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54 Cards in this Set
- Front
- Back
FLSA |
Establishes a minimum wage, overtime provisions, and child labor, applies to most non-managerial employees in private industry. |
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Overtime |
Any hours worked over forty in a workweek. Non-exempt employees are eligible for extra pay. |
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Compensable Time |
•Time spent by employees performing work related tasks. |
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Compensatory time off |
Time off given instead of payment for additional time worked. |
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Non-exempt employee |
Employees who are covered by the Fair Labor Standards Act’s minimum wage and overtime pay provisions. These employees are typically paid hourly. |
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Exempt employee |
Employees not entitled to overtime pay under the fair labor standards act; positions classified as executive, administrative, professional, or outside sales |
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Independent contractor |
Individuals who contract with employers to perform specific projects or tasks; they are not employees of the organization. |
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Prevailing wage |
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. |
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Davis-Bacon act |
Employers with federal construction contracts must pay laborers and mechanics the prevailing wages of the majority of the workers in the same area. |
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Walsh-Healy public contracts act |
Contractors with government contracts over $10,000 for supplies, equipment, and materials must pay workers prevailing wage rates. |
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Service contract act |
Contractors with government service contracts over $2,500 must pay workers prevailing wage rates. |
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Prevailing wage laws |
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 |
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Total rewards |
Compensation (direct pay), •Benefits, and •The work experience (intangible rewards). |
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Entitlement philosophy |
Traditional compensation philosophy that gives automatic salary increases based on seniority. |
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Competencies |
Basic employee characteristics/behaviors that may enhance individual or team performance. |
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Maturity curve |
A process of determining employees’ salaries as a function of experience. It assumes that years in a profession equate with more highly valued competencies. |
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Lead policy |
Organization intentionally sets pay structure and targets pay level above the market rate. |
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Match policy |
Organization pay policy is to set pay structures and targets pay levels to match the market rates. |
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Lag policy |
Organization intentionally sets pay structures and targets pay levels below the market rate. |
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Base pay |
The basic compensation of a specified position of employment excluding any other payments or allowances. |
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Salary |
The total amount regularly paid to an individual regardless of number of hours worked. |
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Wages |
Payments to employees who are paid hourly (non-exempt) directly calculated on the amount of time worked. |
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Piece rate system |
Individual incentive plan where workers are paid for each unit produced based on a predetermined standard. |
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Straight piece rate system |
Individual incentive plan in which pay is determined by multiplying the number of units produced by the rate for one unit. |
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Differential piece rate system |
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. |
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Commission |
The percentage of the selling price that is paid to a sales employee as all or part of compensation. |
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Straight commission plan |
Sales compensation based only on a percentage of each sale. |
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Combined salary and commission plan |
Sales compensation plan that includes straight salary and a commission. |
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Draw |
A payroll advance repaid by future commissions earned by the sales employee. |
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Differential pay |
Pay in addition to base pay for special work circumstances. |
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Shift differential |
Paying a premium to employees working less desirable shifts. |
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Individual incentives |
Rewards for individual effort and performance; piece-rate systems, individual bonuses, sales commissions. |
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Bonus |
A one time amount received or paid in addition to the regular wage or salary. |
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Variable pay |
Pay tied to productivity or some measure that can vary with the firm’s profitability. |
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Earnings at risk incentive plan |
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. |
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Team incentive plan |
Team members share an incentive bonus when production standards are met or exceeded; commonly used in gain sharing plans. |
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Gain sharing |
An incentive plan in which groups of employees receive awards based on increased profits, productivity or efficiency. |
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Scanlon plan |
Incentive bonus plan using employee committees to achieve cost-reduction improvements. A formula determines the employees share of cost savings. |
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Scanlon plan |
Incentive bonus plan using employee committees to achieve cost-reduction improvements. A formula determines the employees share of cost savings. |
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Rucker plan |
Incentive bonus plan based on the relationship between the total earnings of hourly employees and the increased production by the employees. |
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Improshare |
Gainsharing program where bonuses are based on the overall achievements and productivity of a work team. |
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Organizational incentives |
Rewards employees for the performance of the entire organization. |
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Prerequisites |
Special benefits for executives that are usually non-cash items. |
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Equity |
The perceived fairness regarding what an individual does and what is received. |
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Pay equity |
The similarity of pay for jobs requiring comparable levels of knowledge, skills, and abilities. |
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Job analysis |
The process of determining the skills and duties required of a job. |
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Job description |
The written duties and responsibilities of a job. |
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Job specifications |
The knowledge, skills, and abilities required for a job. |
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Job Evaluation |
A systematic process for establishing the relative value/worth of jobs within an organization (internal equity). |
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Compensable factor |
An essential, compensable element of a job such as skills, effort, responsibility, and working conditions. |
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Ranking |
Non-quantitative (whole job) evaluation method of placing each job in order of relative worth to the organization. |
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Job classification system |
Job evaluation system where jobs are classified according to a series of pre-determined salary grades. |
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Point method |
Quantitative job evaluation system that assigns points to each job to determine its relative worth. |
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Factor comparison system |
Job evaluation system in which the evaluation process is accomplished on a factor-by-factor basis. |