REWARD SYSTEMS SHOULD ENCOURAGE WORKERS TO:. JOIN AND REMAIN WITH THE ORGANIZATION Attraction & Membership Loyalty & Longevity PERFORM THEIR JOBS EFFECTIVELY Attendance and Required Behavior Accomplish Specific Results Do What is Expected
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JOIN AND REMAIN WITH THE ORGANIZATION
Attraction & Membership
Loyalty & Longevity
PERFORM THEIR JOBS EFFECTIVELY
Attendance and Required Behavior
Accomplish Specific Results
Do What is Expected
ENGAGE IN SPONTANEOUS, INNOVATIVE BEHAVIOR ON BEHALF OF THE FIRM
Put Themselves Out by “Going the 2nd Mile”
Demonstrate Committed “We Care” Behavior
Doing the Unexpected, But Highly Appreciated
ORGANIZATIONAL CITIZENSHIP BEHAVIOR
HOW TO DIVIDE THE COMPENSATION DOLLAR
DISTRIBUTIVE JUSTICE PRINCIPLE
Pay system remunerates/rewards on what basis… Equality? Need? Seniority? Job Demands? Performance (Merit)? Social Worth?
ABILITY TO PAY COMPETITIVE WAGES
SET PAY AT, ABOVE, ORBELOW THE GOING RATES IN THE INDUSTRY
What can we afford? What other compensation do we provide?
CONFIDENTIALITY OF THE PAY SYSTEM
Is it secret, or are the scales and criteria public information?
PAY EQUITY (Fairness)
Compared to other jobs within the organization
Compared to similar jobs outside the organization
PHILOSOPHY OF EXECUTIVE COMPENSATION
Wage differences between the top and bottom jobs in the firm (“multiples”)
What is minimum pay in this company? What is the maximum pay allowed?
PHILOSOPHY OF WAGE PROGRESSION
Number of pay grades and amount of overlap between them
Number of steps within each grade?
On what basis is each move (step) granted? Merit? Seniority? Experience?
A SINGLE RATE FOR EACH JOB
There is no range, this job pays $12.00/hr
There are no pay increments awarded for either seniority or merit
A PAY RANGE FOR EACH JOB
The pay for this job ranges from $11.00 to $17.00/hr
On what basis do employees progress through the range?
SENIORITY? TIME-IN-GRADE? MERIT?
How large should each step or increment be? $.50? $1.00? $2.00?
A PAY GRADE SYSTEM
Several jobs are grouped together into a single pay grade
All these jobs will share a common pay range
Painters, mechanics, and truck drivers are paid from $10.50 to 16.85/hr
Manager rank-orders all jobs in descending order of importance
Used in small organizations with a limited number of different jobs
Jobs are grouped together into clusters with similar difficulty
A generic “description” is written for each cluster or grade (classification)
US Postal Service…all jobs are slotted into one of 16 job grades
Key jobs selected and ranked on four or five job factors (skills, effort, resp, work cond)
Allocate the base wage for each key job across factors (eg, $4 for skill, $3 for effort, etc)
Assemble benchmarks into a manual which can be used to set pay for other non-key jobs
Establish criteria (compensable factors) on which to evaluate all jobs
Write degree descriptions which illustrate the variability of demand for each factor
Assign weights to each factor; then assign points to each degree descriptor
Assemble into a point manual, which can act as a standard to evaluate all jobs
The more points allocated to the job, the higher the base wage should be
SELECT KEY JOBS (well-known jobs which we believe are fairly-paid)
CREATE RANK ORDERINGS OF THE KEY JOBS WITHIN EACH OF THE UNIVERSAL COMPENSABLE FACTORS
Effort (Physical and Mental)
ALLOCATE THE KEY JOB PAY ACROSS THE COMPENSABLE FACTORS
How much of the total wage do you pay for “skills?” …How much for “effort?”
CREATE A FACTOR COMPARISON MANUAL USING YOUR MONETARY ALLOCATIONS TO BENCHMARK THE VALUE OF EACH KEY JOB.
