The laws governing compensation management practices include;
THE FAIR LABOR STANDARDS ACTIt is also called the wage and hour law. Four provisions affect compensation programs. The provisions entail overtime pay, minimum wages, equal pay, and record-keeping requirements.
- Record-keeping requirements
Employers must demonstrate an official sheet describing the terms of the FLSA. Employers must also retain employee time and pay records.
- Overtime pay
There is no limit on the number of hours workers may operate in any workweek. The FLSA does not need overtime pay for work on weekends, vacations, or normal days of rest unless overtime is worked on these days.
- Minimum wages
An employee is entitled to a higher minimum wage when he/she is subject to minimum wage laws of each state. The Act sets the minimum wage amount that an employer can pay an employee. It establishes the maximum number of hours an employee must work, which is set 1.5times the employees’ regular rate of pay before they receive overtime pay. An exemption to minimum wage provision of FLSA is an employee paid each pay period but not hourly.
- EQUAL ACT PAY
The laws require that the employees must pay sexes equally and not pay one gender higher wages than the other for performing the same job.