FedLawsCompBenefit - THE LEGAL ENVIRONMENT The legal...

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THE LEGAL ENVIRONMENT The legal environment of U.S. compensation and benefits administration is dictated by: federal and state legislation the regulations imposed by executive branches of these governing bodies case law (court decisions) for some developing legal concepts Private organizations tend to characterize the above as constraints, but they may also represent opportunities. It's difficult to portray this environment briefly, but in essence the "rules" state that: Compensation must not be too low or (at times) too high. Within these limits (not too low or high), compensation decisions should be left to the parties involved. Certain groups are protected in the interest of fairness. All must be paid when due. Unfortunately, federal and state legislative bodies haven't labeled the laws, regulations, and cases according to categories of compensation. Nor have they limited them to compensation matters. Course Overview Our main concern is with compensation and benefits, so we'll focus on the laws and regulations that have the most impact on benefits and compensation decision makers. First we'll look at laws affecting wages/salaries, including the: Fair Labor Standards Act Equal Pay Act Prevailing Wage Laws Equal Employment Opportunity and Affirmative Action Rules Collective Bargaining Laws Tax Laws Then we'll look at laws on required benefits, such as Social Security, unemployment insurance, and Workers' Compensation. Following this, we'll explain health and medical benefits laws, including the: Family Medical Leave Act (FMLA) 1
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Consolidated Omnibus Budget Reconciliation Act (COBRA) Health Insurance Portability and Accountability Act (HIPAA) Finally, we'll examine the Employee Retirement Income Security Act's impact on retirement plan administration. Let's begin. .. WAGE LEGISLATION We begin our discussion of compensation laws with a look at wage/salary legislation. Fair Labor Standards Act The Fair Labor Standards Act (FLSA) is often called the wage and hour law. It's the oldest U.S. labor law, originally passed in 1938. FLSA has four provisions that affect compensation programs. They concern the following: minimum wages overtime pay equal pay record-keeping requirements Minimum wage Minimum-wage provisions set a floor on the amount of pay an employee must receive. Effective July 24, 2007, the U.S. federal minimum wage per hour is $5.85. The minimum wage is a contentious concept with advocates and opponents. Here's what they say… Advocates Opponents Some minimum wage is required in society because of the imbalance of power between the employer and employee. This is particularly true in The minimum wage: creates unemployment in the 2
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the lower levels of the economy. By having a minimum wage, the country is reducing the dependence of some people on the "safety net" of society, and is thus lowering the cost of government. lowest level of workers
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FedLawsCompBenefit - THE LEGAL ENVIRONMENT The legal...

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