USE THIS FACTOR COMPARISON “MANUAL” TO ASSIGN BASE PAY VALUES TO THE NON-KEY JOBS WITHIN THE ORGANIZATION.
THE FACTOR COMPARISON SYSTEM COMPARES JOBS TO JOBS…THERE REALLY ISN’T ANYTHING SPECIFIC IN THE MANUAL TO PRECISELY DEFINE WHAT “SKILLS” IS.
KEY JOBS“Fair” Base Pay Rate
Systems Programmer$ 20/hr
Office Secretary$ 13/hr
Programmer $ 10Plumber $ 6Programmer $ 6Plumber $ 4.50
Secretary $ 6Carpenter $ 5.50Secretary $ 4.50Painter $ 4
Carpenter $ 5Painter $ 5Carpenter $ 3.50Carpenter $ 3
Plumber $ 4.50Programmer $ 3Plumber $ 3Secretary $ 1.50
Painter $ 3Secretary $ 1Painter $ 2Programmer $ 1
Establish criteria (more specific examples of compensable factors) on which to evaluate all jobs
Write degree descriptions to illustrate the variability of demand for each factor
Assign weights to each factor
Assign points to each degree descriptor in harmony with the weightings
Assemble these descriptions and points into a manual, which can act as a standard to evaluate all jobs
Validate the manual by evaluating “KEY JOBS” on each criterion.
Allocate the corresponding points, run a regression analysis on the assigned points and the “fair” base pay for each key job. If the regression is a good statistical fit, and at least 90% of the key jobs stay within 10% of the calculated regression line, the manual has been validated, and can be used to assign base pay rates to all non-key jobs in the organization.
The more points allocated to the job, the higher the base wage should be.
Education represents the knowledge required to perform the duties involved in the job; usually acquired through formal education. Consider only what the job requires, not the education of the current employee on the job. Exclude consideration of on-the-job experiences for this factor. The degrees are expressed in terms of formal education for convenience.
120Able to read and follow simple oral and written instructions. Can add and subtract. Can fill out simple reports and forms. Equivalent to an eighth grade elementary education.
235Able to give clear oral and written instructions. Writes reports. Makes simple computations and comparisons. Can multiply and divide, equivalent to skills acquired by a tenth grade education.
350Good knowledge of high school subjects such as algebra, geometry, physics, chemistry, English, computing or knowledge of commercial, mechanical, or vocational subjects equivalent to a typical high school graduate.
480One year of college or vocational/technical training beyond the high school level in a specific technical or theoretical subject area.
5115Two years of specific subject knowledge beyond high school is required. Specialized subject knowledge may demand registration, certification, or licensure. Required education is equivalent to an AS degree.
6155A specialized baccalaureate degree is required.
7200A specialized master's degree is required.
I. EDUCATION (20%)
1 (20)Able to read, do simple math (add/subtract), and follow instructions (eighth-grade level)
2 (35)Makes comparisons, computes (multiply/divide), writes instructions & reports (tenth grade level)
7 (200)Master’s degree – specialized degree required
II. EXPERIENCE (10%)
4 (140)Formal supervision of 5-9 workers
5 (180)Formal supervision of ten or more workers
IV. PHYSICAL DEMANDS (17%)
5 (170)Regularly lifts/carries loads > 60 lbs; stands, pushes, crawls; very strenuous activity much of the day
V. PROPERTY/LIABILITY (10%)
1 (10)Potential loss is minimal < $100; cash, equipment, product quality
2 (30)Potential loss up to $1000 per incident; cash, equipment, product quality
3 (70)Potential loss up to $5000 per incident; cash, equipment, product quality, lawsuit
VI. CONFIDENTIAL INFORMATION ( 5%)
VII. PUBLIC CONTACTS (10%)
VII. WORK ENVIRONMENT (10%)
1---SELECT 10-15 “KEY JOBS” FROM WITHIN THE ORGANIZATION.
--a “KEY” job is one that has a well-known job description, and is fairly paid…
in other words, we believe the current pay for the job is correct/fair.
