Chapter 17: Government and Legal Issues in Compensation

Most Recent Goverment Regulation

ACA

Valuation Discrimination

Actual pay women and men receive for the job they perform

Financial Control

Extent to which worker has reimbursed business expenses; Extent of the worker's investment; extent to which the worker makres his or her services available to the relevant market.

Pay Equity

Gender Pay Equity; equal pay for work of comparable worth

US Federal Pay Regulations

Main focus of legislation: Pre '60's: wages '60s-'90s: civil rights Recent: addressing changing workforce and technology

Over Time and Hrs of Work

OT: FLSA requires payment at 1 and 1/2 times the standard for working more than 40 hrs per week. Goal is to make less costly hiring another person VS. Paying OT. But, not so much cost effective anymore since conidtions that inspired legislation has changed since law has passed.

FLSA Restrictions Hrs and Conditions of Employment

Persons under 18 cannot work in Hazardous jobs. Persons under 16 cannot be employed in jobs involving interstate commerce except for nonhazardous work for a parent or guardian

Disparate Impact

Practices hav a differential effect on members of unprotected groups

Title VII of Civil Rights Act 1964

Prohibits discirmination of Sex, Race, Color, Religion, national origin. Age Discrimination Act, and Americans with Disabilities Act

Employee or Ind Contractor?

Regulations that help classify a workers as an employee or independent contractor. Tax law inforced by IRS

What can Comp Do?

Self Audits

Fair Labor Standards Act (1938)

Three Major Provisions: Minimum Wage, Hours of Work, Child Labor

Disparate Treatment

Unequal treatment; applies different standards to different employees

Government: Part of the Employment Relationship

We need laws to protect pay fairness and to ensure compliance

Behavioral Control

Whether the busines has right to control how task is done.

Administrative Exmpetions

1) Employee primary duty must be the performance of office or manual work directly related to the management or general business operations of the employer or the employers customers 2) Employee's primary duty inlcudes the exercise of discretion and independent judgement with respect to matters of significance.

What Time is Covered in Hrs of Work and OT?

1) OSHA, 2) Portal to Portal Act; "integral" time to principal activity is compensable (ie: miners getting to job site), 3) On Call No legal requirements to pay, unless limits person's activities while on call.

Effect of Government Decisions on the Labor Market

Demand: Government is a big employer (18% of US labor Force). Supply: Affects labor supply though legilsation

Access Discrimination

Denial of particular jobs, promos or training to qualified women or minorities