Comp And Benefits (Ch 6) - Part 2

Front 1

Fair labor standards act

Back 1

A major influence on basic compensation issues for businesses in the united states. Regulations apply to workers who are not already covered by another law. (1938)

Front 2

Fiduciary responsibility

Back 2

requires confidence or trust. A legal duty to act solely in another party's interests.

Front 3

Flexible spending accounts (FSAS)

Back 3

A special account you put money into that you use to pay for certain out-of-pocket health care costs. You don't pay taxes on this money.

Front 4

Focal review

Back 4

Period when all employees are reviewed at the same time

Front 5

Gain-sharing

Back 5

Involve employees and managers in improving the organization’s productivity and sharing the benefits of success

Front 6

Gatekeeper

Back 6

Most often the patient’s primary care physician (PCP), used to determine whether patients need to be seen by a specialist.

Front 7

Geographic pay

Back 7

Utilized by organizations to ensure that employees in different locations are paid at rates competitive in the labor market for specific jobs and locations.

Front 8

Graded vesting

Back 8

Also referred to as graduated or gradual vesting, establishes a vesting schedule that provides for partial vesting each year for a specified number of years. A graded vesting schedule in a qualified plan must allow for at least 20 percent vesting after three years and 20 percent per year after that, with participants achieving full vesting after seven years of service.

Front 9

Graduated or gradual vesting

Back 9

A delayed vesting schedule that provides for partial vesting each year for a specified number of years. A graded vesting schedule in a qualified plan must allow for at least 20 percent vesting after three years and 20 percent per year after that, with participants achieving full vesting after seven years of service.

Front 10

Grant price

Back 10

Also known as the strike price, is based on the market price at the rime the options are issued.

Front 11

Grantor trusts aka Rabbi Trusts

Back 11

Nonqualified deferred compensation plans established to provide retirement income for officers, directors, and highly compensated employees (HCEs). The funds are unsecured and therefore subject to claims made by the organization’s creditors. Benefits are taxable as ordinary income at the time they are paid to beneficiaries.

Front 12

Graveyard shift

Back 12

Shift work hours from 12 a.m. to 8 a.m.

Front 13

Green circle

Back 13

Pay that falls below the minimum of the salary range

Front 14

Gross pay

Back 14

Earnings before taxes

Front 15

Group incentives

Back 15

Also known as organizational incentives, group incentives are benefits or bonuses shared by all employees within the organization or within a department, commonly put in place to increase productivity and foster teamwork while sharing the financial rewards with employees. Types of group incentives include gain sharing. Improshare, the Scanlon Plan, profit sharing, and employee stock ownership plans (ESOPs).

Front 16

Hay system

Back 16

A classification method that utilizes a complex point factor system. Jobs are evaluated using three factors: knowledge, problem solving, and accountability. Using the points from the evaluation, the jobs are matched to a profile.

Front 17

Hazard pay

Back 17

Additional pay for dangerous and/or extremely uncomfortable working conditions.

Front 18

Health and wellness programs

Back 18

Developed to prevent employee illnesses and to lower health-care costs.

Front 19

Health purchasing alliances (HPA)

Back 19

This group of employers will negotiate and contract for the plans on behalf of all members of the group.

Front 20

Highly compensated employees (HCES)

Back 20

A plan participant who, during the current or prior year, earned $110,000 or more, owns 5 percent or more of the company and, at the company’s discretion, is one of the top paid 20 percent of employees

Front 21

Immediate vesting

Back 21

When employees are 100 percent, or fully, vested as soon as they meet the eligibility requirements of the plan.

Front 22

Improshare

Back 22

Developed in the 1970s by Mitchell Fein. A key part of the program is the establishment of a baseline for organization productivity and a baseline for productivity costs which used to calculate the group or organization’s performance.

Front 23

Imputed income

Back 23

Indirect compensation paid on behalf of employees. Ex: Life insurance in excess of $50,000

Front 24

In loco parentis

Back 24

This Latin term means 'in place of the parent” and applies to those who care for a child on a daily basis. In loco parentis does not necessarily refer to a biological or legal relationship.

Front 25

Incentive Pay

Back 25

Also known as variable compensation, incentive pay rewards employees for individual and organizational results. Individual and group incentives have become a common component of the total rewards package.

Front 26

Incentive stock options (ISO)

Back 26

Can be offered only to employees; consultants and external members of the board of directors are not eligible

Front 27

Indirect compensation

Back 27

Comprised of any employee payment not associated with wages and salaries. This include fringe benefits such as vacation, sick and holiday pay insurance premiums paid on behalf of employees' leaves of absence' 401(k) or other pension plans; and government-mandated benefits such as social security or fmla and other benefits

Front 28

Individual coverage

Back 28

Organizations whose daily work involves interstate commerce. It includes those who have regular contact by telephone with out-of-state customers, vendors, or suppliers; on that basis, it covers virtually all employers in the united states.

Front 29

Intermittent FMLA leave

Back 29

A leave in which the employee is absent from work for multiple periods of time because of a single illness or injury.

Front 30

Internal equity

Back 30

The value of jobs to each other relative to their value to the organization

Front 31

Intrinsic reward

Back 31

A reward that encourages individual employee self-esteem, such as satisfaction from challenging and exciting assignments

Front 32

Job evaluation

Back 32

The process used traditionally to determine the value of jobs relative to each other within the organization

Front 33

Job pricing

Back 33

Occurs when a new job is created or an existing job has undergone changes and is a common practice when administering compensation