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How do you set a compensation structure?

Establish value for each position in your company. Consider your company's competitive posture. Define compensate leverage for your company. Look at external inequalities. Develop a salary structure for your organization. Get your current employees up to par.

Can you get paid less than minimum wage?

Under federal law, if part of your compensation comes from tips, then your employer can pay you significantly less than the minimum wage, as long as your hourly wage plus the average amount that you earn from tips equals the minimum wage.

Can you be paid less than minimum wage during training?

Yes, you have to pay employees for training. The question is, how much. In some states, it may be less than minimum wage. Federal law sets certain minimum standards, but states and localities may enact provisions that are more generous to employees, and there is considerable variation among the states.

Can minors be paid less than minimum wage?

Under the FLEA, covered employers are allowed to pay employees under the age of 20 a youth minimum wage of no less than $4.25 an hour for the limited period of 90 days. If an employee turns 20 during the 90-day period, their pay must be raised to no less than the applicable minimum wage.

Can universities pay under minimum wage?

In many states including Massachusetts, Connecticut, New Jersey, Virginia, and New York students who work for universities are legally eligible to receive less than the state minimum wage when working on campus. They also have a cap on the number of hours they can work, usually no more than 20 in one week.

Can you pay employees a different rate for training?

An employer may set a different hourly pay rate for training, provided that the hourly rate for training is at least minimum wage. Your employer should be paying its employees for their time spent watching the training on DVD.

Can a stipend be less than minimum wage?

Also, a stipend may be lower than the minimum wage as long as it's used to pay trainees. Those earning stipends don't have taxes withdrawn to pay for Medicare and Social Security. However, the recipients need to set aside a portion of their earnings because stipends are considered taxable income.

Can disabled people be paid less than minimum wage?

Most Americans might not know that federal law allows certain employers to pay people with disabilities far less than the minimum wage, trapping them in poverty. Goodwill Industries, one of the largest employers of people with disabilities, has a track record of paying its employees with disabilities sub-minimum wage.

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