Compensation & Benefits ( Chapter 17); Government & Legal Issue in Compensation

Establishing Comparable Worth Plan ( 4-Basic Steps)

1. Adopt a single "gender neutral" point job evaluation plan for all jobs within a unit 2. All jobs with equal job evaluation results should be paid the same 3. Identify the percentages of male and female employees in each job group 4. The wage-to-job evaluation point ratio should be based on the wages paid for male-dominated jobs

Exemptions from minimum wage & Overtime Provisions

1. Executive Exemption 2. Administrative Exemption 3. Professional Exemption 4. Computer Employee Exemption 5. Outside Sales Exemption 6. Highly Compensated Employees

Fair Labor Standards major provisions

1. Minimum wage 2. Hour of Work 3. Child Labor

Job Hierarchy

A grouping of jobs based on their job-related similarities and differences and on their value to organization's objectives

Job Classifications (Grade)

A grouping of jobs that are considered substantially similar for pay purposes

Title VII of the Civil Rights Act of 1964

A major piece of legislation prohibiting pay discrimination. It is mush broader in intent than the Equal Pay Act, forbidding discrimination on the basis of race, color, religion, sex, pregnancy, or national origin

Comparable Worth

A policy that women performing jobs judged to be equal on some measure of inherent worth should be paid the same as men, excepting allowable differences, such as seniority, merit, production-based plans, and other non-sex related factors

Pay Equity

A policy that women performing jobs judged to be equal on some measure of inherent worth should be paid the same as men, excepting allowable differences, such as seniority, merit, production-based plans, and other non-sex related factors

The Equal Pay Act ( EPA) of 1963

An amendment to the Fair Labor Standards Act of 1938 that prohibits pay differentials on jobs that are substantially equal in terms of skills, efforts, responsibility, and working conditions, except when they are the result of bona fide seniority, merit, production-based systems, or any other job-related factor other than sex

Fair Labor Standards Act of 1938

Covers all employees (with some exceptions) of companies engaged in interstate commerce or in the production of goods for interstate commerce

Value Discrimination

Discrimination that focuses on the pay women and minorities receive for the work they perform. Discrimination occurs when members of these groups are paid less than white males for performing substantially equal work

Minimum wage Legislation

Intended to provide as an income floor for workers in societies less productive jobs.

Age Discrimination in Employment Act (ADEA) of 1967 (Amended 1978, 1986, and 1990)

Legislation that makes non-federal employees age 40 and over a protected class relative to their treatment in pay, benefits, and other personnel actions. The 1990 amendment is called the Older Worker Benefit Protection Act

Living Wage

Pay legislation in some U.S. cities that require wages above the federal minimum wage. Often applies to in City government employees

Gender Pay Equity

Same as comparable worth

Prevailing Wage Laws

Set pay for work done to produce goods and services by the federal government. A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases

Access Discrimination

The denial of particular jobs, promotions, or training opportunities to qualified women or minorities

Disparate Treatment

Discrimination theory that outlaws the application of different standards to different classes of employees unless the standards can be shown to be business-related

Disparate Impact

Discrimination 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