Compensation Day 23

Question 1

Government regulation affects pay structure in the areas of (5)

Answer 1

Equal employment opportunity
Minimum wage 
Pay for overtime
Child labor
Prevailing wages for federal contractors

Question 2

Federal law that establishes a minimum wage and requirements for overtime pay and child labor

Answer 2

Fair Labor Standards Act (FLSA)

Question 3

The lowest amount that employers may up under the federal or state law, stated as an amount of pay per hour

Answer 3

Minimum wage

Question 4

Exempt vs nonexempt employees: exempt

Answer 4

Managers, outside salespeople, and other employees not covered by the FLSA requirement for overtime pay
Depends on job responsibility, salary level above $455 per week, and salary basis
Includes executives, administrators, and professional occupations

Question 5

Exempt vs nonexempt employees: nonexempt

Answer 5

Employees covered by the FLSA requirements for overtime pay

Question 6

This is required whether or not the employer specifically asked or expected the employee to work more than 40 hours

Answer 6

Overtime pay

Question 7

Overtime rate is how many times the employees usual hourly rate?

Answer 7

1.5

Question 8

Child labor laws children aged 16 and 17

Answer 8

May not be employed in hazardous occupations defined by the US dept of labor
Mining, meatpacking, factories

Question 9

Child labor laws children aged 14 and 15

Answer 9

May work only outside school hours, in jobs defined as non hazardous, and for limited time periods

Question 10

Child labor laws children under age 14

Answer 10

May not be employed in any work associated with interstate commerce
Exemptions include baby sitting, acting, and delivering newspapers

Question 11

Under these laws, federal contractor must pay their employees at rates at least equal to the prevailing wages in the area

Answer 11

Prevailing wage

Question 12

Prevailing wages are based on what percent of the local labor force?

Answer 12

30%

Question 13

Two federal laws govern pay policies of federal contractors

Answer 13

Davis-bacon act of 1931

Walsh-Healy public contracts act of 1936

Question 14

This act covers construction contractors that receive more than $2000 in federal money

Answer 14

Davis-Bacon Act of 1931

Question 15

This act covers all government contractors receiving $10,000 or more in federal money

Answer 15

Walsh-Healy Public Contracts Act of 1936

Question 16

A procedure in which an organization compares its own practices against those of successful competitors

Answer 16

Benchmarking

Question 17

Benchmarking (6 ways)

Answer 17

Conduct pay surveys - internal vs external
Trade and industry groups
Professional groups
Bureau of Labor Statistics (BLS)
Society for Human Resource Management
American Management Association

Question 18

This theory states that employees care about their pay relative to what others are earning and that these feelings are based on what employees perceive

Answer 18

Equity theory

Question 19

Organizations must take into account (8) on Pay Decisions

Answer 19

Fairness
Pay structure
Job structure
Pay level
Pay grades
Pay ranges
Pay differentials
Alternative pay structures

Question 20

This reflects decisions about the relative value of each job (job structure) and how much to pay (pay level). It should reflect what the organization knows about market forces, unique goals, and relative contribution of each job towards goals

Answer 20

Pay structure

Question 21

The organizations pay structure should reflect what the organization knows about (3)

Answer 21

Market forces
Unique goals
Relative contribution of each job towards goals

Question 22

An internal structure showing the relative contribution of its various jobs; the relative value of each job

Answer 22

Job structure

Question 23

An administrative procedure for measuring the relative internal worth of the organization’s jobs

Answer 23

Job evaluation

Question 24

Job evaluation is based on

Answer 24

Compensable factors, or characteristics of the job that the organization values and will pay for

Question 25

Job analysis helps identify (3)

Answer 25

Job difficulty, demands, and required qualifications

Question 26

Average amount the organization pays for a particular job including wages, salaries, and bonuses

Answer 26

Pay level

Question 27

Pay level includes a number of different factors (3)

Answer 27

Hourly wage vs salary Piecework rate Bonuses

Question 28

Sets of jobs having similar worth or content, grouped together to establish rates of pay

Answer 28

Pay grades

Question 29

Drawback of pay grades

Answer 29

Not all jobs in each grade will have the same number of job evaluation points (level of importance)

Question 30

A set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade Widest in high level jobs, as they have more effect on organizational performance

Answer 30

Pay ranges

Question 31

Adjustment to pay rate to reflect differences in working conditions or labor markets

Answer 31

Pay differential

Question 32

This is the organization's formal policy on pay

Answer 32

Pay structure

Question 33

The ratio of average pay to the midpoint of the pay range

Answer 33

Compa-Ratio (CR) >1 = average is above midpoint <1 = average is below the midpoint

Question 34

Reducing the number of levels in the organization's job structure

Answer 34

Delayering

Question 35

Delayering: more assignments are combined into a single layer called

Answer 35

Broad bands

Question 36

Pay structures that set pay according to the employees' level of skill or knowledge and what they are capable of doing

Answer 36

Skill-based pay systems

Question 37

This is appropriate in organizations where changing technology requires employees to continually widen and deepen their knowledge

Answer 37

Skill-based pay systems

Question 38

Law that ensures employers make jobs available for active military when they return for up to 5 years

Answer 38

Uniformed services employment and reemployment rights act (USERRA)

Question 39

Equity theory: if employees see their pay as equitable,

Answer 39

Then their attitudes and behavior continue unchanged

Question 40

Equity theory: if employees see themselves as receiving an advantage,

Answer 40

Then they usually rethink the situation to see it as merely equitable

Question 41

Equity theory: if employees conclude that they are under-rewarded,

Answer 41

Then they are likely to make up the difference by stealing, reducing effort, or withdrawal