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Governmental Influence on Compensation Administration

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How do governmental influences affect compensation administration? Use specific examples.

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This solution of 395 words provides a discussion on how the government influences how management compensates employees through the Fair Labor Standards Act, Retirement Plan and Insurance Regulations.

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The government has a major influence on compensation administration. Compensation administration deals with the pay that a company gives to its employees. In terms of government, it is mostly influenced by:

1. Fair Labor Standards Act. For any non exempt employee, the government regulates the minimum wage, who can work and when someone has to be paid overtime. Thus, the copensation strategy of an employer is also influenced by this. For example, an employer may hire more than one employee for the same job in order to avoid paying overtime to one good employee who would ...

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