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Legal Environment and Total Rewards

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Discuss how laws affect the wages that employees are paid. Bring in specific private-sector examples as appropriate (including names of employers).

Do laws interfere with or complement an employer's goal of using WAGE and SALARY (PAY) PLANS to recruit, motivate and retain employees? Please discuss.

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Solution Preview

First and foremost, it is important to acquaint yourself with laws that relate to employee wages. The government has the FLSA, which is the Fair Labor Standards Act. The FLSA mandates minimum wages and overtime pay, regardless of industry (private or public). Additionally, FLSA provides guidelines for working ages and certain aspects of employment (age and industry). Regardless of the industry, the minimum wage and overtime laws are non-negotiable (for the most part). Remember, in the restaurant industry, those who are tipped can receive under minimum wage, due to supplementary payment.

Governmental Wage Information-
http://www.dol.gov/compliance/guide/minwage.htm
http://www.dol.gov/opa/aboutdol/lawsprog.htm ...

Solution Summary

Understanding how the law affects wages is important to all individuals, as federal law mandates some employment law aspects. The solution below offers information regarding how the law(s) affects wages and how the law can interfere with an organization's ability to recruit, motivate, and retain employees.

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Legal Environment/Total Rewards

Can you please assist me with the following scenario?

You have been hired as an HRM consultant. You have knowledge of all of the legal constraints an employer faces. The head of your consulting team, your boss, asks you to prepare a persuasive paper for some potential clients. These clients are employers who believe in the motivational aspects of employee benefits, but they are struggling to find the best and most cost effective benefits to offer to increase employee effectiveness and productivity. In your paper, discuss two or three employee BENEFITS that provide great opportunities to increase employee productivity--contributing to the bottom line. In your paper, offer specific details and provide private-sector examples (include employers by name) to support your recommendations. Be sure to also discuss the challenges (problems) of offering these specific benefits.

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