Legislation And Compensation. Historical Development Early written records document laws that regulated hours worked, compensation, and taxation. Religion, the natural environment, and custom were the primary forces that gave substance to these laws. Early Wage and Hour Controls.
17th and 18th Centuries
17th and 18th Centuries
The Industrial Revolution began in England during the last half of the 18th century.
Pay was extremely low, hours were long, and working conditions were deplorable.
17th and 18th Centuries
The Industrial Revolution came to the United States in the first half of the 19th century and working conditions similar to those experienced in Europe were common in America.
Granted collective bargaining rights to railway and airline employees and became the first legal exception to the "employment-at-will" doctrine.
First national minimum wage act requiring construction contractors and their subcontractors receiving federal funds in excess of $2,000 to pay at least the prevailing wage in their area.
Granted collective bargaining right to most U. S. workers and further breached the "employment-at-will" doctrine.
Bargaining was permitted over wages, hours, and working conditions.
Set prevailing wage standard for all government let contracts in excess of $10,000 and additionally required time-and-a-half to be paid for work exceeding8 hours a day and 40 hours in a work week.
The 8 hour a day provision was dropped in 1986.
This act and its amendments is the definitive wage and hour law of the United States.
Established overtime pay for all hours worked in excess of 40 in a work week. (1.5 x rate)
Established a minimum wage ($5.15)
Established minimum hiring ages (14,16,18)
Established and identified exceptions and exemptions for each key provision of the act.
Most states have "minimum wage" laws and they are used in some cases to cover workers who fall through the federal cracks.
State laws cannot preempt federal law.
Each of the 50 states has its own WC laws and administrative agencies.
These laws are designed to:
Who Pays ?
Workers compensation plans are in large part insured by private carriers while others are self-insured or covered through state funds.
In most cases the employer pays.
This act was established to provide American workers with protection from total economic destitution in the event of termination of employment beyond their control.
Passed to protect pension plans from failure and obsolete assumptions, this law established:
The Pension Benefit Guaranty Corporation (PBGC) to administer single-employer and multi-employer insurance plans to ensure that covered employees receive their basic pension benefits.
The corporation provides insurance protection for employer liability upon termination of a pension plan.
The first federal antidiscrimination law relating directly to women.
It is an amendment to the fair labor standards act and specifically prohibits employers from paying unequal wages for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions.
Also known as the Equal Employment Opportunity Act of 1964 and continues to have an impact on the hiring, training, compensation, promotion, and termination practices of organizations.
The act applies to employee discrimination based on race, color, religion, national origin, and sex.
These orders ban discrimination on the same basis as the civil rights act by any employer with a government contract of more than $10,000.
These orders are enforced by the OFCCP who also require Affirmative Action plans from all employers with 50 or more employees and contracts of $50,000.
This act prohibits discrimination in hiring individuals between 40 and 65 years of age. An amendment to this act in 1978 prohibited forced retirement of any employee under 70 years of age, and a 1986 amendment abolished mandatory retirement at any age. Exceptions were noted.
An amendment to the civil rights act, it prohibits employers from excluding from employment opportunities (disability insurance, medical benefits, leave, accrual of seniority) any applicant or employee because of pregnancy or related conditions.
Gives civil rights protection to individuals with disabilities similar to those provided to individuals on the basis of race, sex, national origin, age, and religion. It guarantees equal opportunities to qualified disabled individuals with regard to employment, public accommodations, transportation, telecommunications, and state and local government service.
Tax law, and IRS policies and regulations, can be very effective in determining the kinds and features of compensation plans an organization offers to its employees and the manner in which it funds and operates these plans.
When meeting IRS qualificationrequirements, employers can deduct contributions to a plan as business-related costs, and the employee can defer the employer-made payment as earned income until actual receipt of the contribution (as well as any gains the contribution may have earned).
First income tax legislation - passed to assist in financing the civil war - repealed in 1872.
Granted congress the right to levy and collect taxes on income from whatever source.
1 percent tax on income between $3,000 and $20,000.