Compensation Exam Three (MHR 386)
Describe the exporter strategy and at least one benefit to using it
"Headquarters Knows Best" Pay system designed at headquarters and used everywhere + Easier time moving people to other locations
Describe the localizer strategy and at least one benefit to using it
"Think Global, act Local" Pay systems consistent with local location +competitive advantage with tailoring to local customers
Describe the globalizer strategy and at least one benefit to using it
"Think and Act Globally and Locally" An "in between" seeks common system but its obtained through compromise from all locations and headquarters + Focus on global business strategy but bring in some tailoring
How do you calculate the current year's rise?
% Pay Level Rise = 100% (Avg. Pay Yr. End - Avg. Pay at Yr. Start / Avg. Pay Yr. Start)
What special treatment do special groups like executives receive?
-Add-on packages not received by other employee -Compensation components entirely unique to the organization
What is are some tips for Upping Hours
-Balance hours -Keep an eye out for signs of burnout
What is the Disadvantages of Upping Hours
-Burnout of employees
What is the Advantages of Upping Hours
-Company is in a better position to ramp it up, when it gets better because they still have the employees
What is the Advantages of Controlling benefits
-Company is in a better position to ramp it up, when it gets better because they still have the employees -Not losing people
What else should factor into decisions about whether to do business in other countries?
-Cost of living -Living standards
What are the effects on pay systems centralization of pay?
-Decentralized -Centralized This evolves over time
What is the Disadvantages of Controlling average cash compensation
-Employees will be very aware - which will lead to more immediate outrage
What are the objectives of the balance sheet approach?
-Ensure mobility of people in most cost effective manner -Ensure that expatriates neither gain nor lose financially -Minimize adjustments required of expatriates and their dependents
What is are some tips for Controlling average cash compensation
-Have empathy -Know procedure for rolling these out
What is are some tips for Controlling benefits
-Have empathy -Understand the impact of change
What are some reasons to utilize traditional expatriates (PCNs) and TCNs?
-Helps employees develop an international perspective -The position may require a proven domestic veteran -Skills required for a position may be readily available in the local labor pool
What is are some tips for Reducing Headcount?
-Its more cost effective to keep a steady number of employees instead of going up and down with the numbers -Look at contingent and steady employees
What are some reasons to hire LCNs?
-Know local conditions -Have relationships with local customers, suppliers, and government regulators -Company saves relocation and other associated costs -Avoids uncertainty about employees adapting to the local culture -Satisfies nationalist demands for hiring locals
Which alternative reward systems do unions prefer and why?
-Lump-sum awards -Employee stock ownership plans -Pay-for-knowledge plans -Gain-Sharing plan -Profit-Sharing plans
What are the effects on pay systems regulations?
-Maximum hours of work -Restrictions in hiring and firing -Works councils
Deferred Wage Increase
-Negotiated at time of contract negotiated -Time and amount specified up front -What increase you will get
What are the alternatives to the balance sheet approach? Be able to describe each.
-Negotiationsation -Modified Balance Sheet -Decrease Allowances -Lump-sum/Cafeteira Plan -Using more LCNs
What is included in regards to people who are qualified but disabled.
-People who have a disability -People who had a disability (cancer) -People who are regarded to have a disability (Facial disfigurement)
Be able to describe Hofstede's cultural dimensions
-Power distance -Individualism - collectivism -Uncertainty avoidance -Masculinity - Femininity -Long term - short term
What is the Disadvantages of Reducing Headcount?
-Regulatory laws that make this difficult (Age discrimination act) -Not handled well where it affects employee relations (retention, motivation of employees, turnover) -Costly (Administrative costs and unemployment costs)
What does an employer have to pay if they hire independent contractors?
-Social security -Unemployment -Workers compensation -Tax Law -Employee Retirement Income Security Act
What is the Advantages of Controlling average cash compensation
-These are reversible
What is the Advantages of Reducing Headcount?
-To degree of targeting headcount you could get through without effecting top performers (financially) -Reducing salary and benefits (only one that reduces both)
What is the Disadvantages of Controlling benefits
-Upsetting expectations of employees -Hard ships from administration side -Phone calls with many questions
How have they suggested that pay may be reined in?
-Use of tally sheet -Increase Government Regulation
What have they been most successful in improving in rater training?
