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Related Flashcards
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Cards In This Set
| Front | Back |
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What are the two components of employee compensation
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Direct financial payments
indirect financial payments |
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Examples of direct financial payments
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Wages, salaries, incentives, commissions, and bonuses
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Examples of indirect financial payments
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Financial benefits like employer-paid insurance and vacations
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What is the key to employee compensation?
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Being flexible and creating overall compensation plans for YOUR firm
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What are the two ways firms usually pay employees (directly)
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Time
performance |
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Time consists of... (2)
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Hours spent working
usually in the form of weekly, monthly pay |
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Performance consists of... (3)
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What have you accomplished?
pay based on output of worker (ie factory work) sales commission, etc. |
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What four factors determine pay?
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1) legal considerations
2) union environment (if present) 3) compensation policies and practices 4) equity |
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Which act is associated with legal considerations?
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Fair labor standards act (1938)
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What does the FLSA consist of? (6)
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Sets minimum wage
overtime pay (1.5 normal pay over 40 hrs/week) equal pay based on gender civil rights laws record keeping child labor laws |
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Legal considerations consist of... (2)
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Non-exempt
exempt |
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Non-exempt
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Mostly hour workers (ie clerical workers, blue collar, paralegals, accountant clerks)
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Exempt
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Depends on what the employee DOES, not the title (growing number of lawsuits about this)
executives, administrators, professionals are generally EXEMPT (meaning exempt from the overtime rules of the FLSA) |
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Union environment applies to...
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Union and labor relations
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What is the act related to union environment?
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National labor relations act of 1935
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