Belhaven University Equal Reimbursement Laws Paper Prompt: The Lilly Ledbetter Act was the first law signed by President Obama after he became President. R

Belhaven University Equal Reimbursement Laws Paper Prompt: The Lilly Ledbetter Act was the first law signed by President Obama after he became President. Research the law and discuss its history and what impact the law has on employees and employers currently and in the future.
Requirements: 500 words minimum Human Resource Management
MSL660/MPA606
Hall #6
It’s Time to Get Paid!
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Format for Hall session
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Introduction of the Hall
Hall Topics
Christian worldview applications
Major points for the week’s learning
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Topics we’ll cover
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Total Rewards & Compensation
Compensation Design System Issues
Legal Constraints on Pay Systems
Development of a Base Pay System
Pay Structures
Determining Pay Increases
Variable Pay: Incentives for Performance
Individual Incentives
Group/Team Incentives
Organizational Incentives
Sales Compensation
Executive Compensation
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Biblical Foundation: Deut. 24:14-15
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Hall Objectives
• How organizations use total rewards to help
accomplish organizational strategy
• How the FLSA affects how organizations run
their organizations
• How organizations determine how they will pay
their employees
• How incentives enhance performance
• What are the different kinds of incentives
• What is sales compensation and executive
compensation
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Questions or Topics for Reflection &
Study
• What is the difference between wages & salaries?
• What are the three (3) major provisions of the
Fair Labor Standards Act (FLSA)?
• What are the types of incentives organizations
pay?
• What is the difference between commission & a
draw?
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Total Rewards
• Total Rewards – Monetary & nonmonetary
rewards provided by companies to attract, motivate,
& retain employees.
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Legal compliance with all appropriate laws & regulations
Cost-effectiveness for the organization
Internal, external, & individual equity for employees
Performance enhancement for the organization
Performance recognition & talent management for
employees
▫ Enhanced recruitment, involvement, & retention of
employees
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Total Rewards Components
• Fig. 11-1
Source: Mathis & Jackson (2011), Human Resource Management (13th ed.),
Mason, OH, Cengage Southwestern.
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Compensation
• Types:
▫ Base pay
 Wages
 Salaries
▫ Variable pay
▫ Benefits
• Philosophies:
▫ Entitlement
▫ Performance
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HR Metrics for Compensation
• Fig. 11-3
Source: Mathis & Jackson (2011), Human Resource Management (13th ed.),
Mason, OH, Cengage Southwestern.
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Compensation System Design Issues
• Fairness & equity
• Strategy:
▫ “Meet the market”
▫ “Lag the market”
▫ “Lead the market”
• Competency-based pay
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Legal Constraints on Pay Systems
• Fair Labor Standards Act (FLSA) – major
federal law affecting compensation & is enforced
by the Wage & Hour Division of the U.S. Dept of
Labor
▫ Major Provisions:
 Establish a minimum wage
 Discourage oppressive use of child labor
 Encourage limits on the number of hours
employees work per week through OT
provisions
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Legal Constraints on Pay Systems
• Minimum wage – can only be changed by
Congress, raised to $7.25/hr on 7/24/2009
• Child Labor Provisions:
▫ Minimum age to work unlimited hours – 16
▫ Hazardous occupations – 18
▫ Certain limitations – 14 & 15
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Legal Constraints on Pay Systems
• Exempt & Nonexempt Statuses:
▫ Exempt employees – don’t have to pay OT
▫ Nonexempt employees – must pay OT
• Exempt Categories:
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Executive
Administrative
Professional
Computer employees
Outside sales
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Legal Constraints on Pay Systems
• Overtime:
▫ 1 ½ x pay for hours worked over 8/day or
40/week
▫ If desired, nursing homes & hospitals are allowed
to use a 14-day period instead of 7-day week as
long as employees are paid OT for hours worked
over 8/day or 80/14-day period
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Legal Constraints on Pay Systems
• Equal Pay & Pay Equity:
▫ Pay differences can be justified on basis for merit,
seniority, experience, etc.
▫ Pay equity – pay for all jobs requiring comparable
KSAs should be the same even if actual job duties
& market rates differ significantly
• State & Local Laws
• Garnishment Laws
• Lilly Ledbetter Fair Pay Act – negated any statute
of limitations filing a complaint of pay
discrimination
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Development
of a Pay
System
• Fig. 11-8
Source: Mathis & Jackson (2011), Human
Resource Management (13th ed.),
Mason, OH, Cengage Southwestern.
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Development of a Pay System
• Job evaluation – Formal, systematic means to identify
the relative worth of jobs within an organization.
• Market pricing – Use of market pay data to identify the
relative value of jobs based on what other employers pay
for similar jobs.
• Pay survey – Collection of data on compensation rates
for workers performing similar jobs in other
organizations.
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Pay Structures
• Fig. 11-10
Source: Mathis & Jackson (2011), Human Resource Management (13th ed.),
Mason, OH, Cengage Southwestern.
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Pay Structures
• Pay grades – Groupings of individual jobs having
approximately the same job worth.
• Market banding – Grouping jobs into pay grades
based on similar market survey amounts.
• Broadbanding – Practice of using fewer pay grades
with much broader ranges than in traditional
compensation systems.
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Standardized Pay Adjustments
• Seniority – Time spent in an organization or on a
particular job.
• Cost-of-Living Adjustment (COLA)
• Across-the-Board Increase
• Lump-sum Increase – One-time payment of all or
part of a yearly pay increase.
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Variable Pay: Incentives for
Performance
• Variable pay – Compensation linked to individual,
group/team, and/or organizational performance.
• Fig. 12-3
Source: Mathis & Jackson (2011), Human Resource Management (13th ed.),
Mason, OH, Cengage Southwestern.
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Individual Incentives
• Straight piece-rate system – Pay system in which
wages are determined by multiplying the number of
units produced by the piece rate for one unit.
• Differential piece-rate system
• Bonus – One-time payment that does not become part
of the employee’s base pay.
• Special Incentive Programs:
▫ Performance awards
▫ Recognition awards
▫ Service awards
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Group/Team Incentives
• Group/team results
• Gainsharing – System of sharing with
employees greater-than-expected gains in profits
and/or productivity.
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Organizational Incentives
• Profit sharing – System to distribute a portion
of the profits of an organization to employees.
• Stock option plan – Plan that gives employees
the right to purchase a fixed number of shares of
company stock at a specified price for a limited
period of time.
• Employee stock ownership plan (ESOP) –
Plan designed to give employees significant
stock ownership in their employees.

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Sales Compensation
• Salary only
• Straight commission
▫ Commission
▫ Draw
• Salary-plus-commission or bonus
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Executive Compensation
• Executive salaries
• Executive benefits
• Perks
• Annual executive incentives & bonuses
• Long-term executive performance incentives
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Questions or Topics for Review
• What is the difference between wages & salaries?
• What are the three (3) major provisions of the
Fair Labor Standards Act (FLSA)?
• What are the types of incentives organizations
pay?
• What is the difference between commission & a
draw?
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What next?
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Take the Hall Quiz
Complete your detailed reading
Answer the discussion questions
Complete the writing assignments
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References
• Mathis, Robert & Jackson, John. (2011) Human
Resource Management (13th ed.) Mason, OH:
Cengage Southwestern.
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This concludes Hall 6

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