Fair Compensation

Fair Compensation - 15:47 Compensation Types within the...

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15:47 Compensation Types within the Hospitality Industry Fair Compensation 3 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 Fair Compensation 4
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15:47 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 service and hard working employees who always have a smile on their face. But what happens when work gets exhaustive? When exhaustion slowly manifests itself via an unmotivated work Fair Compensation 5 culture, late employees and reduced productivity that will trickle down into a profit loss it is best to circumvent trouble and delve into the world of employee breaks and vacations.
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15:47             Fair Compensation 6
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15:47 Employee breaks are necessary to a good working environment. Human technology has
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This note was uploaded on 03/08/2011 for the course ECO 3201 taught by Professor Smith during the Spring '11 term at FIU.

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Fair Compensation - 15:47 Compensation Types within the...

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