Compensation Day 23 Flashcards Preview

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Flashcards in Compensation Day 23 Deck (41):
1

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

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

2

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

Fair Labor Standards Act (FLSA)

3

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

Minimum wage

4

Exempt vs nonexempt employees: exempt

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

5

Exempt vs nonexempt employees: nonexempt

Employees covered by the FLSA requirements for overtime pay

6

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

Overtime pay

7

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

1.5

8

Child labor laws children aged 16 and 17

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

9

Child labor laws children aged 14 and 15

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

10

Child labor laws children under age 14

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

11

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

Prevailing wage

12

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

30%

13

Two federal laws govern pay policies of federal contractors

Davis-bacon act of 1931
Walsh-Healy public contracts act of 1936

14

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

Davis-Bacon Act of 1931

15

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

Walsh-Healy Public Contracts Act of 1936

16

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

Benchmarking

17

Benchmarking (6 ways)

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

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

Equity theory

19

Organizations must take into account (8) on Pay Decisions

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

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

Pay structure

21

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

Market forces
Unique goals
Relative contribution of each job towards goals

22

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

Job structure

23

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

Job evaluation

24

Job evaluation is based on

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

25

Job analysis helps identify (3)

Job difficulty, demands, and required qualifications

26

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

Pay level

27

Pay level includes a number of different factors (3)

Hourly wage vs salary
Piecework rate
Bonuses

28

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

Pay grades

29

Drawback of pay grades

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

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

Pay ranges

31

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

Pay differential

32

This is the organization's formal policy on pay

Pay structure

33

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

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

34

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

Delayering

35

Delayering: more assignments are combined into a single layer called

Broad bands

36

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

Skill-based pay systems

37

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

Skill-based pay systems

38

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

Uniformed services employment and reemployment rights act (USERRA)

39

Equity theory: if employees see their pay as equitable,

Then their attitudes and behavior continue unchanged

40

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

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

41

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

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