MGMT 494 Ch.17 Study Guide - Chapter 17 Government as a stakeholder employer and purchaser Legislation establishes a minimum wage governs overtime pay

MGMT 494 Ch.17 Study Guide - Chapter 17 Government as a...

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Chapter 17 Government as a stakeholder, employer and purchaser Legislation establishes a minimum wage, governs overtime pay, protects employees from discrimination regulates benefits, and determines how compensation is taxed. Governments’ usual interests are whether o Procedures for determining pay are fair (pay discrimination) o Safety nets for the unemployed and disadvantaged are sufficient (minimum wage, unemployment insurance) o Employees are protected from exploitation (overtime pay, child labor) Government is also an employer and purchaser, and thus affects supply and demand for labor Demand o Government is a big employer o Indirectly affects labor demand through its purchases and financial policy decisions Supply o Affects labor supply through legislation o Immigration policy and how rigorously it is enforced is an important factor in labor supply Fair Labor Standards Act—minimum wage, hours, child labor, exempt/nonexempt Three major provisions o Minimum wage Legislation is intended to provide an income floor for workers in society’s least productive jobs Federal minimum wage is $7.25 an hour as of July 24, 2009 Almost all states have their own minimum wage to cover jobs omitted from federal legislation “Living wage” o Issued at the local level, based on local living costs o At local levels it provides a minimum wage tailored to living costs in an area o Because they are so narrowly tailored, it is speculated that their real intention is to reduce any cost savings a municipality might receive from outsourcing If state and federal legislation cover the some job, the higher rate prevails Prevailing Wage Laws The minimum wage that must be paid for work done on covered government projects or purchases o E.g., Davis-Bacon Act, Walsh-Healey Public Contracts Act, Service Contract Act o Prevent contractors from using their size to driven down wages o Overtime & Hours of work Overtime pay
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  • Management, Employment compensation, FLSA

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