2---EVALUATE EACH KEY JOB, USING THE JOB DESCRIPTION AND THE POINT MANUAL
3---FOR EACH COMPENSABLE FACTOR, ASSIGN THE APPROPRIATE “DEGREE” AND THE APPROPRIATE POINT VALUE ASSOCIATED WITH IT.
4---ONCE COMPLETE, TOTAL UP THE POINTS ASSIGNED TO EACH KEY JOB.
5---REPORT THE CURRENT PAY FOR EACH POSITION (…which we assume is fair/correct).
6---PLOT EACH KEY JOB ON A GRAPH (Points assigned on the bottom, Pay rate on the left)
7---RUN A REGRESSION ANALYSIS OF THE DATA.
8---IF THE REGRESSION MODEL IS STATISTICALLY APPROPRIATE, THE MANUAL IS USABLE
COMPENSABLE FACTORSFINISH SPRAYER
(Job Specifications)ExplanationAssign degreePoints
EducationAble to read, write, and make simple math calculations120
ExperienceNo previous experience needed, can learn on-the-job110
SupervisionNo supervisory duties118
Physical DemandsLifts 60 lbs or more, stands constantly, must turn pieces by hand5170
Property/LiabilityKeep equip unclogged; paint mistakes cause rework + lost production230
Confidential Information No exposure to confidential information1 5
Public ContactsWorks alone… all work-related contacts are internal110
Work EnvironmentExposed to fumes and overspray, must wear respirator at all times4100
TOTAL POINTS ASSIGNED363
GREEN CIRCLE RATES
RAISE PAY UP AS SOON AS POSSIBLE TO THE APPROPRIATE LEVEL
GOLD CIRCLE RATES
LEAVE RATE AS IS…DO NOT ADJUST…CONTINUE GIVING RAISES & COLAs
SILVER CIRCLE RATES
LEAVE RATE AS IS…DO NOT ADJUST, CONTINUE COLAs BUT NOT RAISES
RED CIRCLE RATES
MUST BRING RATES DOWN TO THE PROPER LEVEL
BRING RATES IMMEDIATELY DOWN INTO LINE
Give proper notification first
PAY A “LUMP SUM” SETTLEMENT
Bring rates into line, but pay a one-time severance settlement
PROVIDE AN “ADDER” SUPPLEMENT
Bring rates into line, but issue a supplemental check each pay period that is gradually reduced over time
FREEZE PAY RATE IMMEDIATELY
No raises given for seniority or COLA
Eventually, the entire organizational pay structure will rise (due to COLAs and wage surveys) which will bring the pay rate back into range, at which time the worker will again get raises and COLAs.
TRANSFER THE WORKER TO A HIGHER-RATED JOB
DETERMINING THE SCOPE OF THE SURVEY
Where are we having trouble retaining workers?
Where are market rates likely to be different from internal rates?
Which jobs are the most difficult to fill?
Where are we adding new positions to our organization?
Minimal time investment needed for the individual firm
Data is based on large samples – adequate representation
Surveys conducted by experts…people who know how to do it
Data is summarized, categorized, easy to interpret
There may be a fee (cost) for access to the data
You can’t select the specific companies surveyed
Can’t control the type of data reported (which jobs? benefits?)
Data summaries may mask differences you want to examine
PHONE INTERVIEW -- (easiest)
+ Quick and relatively easy to do
+ Job content can be clarified to ensure the jobs are comparable
+ Can build rapport with respondent over time. Future contacts will be easier.
- Puts a burden on the responder to reply immediately (to a possible stranger)
- May yield incomplete answers because the respondent didn’t anticipate your call
- Long phone calls are not welcome. You can’t get much data in five minutes.
MAILED QUESTIONNAIRE -- (most common)
+ Can collect data on many different job titles, benefits, etc
+ Responses aren’t rushed – allows time for careful thought before answering
- Response rates may be very low
- Misunderstanding or confusion about comparable jobs cannot be clarified
- Only gathers responses to specific questions posed - if you forgot to ask – too bad!