1. Adequate Observation 2. Employee Involvement 3. Feedback
Disparate treatment is judged on intent, what are the three types?
1. Blatant: Clear EX) we will not hire women or minorities for this job 2. Mixed Motive: Other reasons for not hiring along with discrimination 3. Inference: Have to infer it occured and prove it **All are illegal
What laws are enforced by the EECO
1. Civil Rights Act 2. Age Discrimination In Employment Act 3. Americans with Disabilities Act 4. Lily Ledbetter Fair Pay Act 5. Pregnancy Dicrimincatidn Act
What are the three aspects of cost of living?
1. Consumer Price Index 2. Pay Surveys 3. Personal Expense Budget
What influences how much the increase is in top-down budgeting?
1. Current years rise 2. Ability to pay 3. Competitive market pressures 4. Turnover effects 5. Cost of living
How do the policies and practices of unionized firms vary from nonunionized firms with respect to the wage adjustment provisions?
1. Deferred Wage Increase 2. Reopener clause 3. Cost of living adjustment or Escalator clause
What are the steps of a OFCCP Review?
1. Desk Audit 2. On-site Review 3. Off-site Review 4. Conclusion
What are the three dimensions related to wage structure?
1. Division between direct wages and employee benefits 2. Two-tier pay plans 3. Relationship between workers wages and pay of supervisor in union and nonunion environments
What laws are enforced by the OFCCP
1. Executive Order 11246 2. Davis-Bacon Act 1931 3. Walsh-Healey Public Contracts Act 1936 4. Service Contract Act (SCA) 1965 5. National Foundation for the Arts and Humanities Act 1965
What Laws relate to basic protection?
1. Fair labor standards act 2. Minimum wage vs living wage 3. Independent contractors vs employee 4. Davis-Bacon Act 1931 5. Walsh-Healey Public Contracts Act 1936 6. Service Contract Act (SCA) 1965 7. National Foundation for the Arts and Humanities Act 1965
What are the three things Unions stress when it comes to alternative reward systems?
1. Group based perfoamce measures 2. Equal payouts to all members 3. Objective measures, based on past performance
What are the different types of conclusions in a HACCP Review?
1. Notification of compliance/closure letter 2. Justice department 3. Show-Clause Statement
What are some controls on managers' pay decisions?
1. Range Minimum and Maximums 2. Broad Ranges 3. Compa-ratios 4. Variable Pay 5. Analyzing Cost 6. Analyzing Value-added
Describe the different categories of rater training
1. Rater-error Training 2. Performance-dimension Training 3. Performance-dimension Training
What are the elements of expatriate compensation?
1. Salary 2. Taxes 3. Housing 4. Allowances and premiums
What types of rules are placed on child labor through the FLSA?
1. The type of work 2. The hours worked
Why have companies been moving away from long-term incentives?
Because anger against stock options and stockholders upset with ease options have been granted and exercised
Pay-for-knowledge plans
Because it is objective, testing used.
Why do executives receive special treatment?
Because they are strategically important to the company and their position has built in conflict
How is top-down budgeting done?
Begins with an estimate for entire organization, then it is allocated to managers who will allocate to subordinates
Race, sex, appearance bias
Bias against people who are not as "attractive" EX) Facial symmetry, height of men
What pay counts when calculating an overtime rate?
Bonus and stock options are not counted when calculating overtime rate
Which method of budgeting relies heavily on employee pay histories?
Bottom-up
How do you manage labor costs through Number of employees?
By Reducing Headcount
What is a local country national (LCN)?
Citizen of a foreign country where the company is operating
_____ has produced more comparable-worth pay increases than any other approach
Collective bargaining
How do you calculate a compa-ratio?
Compa-Ratio = (Avg. rate actually paid / Range midpoint)
What is Agency theory?
Compensation should ensure that: executives have the best interests of stockholders during decision making CEO's make decisions that are not always in the economic best interest within the organization
_____ is an example of a country with a highly decentralized approach to pay setting with higher wage flexibility
The United States of America
What is a works council?
It is NOT a union. It is formed by any business unit, it works separate from a union but members can still be part of the union. Work council must be consulted in regards to strikes by unions
How is Executive Order 11246 different Title VII?
