management 4030- managing employee reward systems fair labor standards act minimum wage provision...

Download Management 4030- Managing Employee Reward Systems Fair Labor Standards Act Minimum Wage Provision –$5.15 / hr. –Advantages - wage floor, min. standard

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  • Fair Labor Standards ActMinimum Wage Provision$5.15 / hr.Advantages - wage floor, min. standard of living Disadvantages - limits opportunity for unskilled, and the youth; may encourage substitutes for labor.Tipped employees - $2.13 / hr.Overtime Provision1.5 X Base Wage Rate for > 40 hours/ weekOnly non exempt ees (hourly) coveredEmployer Required to file non-exempt ees records of work hours with Dept. of Labor

    Management 4030- Managing Employee Reward Systems

  • FLSA (Contd) Enforcement of FLSAAuditsInvestigationsRemedies include back wages, attorney fees and court orders to stop violating FLSAFines and imprisonment for willful violatorsExemptionsExecutives/ ManagersAdministrative EmployeesProfessionalsOutside Sales ForceChallenge: Correct Classifications of Jobs

    Management 4030- Managing Employee Reward Systems

  • Problems Managing Under the FLSACorrect Classifications of Exemption JobsExs. Team leader? Telemarketers?Bonus Calculations - Non-discretionary bonus is part of overtime pay calculation.Ex. Shift premiums, Xmas bonus, special duty pay.Independent Contractor or Employee?Set own hours, own tools, own office & work siteTracking hours of non-exempts - Time clocks?Inflexible work hours - bias to 40 hr. work week.50/30 schedule --> 10 hrs. OTComp Time - time off instead of pay for OT?

    Management 4030- Managing Employee Reward Systems

  • Managing FLSA in the work place of the 1990s: Critical thinking Questions Overtime Provision:How do you manage the overtime of people who telecommute from a home office?There is a negative incentive to provide variable pay for non-exempt employees because the bonus calculation becomes very complicated for overtime. Is there a way to avoid this problem?

    Management 4030- Managing Employee Reward Systems

  • Equal Pay Act (1963)Definition: Equal Pay for Jobs of Substantially Equal Work Federal law to insure that women are paid equal to men if they are doing similar work. Factors that Define Equal WorkSkillEffortResponsibilityWorking Conditions

    Management 4030- Managing Employee Reward Systems

  • Equal Pay Act (Continued)There are 4 Legal Exceptions to the EPA: Men and Womens Pay on a similar job can be Different Due to Differences in...1. Seniority2. Performance or Merit ( A valid Supervisor-based evaluation of performance)3. Quantity or Quality of Output (such as a piecework or sales commission plan)4. Factor other than Gender such as Night shift differential or hazardous duty differential.

    Management 4030- Managing Employee Reward Systems