INTERVIEW – (most reliable)
+ Can ask questions, clarify job titles, etc
+ Gathers data with minimum impact on respondent
+ Builds relationships which can make future data exchange easier
- Very time consuming to make and set appointments, conduct interviews, etc
- Costly method; the expense of travel, etc
CONFERENCE -- (least used, but promising)
+ Takes advantage of professional meetings and conferences of HR personnel
+ Agenda of jobs to be reviewed, etc. established ahead of time—people come prepared
+ Face-to-face meetings allow clarification and detailed discussion of jobs, benefits, etc
- Meetings can be time consuming and tiring, after a day of conference activities
- Determining when and where to gather requires coordination with several other firms
Job titles and summary of duties section
Comparable job titles in the surveyed organization
Base pay ranges (bottom, midpoint, top)
Benefits (is the medical, pension, etc. contributory?)
Incentives (how large and based on what?)
Use of stratified samples?
Will reminders be sent?
ARE WE TAKING FULL ADVANTAGE OF THE REWARDS WE CONTROL?
HAVE WE THOUGHT THROUGH THE FULL IMPACT THAT OUR REWARD SYSTEM HAS ON THE ORGANIZATION?
DO EMPLOYEES HIGHLY VALUE THE REWARDS WE MAKE AVAILABLE TO THEM?
DO EMPLOYEES KNOW WHAT THEY MUST DO TO OBTAIN THESE REWARDS?
IN SHORT, DO WE REWARD EXCELLENCE OR MEDOCRITY?
HOW TO ADMINISTER INCENTIVE PAY
A.ADD IT TO THE REGULAR PAYCHECK
ONCE ACQUIRED…FOREVER PAID…NEVER IS “EARNED” AGAIN
INCENTIVE PAY MIXED WITH BASE PAY…WORKERS LOSE MOTIVATION
B.PAY IT ALL OUT AS A LUMP-SUM AT ONE TIME
LARGE CASH OUTFLOWS ARE DIFFICULT FOR THE FIRM TO MANAGE
OPPOSED BY UNIONS BECAUSE ANNUAL WAGES DON’T GROW
1.SENIORITY & LONGEVITY SYSTEMS
2.ACQUIRED SKILLS & KNOWLEDGE INCENTIVES
3.PIECE RATES & COMMISSIONS
WHEN IS IT FEASIBLE TO USE PIECE RATES?
1.UNITS OF WORK ARE EASY TO DISTINGUISH AND MEASURE
2.QUALITY IS OF LESSER IMPORTANCE THAN QUANTITY
3.WORKER INVOLVEMENT IS A MAJOR DETERMINANT OF PRODUCTIVITY
4.THE WORKER CONTROLS WORK SPEED…NOT MACHINE-PACED
5.CLOSE SUPERVISION IS IMPRACTICAL
6.CHANGES IN WORK PROCESSES ARE INFREQUENT
7.YOU HAVE EXPERTS TO SET AND EVALUATE YOUR WORK STANDARDS
8.COMPETITION REQUIRES THAT UNIT LABOR COSTS BE PREDICTABLE
WHY DO MERIT PLANS FAIL? (HAMNER, 75)
6.COST-REDUCTION (GAINSHARING) PLANS
8.STOCK OWNERSHIP PLANS
ABSENTEEISM, SALES PROMOTIONS, OUTSTANDING SERVICE AWARDS
JEALOUSY, UNCOOPERATIVENESS, COMPETITION WITHIN TEAMS AND GROUPS
1911 – WORKER’S COMPENSATION
BENEFITS FOR ON-THE-JOB INJURIES
1935 – UNEMPLOYMENT COMPENSATION
NO-FAULT LOSS OF JOB BENEFITS; 6.2% of first $7000, w/ 5.4% to State
1935 – SOCIAL SECURITY ACT
7.65% paid by employee, 7.65% matched by employer; 13.2% for self-employed
1974 – EMPLOYEE RETIREMENT INCOME & SECURITY ACT (ERISA)
EMPLOYERS MUST SET ASIDE PENSION OBLIGATIONS ANNUALLY
1985 – CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT (COBRA)
>20+ Employees; Separated workers can stay on medical insurance for 18 months
1993 – FAMILY AND MEDICAL LEAVE ACT
>50+ Employees; Unpaid leave for up to 12 weeks for family/medical emergencies
2010 – PATIENT PROTECTION & AFFORDABLE CARE ACT (PPACA)
HEALTH INSURANCE REFORM, 26 yr old dependents covered, Pre-existing conditions eliminated
SOCIAL SECURITY -- 40 Quarters –Earn $500+ per qtr
UNEMPLOYMENT COMPENSATION – 26 wks + 13
NO-FAULT JOB LOSS
PAYMENT FOR TIME NOT WORKED
FUNERAL LEAVE, ETC.