It is different because who they apply too. 11246: Applies to federal contractors and subcontractors Title 7: Apples to Employees
How does the relationship between worker wages and pay of supervisors in union and nonunion environments vary?
It is less of a gap between a manger gap and workers pay is more substantial in a non union environment. **This is not coming at the expense of the managers in union firms,they receive more pay than nonunion firms, the gap is what is really narrowed.
Which of the following is NOT a provision of the Fair Labor Standards Act of 1938?
It requires that employers provide 15 weeks of medical leave to employees
Which of the following is true of the localization approach to expatriate compensation?
It ties salary to the host country's salary scales
How have jobs of comparable worth been used to prove discrimination?
Job evaluations have been used to determine value of jobs and to make an argument that jobs are similar because of the evaluation done. Standard must do two things: Must permit jobs with content dissimilar jobs to be considered equal Must permit pay differences for dissimilar jobs that are not equal
How do you calculate labor costs?
Labor Cost = # employees + Hours * (Avg. cash compensation + Avg. benefits)
Under the _____, employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier
Lilly Ledbetter Fair Pay Act
What is bottom-up budgeting?
Lower level managers help to decide
How is bottom-up budgeting done?
Lower level managers recommend what pay increases should be in the next coming yea
Masculinity - Femininity
M: Traits are aggressive EX) US F: Traits are nurturing EX) Denmark
What is the Dodd Frank Act?
Made executive compensation to be monitored more closely
What is the Equal Pay Act 1963
Makes it discriminatory to pay women less than men for equal jobs
Which of the following statements about evolution and change in the traditional German model is TRUE?
Many of the changes in Germany are the result of global competitive pressures and technological changes
What is Perquisites or perks
Most common perks: use of private jets, first class when flying, use of corporate cars
Adequate Observation
Need adequate time to observe and to truly understand why it's important
Feedback
Needs to have ways to flag concerns with performance systems
What agency enforces Executive Order 11246?
OFCCP
Justice department
OFCCP doesn't want to deal with you anymore and you are given to justice department
What can you do about Faulty memory
Observe more, Keeping better records
Lump-sum/Cafeteira Plan
Offer more choices by giving the lump sum and not saying what it has to be used for
How do the policies and practices of unionized firms vary from nonunionized firms with respect to other differentials?
Other differentials might include geographic areas and cost of living, unions understand this a little bit more but they still have the preference of keeping uniform pay.
Faulty memory
Our memories are not perfect "Source anemia": Where did I hear that from? Did I actually see it?
What is wages in the labor markets?
Pay Survey
What is the Worker Economic Opportunity Act 2000
Permits Employers to Exclude from Regular Rate of Pay Value and Income from Employee Stock Options
What is service markets and changes?
Personal Expense Budget
Long term - short term
Power distance: The comfort in difference status (US people okay to go talk to bosses)
Uncertainty avoidance
Preference of structures - are things known or unknown
What is the American with Disabilities Act 1990
Prohibits discrimination of people who are qualified but disabled.
What is the Age Discrimination in Employment Act (ADEA) 1967
Prohibits discrimination on being 40 or older
What is the Executive Order 11246
Prohibits job discrimination of federal contractors and subcontractors on the basis of race, color, religion, national origin, and sex
What is the Title VII of the Civil Rights Act of 1964 and as amended in 1991
Prohibits job discrimination of race, color, religion, national origin, and sex
What is the Walsh-Healey Public Contracts Act 1936
Protects manufactures on prevailing wages
What is the Davis-Bacon Act 1931
Protects mechanics and laborers on public construction projects on prevailing wages
What is the National Foundation for the Arts and Humanities Act 1965
Protects recipients of grants (a group of talented individuals or a state agency) on prevailing wages
What is the Service Contract Act (SCA) 1965
Protects service employees on prevailing wages
Why might a compa-ratio be less than 1?
Rates paid are less than midpoint
Why might a compa-ratio be greater than 1?
Rates paid are more than midpoint
What is a Desk Audit
Review documentation, look for section on compensation and look for red flags
Increase Government Regulation
Rules could be put in but it depends on the party in office, recently they rolled back the regulations
Localization
Salary tied to host country there is still "allowance"
What is the Fair Labor Standards Act (FLSA) 1938
Set federal minimum wage and protects youth with laws and regulations
What is a prevailing wage law?
