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How do government regulations affect compensation?
The government enacts various laws and judicial decisions. Such laws and regulations affect compensation management mainly because they emphasize on minimum wage rate, overtime rate, working hours, equal pay for equal work, payment of bonus among others.
How do governmental influences affect compensation administration?
One example that the government influence on compensation administration is Fair Labor Act which requires minimum wage, and overtime pay[USD14]. The government requires employers to deduct funds from employees' wages for federal income taxes, social security and state and local income taxes.
How has government legislation affect compensation?
Government regulations has affected compensation by establishing the labor market and the law that determines how an employee should be paid and compensated. These laws are internal to the organization like the organizational culture and policies. Example o such laws are the Fair Labor Standard Act.
What is compensation and benefits administration?
Compensation administration is a segment of management or human resource management focusing on planning, organizing, and controlling the direct and indirect payments employees receive for the work they perform.
Why do we need to study compensation administration?
Compensation administration is one of the most important areas of human resource management because sound compensation policies, programs and their effective execution are essential to procure, maintain and develop the human resource of the organization to get effective result from them.
What is the major federal law affecting compensation?
The oldest US labor law is the US Fair Labor Standards Act (FLEA), often called the wage and hour law. It has four provisions that affect compensation programs. It has four provisions that affect compensation programs. These provisions concern minimum wages, overtime pay, record keeping requirements, and equal pay.
What is the most important employment law?
Among the most important legislation for HR professionals to know, Equal Employment Opportunity (EEO) laws protect against the discrimination of any individual based on age, disability, genetic information, national origin, race/color, sex, pregnancy, or religion.
What federal laws govern employment of labor and what do they cover?
Significant Federal Employment and Labor Laws The Fair Labor Standards Act determines the federal minimum wage and overtime pay of one-and-one-half-times the regular rate of pay. It also regulates child labor, limiting the number of hours that minors can work.
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