SOCIAL SECURITY – mandated by the federal government
PRIVATE PENSION PLANS
DEFINED BENEFIT vs DEFINED CONTRIBUTION PLANS
CONTRIBUTORY vs NONCONTRIBUTORY PLANS
INIDIVIDUAL RETIREMENT ACCOUNTS (IRAs)
PROFIT SHARING PLANS
EMPLOYEE STOCK PLANS
EMPLOYEE RETIREMENT INCOME SECURITY ACT of 1974 (ERISA)
ADEQUATE FUNDING OF PRIVATE PENSION PLANS
REPORTING & DISCLOSURE
ORGANIZATIONS WITH 50 OR MORE EMPLOYEES
EMPLOYED FOR ONE YEAR PRIOR TO LEAVE REQUEST
UP TO 12 WEEKS OF UNPAID LEAVE FOR:
SERIOUSLY ILL FAMILY MEMBER (Child, Spouse, Parent)
EMPLOYEE’S OWN ILLNESS
EMPLOYERS MUST CONTINUE HEALTH COVERAGE
MUST ALLOW RETURN TO SAME/COMPARABLE POSITION
“KEY” EMPLOYEES EXEMPTED (Highest paid 10%)
National Federation of Independent Business v. Sebelius 2012
U.S. Supreme Court ruled most of the law is legal.
Health insurance must cover all pre-existing conditions (excl. Tobacco)
Premiums cannot be adjusted for gender, age, or geographic location
Up to 26 yrs old can stay on parents insurance coverage
ORGANIZATIONS WITH > 50 EMPLOYEES MUST “PLAY or PAY”
Do you have employees at < 400% of poverty-level wages? If an employee can claim a government subsidy for health insurance, the employer will be assessed $2000 per claimant, plus penalty (50-30)*$2000.
Some employers will drop health insurance and pay penalty… it’s cheaper!
Others will increase part-time work (< 30 hrs/wk) and avoid the penalties.
** Medicare taxes up .9% >$200,000 ; Unearned income tax increases 3.8%
“Cadillac” plans w/b taxed 40% (if plan costs >$10,200 indiv/$27,100 family)
THE JOB ITSELF
POTENTIAL FOR ADVANCEMENT
THE WORK ENVIRONMENT
APPROPRIATE STATUS SYMBOLS
ENLIGHTENED MANAGERIAL PHILOSOPHY & PROGRAMS
JOB SHARING/PART-TIME WORK
INNOVATIVE COMPANY POLICIES
OVERTIME FOR EXEMPT EMPLOYEES
DAYCARE & ELDERCARE BENEFITS
FLEXIBLE (CAFETERIA) BENEFIT PLANS
MEDICAL TRAVEL OPTIONS
TYPES OF FLEXIBLE PLANS
MODULAR ( BASE + PACKAGES)
FLEXIBLE SPENDING ACCOUNTS
HEALTH SAVINGS ACCOUNTS
CAPS OR CONTAINS BENEFIT COSTS
RAISES CONSCIOUSNESS RE: BENEFIT COSTS
PROVIDES WORKERS ONLY THE BENEFITS THEY DESIRE
COST OF BENEFITS FLUCTUATES (ADVERSE SELECTION)
PEOPLE MAKE IRRESPONSIBLE DECISIONS
IRS RULINGS & TAX LIABILITY ISSUES
BOOKKEEPING & ADMINISTRATIVE ISSUES
GIVE EMPLOYEES THE OPTION TO TRAVEL ABROAD FOR ELECTIVE MEDICAL PROCEDURES
…knee replacements, dental work, cosmetic surgery, etc.