Set pay for work that is being contracted by the government
Trade union membership varies across the globe
Some pay systems with regards to stock won't make sense in some counties but would work in others EX) -US: far less concentrated than many other countries -Korea: 6 conglomerates which are linked with specific families -Germany
What are Social contract
Something that is understood, not in writing it can be understood between employer and employee or owner-government-employees depending on culture. *It evolves over time
Reopener Clause
Specifice a time within contract period that you can come back and negotiate some aspect of pay. Wage and non wage items that will be renegotiated in the future.
What happened in AFSCME v. State of Washington (1985)?
State commissioned study, which concluded basing pay off external markets women were being paid 20% less, State then did nothing. AFSCME then sued state because of this. Lower court found in favor of AFSCME but Appeals court did not.
How do you manage labor costs through Controlling benefits?
Suspending matching contributions to 401(k)s or move from pension to 401(k) programs
What can you do about Overweighting negative information
Taking notes and observation, helps to look back on negatives and positives
Which of the following includes a provision that 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?
The Dodd-Frank Wall Street Reform and Consumer Protection Act
Bob works in a sterile laboratory that requires him to scrub and put on protective clothing. Which of the following acts determines whether he should be paid for this time?
The Portal-to-Portal Act
How does one distinguish between an independent contractor and an employee?
The amount of control and how long they are working for If contractor has more control then they are an independent contractor
_____ sets salaries according to the home-country system and simply offers employees lump sums of money to offset differences in standards of living
The cafeteria approach
__________is a measure of changes in prices of goods and services in the product and service markets over time
The consumer price index
What is managerial autonomy?
The extent to which managers have discretion to use total compensation as a tool.
What is the balance sheet approach?
The home country is standard for all payments
When compared to the impact of unions during periods of strong economies, the impact of unions during periods of higher unemployment is _____
larger
An Indian citizen working for a Japanese company in India is a _____
local country national
What is a (LCN)?
local country national
How do the policies and practices of unionized firms vary from nonunionized firms with respect to the vacations and holidays?
Unions will have much more specific language for vacations and holidays in contracts, less specific language for nonunion
How do you manage labor costs through Hours?
Up the hours of existing employees or Furlows(mandatory time off)
ABC Inc. wants to set up a unit in China. To facilitate this, it sends its manager to China to gather information. Which of the following is most likely to be a suggestion from its manager?
Use a hierarchical pay structure as there is high power distance in China
What is Economic Approach?
Value of CEO should correspond to some measure of organizational success
Does union pay difference vary?
Varys year to year. High unemployment union impact is larger, Stronger economies nonunion and union gap is smaller.
What was the intention behind the overtime provision of the FLSA?
Was intended to make hiring more workers look more appealing than making people work over time
Show-Clause Statement
Well see evidence of this wrong and tell them how to fix it
What is a red circle rate?
When pay goes above the maximum pay level Can happen with promotions or profit sharing, and with employees with high seniority
What is a green circle rate?
When pay goes below the minimum pay level
What is Benefits
Will be different from regular employee benefits
How does Wisconsin law differ from Federal law with respect to protected groups?
Wisconsin has more protected classes than federal law recognize. EX) Sexual orientation, arrest and conviction records
Are there differences in labor costs across countries?
Yes
Do unions make a difference in pay?
Yes, on average union workers make more than nonunion workers.
Notification of compliance/closure letter
Everything is good, review is done
_____ prohibits discrimination on the basis of race, color, religion, sex, or national origin
Executive Order 11246
The balance sheet approach is based on what premise?
Based on the premise that employees should retain same buying power
Research indicates that the presence of a union adds about _____ to employee benefits
30 to 40 percent
The average company match for a 401(k) retirement plan is ____ cents on the dollar up to 6 percent of pay
50
How do you calculate churn or slippage?
= Annual Turnover * Planned Average Increase
__________involves periodic adjustments based typically on changes in the consumer price index
A COLA clause
What is a third country national (TCN)?
A citizen of neither the parent country or of where they are working in
What is a parent country national (PCN)?
