Title: Reading: (CU2 M3) Employee Compensation
Course: SkillsCom BA 224 15.1 > Section: Credit Unit 2 Module 3

This article discusses at length the full process of setting up and establishing a compensation system. A variety of compensation and benefit elements are covered – everything from forms of compensation and health insurance to government requirements. Be sure to read all of the sections of this article.

How Employee Compensation Works (Webpage)

Additional Information to Review:

- The ADA, Family and Medical Leave Act, and the Age Discrimination in Employment Act all impact compensation decisions made by organizations. The Labor Management Relations Act prohibited unfair union labor practices and enumerated the rights of employees as union members and has no impact on compensation issues.
- The Equal Pay Act, an amendment to the Fair Labor Standards Act (FLSA) states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.
- The FLSA says employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek.
- The Fair Labor Standards Act, originally passed in 1938 and since amended many times, contains minimum wage, maximum hours, overtime pay, equal pay, record-keeping, and child labor provisions that are familiar to most working people. It covers the majority of U.S. workers—virtually all those engaged in the production and/or sale of goods for interstate and foreign commerce.
- The 1931 Davis-Bacon Act allows the secretary of labor to set wage rates for laborers and mechanics employed by contractors working for the federal government. Amendments provide for paid employee benefits.