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Legal Environment and Total Rewards

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/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.