A citizen of the employer's home country working in a foreign country
What are Cultures
A shared metal programming EX) values, beliefs, and norms
Decrease Allowances
Allowances given will decrease the longer you are there, to start to look more like a "local" (run into problems when taking away)
What is Short-term (annual) incentives or bonuses
Annual bonus are major motivators in short-term performance. The amount allotted for bonuses in executives compensation has begun to decrease
Gain-Sharing plan
As long as union is involved in creating, and its group and objective based.
How do you manage labor costs through Controlling average cash compensation?
Average salary and bonuses, profit sharing are froze or variable pay is introduced
Using more LCNs
Avoids hiring expats
What can you do about Race, sex, appearance bias
Base evaluation on observations and be aware of own bias
What is changes in the prices in the products?
Consumer Price Index
What is compensatory time off?
Could take time off instead of getting paid over time (for nonexempt employees only)
What happened in Gunther v. County of Washington (1981)?
Courts said you could bring a case under the Civil rights act that did not meet the equal definition that the equal pay act says.
What influences how much the increase is in bottom-up budgeting?
Data, and training
What is a two-tier pay plan?
Differentiate pay based upon hire date EX) employees who have been with the company will keep a pension plan and for new ones will get a 401K plan.
What is the Lilly Ledbetter Fair Pay Act 2009
Discrimination "clock" starts again every time discriminatory paycheck is issued
What time counts when determining the hours that were worked under the FLSA?
Do breaks count? Time "on-call" but can be leave and go to kids soccer game does not count but if "on-call" means having to stay in the building then is does count
EEOC does..
Does investigations but not many reviews
What was the downside of Gunther v. County of Washington?
Downside: did not say what might be evidence of pay discrimination for dissimilar jobs (opened a can of worms)
What is the difference between minimum wage and a living wage?
EX) Oshkosh MW: $7.25 and LW: $10.98 Minimum Wage: wage in the United States is set by US labor law and a range of state and local laws Living Wage: a wage that is high enough to maintain a normal standard of living.
Negotiations
Employee negotiates with their employer (time consuming and fairness issues)
_______, a software package, allows workers to make health-care choices, allocate savings to 401 (k)s or other savings vehicles, and access vacation schedules
Employee self-service
What is an expatriate?
Employee who is temporarily working and living in a foreign country
How is Executive Order 11246 enforced?
Enforced by the Office of Federal Contract Compliance Programs (OFCCP) they do a lot of review but not many investigations
How is a determination made under the Equal Pay Act about whether work is equal?
Equal in terms of: -Skill -Responsibility -Effort
What is Social comparisons?
Executive salaries bear a consistent relative relationship to subordinates pay (150 times in 1980 and 300 time in 2015)
Why would unions endorse such a plan?
Favored because it is less painful for union members who have a pension coming, and taking it away would cause lots of hurt and problems, so keep it for old employees and changing for new employees will cause less hurt for both parties involved.
When the federal minimum wage is different than a state or local minimum wage, what wage wins out?
Federal
Lump-sum awards
For groups
What is Base salary?
Formalized job evaluations play a role but also opinion of compensation committee They identify major competitors and set salary between best and worst
Employee Involvement
Get employees involved
Employee stock ownership plans
Give sense of ownership, and employees might be more involved in decisions
What is a tally sheet?
Gives comprehensive true value of a CEO's compensation package, tally up the value of base pay, benefits, long-term incentives, and perks. (things get hard with estimating stock options) This gives a single figure to use.
Performance standard training/Frame-of-reference training
Graphic rating scale: Training people on what a "4" means and entails
What is Long-term incentives and capital appreciation plans
Has been trend to increase long-term incentives but more recently companies have been walking away from them
What is disparate impact?
Having a neutral policy in place, but in effect it has a negative impact in particular group(s)
Why would management endorse such a plan?
Helps to control costs and help a company to survive, it moves them in a better direction
Individualism - collectivism
I: focus is on individuals C: Focus on groups
What is a On-site Review
If red flags are found, then they got to HQ, goes on tours of different units
What is the Pregnancy Discrimination Act 1978
Illegal to discriminate on the basis of pregnancy and childbirth related issues
What goes into determining whether a job is exempt or nonexempt?
