A US labor law governing the federal law of occupational health and safety in the private sector and federal government in the Unities States. It was enacted by Congress and was signed by President Richard Nixon.

ADEA

Age Discrimination in Employment Act forbids discrimination against any person aged 40 or older in hiring, firing, promotion, or other aspect of employment.

Department of Labor

The DOL's Wage and Hour Division monitors and enforces compliance with the FLSA, Davis Bacon, Walsh Healey, and other acts

Reasons for the differences in the gender "pay gap"

The sources of the gender gap appear to center on differences in work/occupational attainment and work-life challenges.gaps. It appears that differences in the work/occupation (e.g., technician vs. clerical) and differences in work-related behaviors (e.g., work-life balance challenges) are central to understanding the remaining gender wage gaps.There is evidence that women of all ethnic groups are more likely than men to seek part-time and flexible work arrangements and that they are more likely than men to interrupt their careers due to family responsibilities. There is also evidence that gender differences in occupational choices and preferences continue to exist.Women were also underrepresented in blue-collar jobs, including higher-paying precision production and craft occupations.

1964 Civil Rights Act

This act prohibited Discrimination because of race, color, sex, religion, or national origin by employers or labor unions

Davis-Bacon Act of 1931

This law requires the payment of "prevailing wages" to employees of contractors and subcontractors working on government construction projects.

TARP

Troubled Asset Relief Program: financial institutions receiving funds from TARP have restrictions on compensations. Prohibits use of several compensation programs, including, but not limited to bonuses, retentions awards, and incentive pay, except where par of a preexisting employment contract, during the period TARP funds are received. Restricted stock is permitted if one-third or less of annual compensation. In firms receiving the largest TARP assistance, restrictions cover senior executives and next 20 highest paid employees

Portal-to-Portal Act

U.S. act that defines what is included as hours worked and is therefore compensable and a factor in calculating overtime.

access discrimination

When people are denied employment opportunities, or "access" to jobs, promotions, training opportunities based on their race, sex, age, or other factors not related to productivity.

comparable worth

Women should be paid salaries equal to men for equivalent job responsibilities &skills /

Trend in pay gaps

across all races combined and limiting the analysis to fulltime, year round workers, women's median annual earnings compared to men's has changed from 60.2 percent to 80.5 percent from 1980 to 2016. The wage gap between men and women varies according to wage level, being relatively large at very high wages and even larger at very low wage levels. Since the 1990s, the gap at the top narrowed slightly, due mostly to education gains by women. The gap at the bottom narrowed more, mostly due to increases in overall years worked and years worked with current employers by women. Asian men's earnings have risen over time to now be higher (by 25 percent) than those of white men. Black to white men's earning ratios have varied between about 68 to 79 percent, and the ratio of Hispanic to white men's earnings varied from about 55 to 72 percent. We see a pattern similar to what we saw with men, with Asian women having the highest earnings. Perhaps this is in part because a larger percentage of Asian women have a bachelor's degree. The gap between black and white women is less than the gap between black and white men, again perhaps partly because of education differences, as black women are more likely than black men to have a college degree.

Government interest in compensation policy

are whether procedures for determining pay are fair (eg, pay discrimination), safety nets for the unemployed and/or those unable to work (eg, unemployment compensation, workers compensation) and work protection (eg, overtime pay, minimum wage, child labor restrictions) Also, they are an employer federal government influences overall economic growth / demand and business activit through its monetary policy (level of interest rates and money supply)

executive order 11246

enforced by the Office of Federal Contracts Compliance Programs (OFCCP) prohibits discrimination on the basis of race, color, religion, sex, or national origin and requires covered government contractors to file affirmative action plans that have 3 parts: 1. utilization analysis compares the contractor's workforce to the available external workforce 2. goals and timetables are develop for achieving affirmative action 3. action steps are developed for achieving these goals and timetables

Exempt and Non-Exempt Statuses

exempt from overtime and minimum wage provisions of the FLSA / non-exempt positions must comply with FLSA Exemptions include: Executive / administrative / professional / some computer employees / outside sales / highly compensated employees Salaries for exemption testing: if lower than $679 / week ($35,308 per week)

Prevailing Wage Laws

set pay for work done to produce goods and services contracted by the federal government / sometimes this overstates the actual wage /

FLSA (Fair Labor Standards Act)

sets minimum wage, hours of work, overtime premiums, prohibits child labor / enforcement body: Wage and Hour Division of The Department of Labor / current federal minimum wage is $7.25