Compensation And Benefits

Front 1

FLSA

Back 1

Establishes a minimum wage, overtime provisions, and child labor, applies to most non-managerial employees in private industry.

Front 2

Overtime

Back 2

Any hours worked over forty in a workweek. Non-exempt employees are eligible for extra pay.

Front 3

Compensable Time

Back 3

•Time spent by employees performing work related tasks.

Front 4

Compensatory time off

Back 4

Time off given instead of payment for additional time worked.

Front 5

Non-exempt employee

Back 5

Employees who are covered by the Fair Labor Standards Act’s minimum wage and overtime pay provisions. These employees are typically paid hourly.

Front 6

Exempt employee

Back 6

Employees not entitled to overtime pay under the fair labor standards act; positions classified as executive, administrative, professional, or outside sales

Front 7

Independent contractor

Back 7

Individuals who contract with employers to perform specific projects or tasks; they are not employees of the organization.

Front 8

Prevailing wage

Back 8

The minimum wage to be paid employees working on federal contracts or subcontracts. The wage is determined by the wage paid other workers in the area.

Front 9

Davis-Bacon act

Back 9

Employers with federal construction contracts must pay laborers and mechanics the prevailing wages of the majority of the workers in the same area.

Front 10

Walsh-Healy public contracts act

Back 10

Contractors with government contracts over $10,000 for supplies, equipment, and materials must pay workers prevailing wage rates.

Front 11

Service contract act

Back 11

Contractors with government service contracts over $2,500 must pay workers prevailing wage rates.

Front 12

Prevailing wage laws

Back 12

Davis-Bacon Act

–Construction Projects, over $2,000

•Walsh-Healy Public Contract Act

–Supplies, equipment, materials, over $10,000

•Service Contract Act

–Services, over $ 2,500

Front 13

Total rewards

Back 13

Compensation (direct pay),

•Benefits, and

•The work experience (intangible rewards).

Front 14

Entitlement philosophy

Back 14

Traditional compensation philosophy that gives automatic salary increases based on seniority.

Front 15

Competencies

Back 15

Basic employee characteristics/behaviors that may enhance individual or team performance.

Front 16

Maturity curve

Back 16

A process of determining employees’ salaries as a function of experience. It assumes that years in a profession equate with more highly valued competencies.

Front 17

Lead policy

Back 17

Organization intentionally sets pay structure and targets pay level above the market rate.

Front 18

Match policy

Back 18

Organization pay policy is to set pay structures and targets pay levels to match the market rates.

Front 19

Lag policy

Back 19

Organization intentionally sets pay structures and targets pay levels below the market rate.

Front 20

Base pay

Back 20

The basic compensation of a specified position of employment excluding any other payments or allowances.

Front 21

Salary

Back 21

The total amount regularly paid to an individual regardless of number of hours worked.

Front 22

Wages

Back 22

Payments to employees who are paid hourly (non-exempt) directly calculated on the amount of time worked.

Front 23

Piece rate system

Back 23

Individual incentive plan where workers are paid for each unit produced based on a predetermined standard.

Front 24

Straight piece rate system

Back 24

Individual incentive plan in which pay is determined by multiplying the number of units produced by the rate for one unit.

Front 25

Differential piece rate system

Back 25

An individual pay plan in which employees are paid one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

Front 26

Commission

Back 26

The percentage of the selling price that is paid to a sales employee as all or part of compensation.

Front 27

Straight commission plan

Back 27

Sales compensation based only on a percentage of each sale.

Front 28

Combined salary and commission plan

Back 28

Sales compensation plan that includes straight salary and a commission.

Front 29

Draw

Back 29

A payroll advance repaid by future commissions earned by the sales employee.

Front 30

Differential pay

Back 30

Pay in addition to base pay for special work circumstances.

Front 31

Shift differential

Back 31

Paying a premium to employees working less desirable shifts.

Front 32

Individual incentives

Back 32

Rewards for individual effort and performance; piece-rate systems, individual bonuses, sales commissions.

Front 33

Bonus

Back 33

A one time amount received or paid in addition to the regular wage or salary.

Front 34

Variable pay

Back 34

Pay tied to productivity or some measure that can vary with the firm’s profitability.

Front 35

Earnings at risk incentive plan

Back 35

Incentive pay plan that puts a portion of the worker’s base pay at risk, while also allowing the opportunity to earn more above base pay if goals are met or exceeded.

Front 36

Team incentive plan

Back 36

Team members share an incentive bonus when production standards are met or exceeded; commonly used in gain sharing plans.

Front 37

Gain sharing

Back 37

An incentive plan in which groups of employees receive awards based on increased profits, productivity or efficiency.

Front 38

Scanlon plan

Back 38

Incentive bonus plan using employee committees to achieve cost-reduction improvements. A formula determines the employees share of cost savings.

Front 39

Scanlon plan

Back 39

Incentive bonus plan using employee committees to achieve cost-reduction improvements. A formula determines the employees share of cost savings.

Front 40

Rucker plan

Back 40

Incentive bonus plan based on the relationship between the total earnings of hourly employees and the increased production by the employees.

Front 41

Improshare

Back 41

Gainsharing program where bonuses are based on the overall achievements and productivity of a work team.

Front 42

Organizational incentives

Back 42

Rewards employees for the performance of the entire organization.

Front 43

Prerequisites

Back 43

Special benefits for executives that are usually non-cash items.

Front 44

Equity

Back 44

The perceived fairness regarding what an individual does and what is received.

Front 45

Pay equity

Back 45

The similarity of pay for jobs requiring comparable levels of knowledge, skills, and abilities.

Front 46

Job analysis

Back 46

The process of determining the skills and duties required of a job.

Front 47

Job description

Back 47

The written duties and responsibilities of a job.

Front 48

Job specifications

Back 48

The knowledge, skills, and abilities required for a job.

Front 49

Job Evaluation

Back 49

A systematic process for establishing the relative value/worth of jobs within an organization (internal equity).

Front 50

Compensable factor

Back 50

An essential, compensable element of a job such as skills, effort, responsibility, and working conditions.

Front 51

Ranking

Back 51

Non-quantitative (whole job) evaluation method of placing each job in order of relative worth to the organization.

Front 52

Job classification system

Back 52

Job evaluation system where jobs are classified according to a series of pre-determined salary grades.

Front 53

Point method

Back 53

Quantitative job evaluation system that assigns points to each job to determine its relative worth.

Front 54

Factor comparison system

Back 54

Job evaluation system in which the evaluation process is accomplished on a factor-by-factor basis.