Important: This is more complex than most think, and if there was ever a legal case there would be scrutiny given to WHAT the person does. *Wisconsin Law looks at not only WHAT is doe but HOW much time is taken up by doing certain activities (Primary duties and Assisting executive position employees)
Why do unions tend to favor gain-sharing plans?
Increased involvement with job activities
What is disparate treatment?
Intention to discriminate
Which of the following actions is most likely to be favored by unions?
Introducing lump-sum awards
Why do most unions prefer group-based performance measures with equal payouts to members?
It cuts down on strife and internal quarrels
ABC Corp. recognizes that its competitor XYZ Corp., which is unionized, offers higher wages and benefits. To avoid unionization demands from its workers, ABC decides to offer the same wages and benefits to its employees as XYZ. Which of the following phenomena is exemplified in this case?
The spillover effect
How do the policies and practices of unionized firms vary from nonunionized firms with respect to the occupation wage differentials, and experience/merit differentials?
There should be differences in pay if there is differences in the occupation. Unions prefer to see same pay for occupations and if there is a difference they want it to be seen based off seniority because its objective. Nonunions can have differentials based off of merit or experience.
What are some affirmative defenses?
They are the reasons for the differences in pay EX) Seniority, merit, quality or quantity, training
What are compa-ratio?
They look at range midpoint and looks at how employers are paying compared to that midpoint
What do critics/press typically say about executive compensation?
They usually bring up the gap between the wages of CEO's to their employees (how the gap is smaller in Europe than in the US) and non-profits not having the same kind of wage gap
Cost of living adjustment or Escalator clause
This allows for periodic adjustments based on the consumer price index, these are automatic.
Overweighting negative information
This is human tendency!! Clouds judgement on good things that happen because youre so upset about the negative that happened
How common is balance sheet appraoch?
This is the most popular
Modified Balance Sheet
Ties salary to home country but not specific location just the region home country is in (cuts down on the expenses)
What is a Off-site Review
Time to digest documentation found
What is top-down budgeting?
Top management determines budget and then it is filtered down the chain
What are Trade unions
Trade union membership varies across the globe
Performance-dimension training
Train on what performance dimension actually are
Rater-error training
Training raters on errors that can happen and what helps
What is the spillover effect or how do unions impact nonunionized firms?
Unions affect non-union companies through "similar pay." Workers could threaten to leave non-unionized for better pay or to unionize their company
How does the division between direct wages and employee benefits vary from unionized to nonunionized firms?
Unions favor benefits over direct wages, usually add 10-30% to benefits
How do the policies and practices of unionized firms vary from nonunionized firms with respect to the basis of pay?
Unions prefer base pay and benefits and pay for nonstandard shifts, where contracts are explicitly spelled out in the contract. Non unionized firms prefer base pay, overtime pay, pay for nonstandard shifts, and specifically incentive pay.
The percentage increase that is planned for an organizational unit or company is called _____
a planned pay-level rise
Denial of jobs, promotions, or training opportunities to qualified women or minorities are examples of _____
access discrimination
What is a prevailing wage?
as the hourly wage, usual benefits and overtime, paid
Movement through the wage range based seniority is _____
automatic progression
A management strategy of giving separate organization units the responsibility to design and administer their own compensation systems is _____
decentralized responsibility
What is the Older Workers Benefit Protection Act (OWBPA)
has specific rules on focused early retirement
The degree of discretion managers have to make total compensation a strategic tool is referred to as _____
managerial autonomy
Bonuses paid in Japan are _____
not necessarily related to performance
All of the following are major factors used to manage total labor costs EXCEPT _____
number of overtime hours
What is a (PCN)?
parent country national
Which of the following would a union be most likely to favor?
profit sharing
Pay rates that exceed the maximum of a pay range for a particular pay grade are...
red circle
The compa-ratio reflects the _______
relationship of the average actual salary in each range to the midpoint of the range
The Davis-Bacon Act _____
requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area
Factors of the worth of CEO is measured by:
success, size, and profitability
When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country, it is known as _____
tax equalization
Uncertainty avoidance is _____
the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
What is a (TCN)?
third country national
Sometimes referred to as "churn" or "slippage," the _____ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage
turnover effect
In a(n) _____ pay plan, a contract is negotiated which specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs
two-tier
The ADEA _____
was amended in 1990 to include the Older Workers Benefit Protection Act
