Compensation Types

Compensation Types - Types of Compensation In The...

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Types of Compensation In The Hospitality Industry Anthony Sobers-Assue Florida International University
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03/11/2010 23:35:00 Table Of Contents 1 – Introduction and Minimum Wage 6 – Work Breaks and other Benefits 10 - Salaries 12 – Gratuities
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15 Compensation Types Compensation Types within the Hospitality Industry Compensation Types 3
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15 Compensation Types Fair compensation begins and ends with the minimum wage. “How much is the floor price for a job?” one might ask. Minimum wage is the lowest amount of money an employer can pay any given worker and also the lowest legal amount a worker can sell their labor for. Minimum wages were first proposed as a way to control the rapid growth of sweatshops in factories. The sweatshops employed thousands of women and young workers, paying them what were then considered to be sub-standard wages. The sweatshop owners were thought to have unfair bargaining power over their workers, and a minimum wage was proposed as a means to make them pay what could be perceived as "fairly." Over time, the focus changed to helping people, especially families, become more self-sufficient. Today, minimum wage laws cover workers in most lower-paid fields of employment. In 2010, the Floridian minimum wage has been set to $7.25, which is coincidentally the same as the national minimum for the United States. According to the Department of Labor (2010) “The federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. The federal minimum wage provisions are contained in the   Fair Labor Standards Act. Many states   also have minimum wage laws. In cases where an employee is subject to Compensation Types 4
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15 Compensation Types both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages”. This solution is effective on the worker’s behalf as far as remuneration policies. On the opposite end of the spectrum, there exists certain salary caps in some states but in the hospitality industry there are little to no restrictions due to revenue fluctuations, employee turnover and any number of variables and internal/external factors. In a fair world, the remuneration would be proportional to the amount of work done and everyone would get compensated for the amount of effort, time or another measurable factor done. The only problem with that is the view would be too subjective for operations to proceed smoothly; therefore the minimum wage per hour to cover labor for the business and living costs for the workers is a fair alternative. Some housekeeping positions have additional costs to to dry-clean uniforms even at a cost to the employee. Cleanliness is a part of the corporate culture as in in more prestigious hotels as well as efficient
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Compensation Types - Types of Compensation In The...

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