Relative pay differentials control for the influence of other variables, for example, Unionization of the workforce Interindustry wage differentials Labor Union Influence on Pay o In general, workers represented by unions earn more, on average, than non-union workers: $970/week vs $763/week in 2014 o The collective efforts of labor, organized through labor unions, have led to higher pay than in settings where pay rate negotiation is conducted between individual employees and the employer o The spillover effect suggests that non union employers tend to pay higher than they might otherwise pay in order to avoid unionization Decline in Union Representation o Causes for decline Legislation prohibits unions from intimidating workers to become members Right-to-work laws prohibit requiring workers to join unions as a condition of employment Relocation of manufacturing operations from the United States to other countries with fewer labor laws 4 Constitutional Amendments o Basis for laws: Article 1, Section 8 Scope of Congressional powers First Amendment Limits to Congressional power Fifth Amendment Individual Rights Fourteenth Amendment, Section 1 State governments’ limitations 4 Compensation Law Themes
o Income continuity, safety, and work hours o Pay discrimination o Accommodating disabilities and family needs o Prevailing wage laws Laws Pertinent to Compensation Practice o Additional laws focused on employee benefits: o Discretionary Benefits (Chapter 9) Internal Revenue Code Employee Retirement Income Security Act Pension Protection Act o Legally-Required Benefits (Chapter 10) Social Security Act Workers’ compensation Family and Medical Leave Act Patient Protection and Affordable Care Act Consolidated Omnibus Budget Reconciliation Act Health Insurance Portability and Accountability Act Government Units o Federal oversees the entire United States and its territories o State enacts and enforces laws that pertain exclusively to their respective regions o Local enacts and enforces laws that are most pertinent to smaller geographic regions FLSA of 1938 o Federal minimum wage ($7.25/hr as of 2009) o Overtime pay (typically 1.5 times normal hourly rate for each hour beyond 40 in a workweek) o Child labor provisions FLSA Exempt Positions o Executive o Administrative o Learned professional o Creative professional o Computer positions o Outside sales Most other jobs are nonexempt . Nonexempt jobs are subject to the FLSA overtime pay provision Compensable Work Activities Waiting time On-call time
Rest and meal periods Sleeping time and certain other activities Lectures, meetings, and training programs Travel time Home to work travel Home to work on special one day assignment Travel that is all in a day’s work Travel away from home community Child Labor o Ages 14 and younger can’t work o Ages 14 and 15 can work o
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- Spring '14
- Employment compensation, Base pay, pay differentials