TREATED AT JCI-ACCREDITED HOSPITALS BY PHYSICIANS TRAINED IN US OR EUROPE
COST OF PROCEDURES IS MUCH LESS…SAVES THOUSANDS ON INSURANCE
TRAVEL TO EXOTIC LOCATIONS…CAN TAKE VACATION BEFORE OR AFTER TREATMENT
MANY PLANS NOT ONLY PAY ALL TRANSPORTATION, BUT ALSO OFFER $$ INCENTIVES
HAVING A SERIOUS HEALTH MATTER TREATED IN A “FOREIGN” ENVIRONMENT
DON’T KNOW THE PHYSICIAN BEFOREHAND
STAFF MAY NOT SPEAK ENGLISH VERY WELL
MAY NEED A LONG RECOUPERATION TIME BEFORE FLYING BACK HOME
COUNTRY MAY NOT ALLOW LAWSUITS IF NEGLIGENT TREATMENT OCCURS
GETTING GOOD AFTERCARE & REHABILITATION ONCE YOU RETURN HOME
PROCEDURESUS PriceCosta Rica
Heart Bypass Surgery$130,000$24,000
Heart Valve Replacement$160,000$15,000
(Tico Times Directory 2009)
Heart Bypass Surgery$120,000$10,000$10,000$18,500
Heart Valve Replacement$165,000$9,000$9,000$12,500
(Medical Tourism: Thailand 2009)
IS YOUR MEDICAL INSURER OR EMPLOYER WILLING TO SHARE SOME OF THE COST SAVINGS WITH YOU (… as an incentive) IF YOU OPT TO GO OVERSEAS FOR SURGERY?
Hospital Clinica Biblica Affiliated with Ochster Medical Institute - New Orleans
Apollo Hospitals Designated as a “Center of Excellence in Global Healthcare”
Wockhardt Hospitals Affiliated with Harvard Medical School
Panang Adventist Hospital Affiliated with Loma Linda University & Hospital
CIMA Hospitals Affiliated with CIMA hospitals in US
Grupo Christus Muguerza Affiliated with Christus Muguerza system in US
Gleneagles Hospital Affiliated with Johns Hopkins University & Hospital
Bumrungrad Hospital Designated a “Center for Excellence in Global Healthcare.” Has an American management team & 200+ US or UK doctors
The AMA advocates that employers and insurance companies that facilitate or incentivize medical care outside the U.S. adhere to the following principles:
SELF-FUNDED GLOBAL HEALTHCARE OPTION
INITIAL DIAGNOSIS PROVIDED BY AN IN-NETWORK PROVIDER
PATIENT MUST BE A GOOD CANDIDATE FOR TRAVEL
FOLLOW-UP CARE TO BE PROVIDED BY AN IN-NETWORK PROVIDER
COVERAGE COORDINATED THROUGH AN APPROVED MEDICAL TRAVEL AGENCY
DESTINATION MUST BE A JCI-ACCREDITED FACILITY
SERVICES MUST MEET THE COST-EFFECTIVE THRESHOLD (HOW MUCH WILL IT SAVE?)
BENEFITS TO THE PATIENT
UP TO A $10,000 EMPLOYEE INCENTIVE (TREATED AS TAXABLE INCOME)
TRAVEL PROVIDED FOR PATIENT AND COMPANION (PHYSICIAN, NURSE, OR FAMILY MEMBER)
ALL APPOINTMENTS, LODGING AND TRAVEL ARRANGED BY MEDICAL TRAVEL AGENT
TRAVEL FIRST-CLASS AND STAY IN NEAR-LUXURY FACILITIES
CAN VACATION IN AN EXOTIC LOCATION EITHER BEFORE OR AFTER PROCEDURE
MAKE THE TRAVEL BENEFIT A VOLUNTARY OPTION IF EMPLOYEES WANT IT
CAREFULLY SELECT THE MEDICAL TRAVEL AGENCY THAT WILL ARRANGE ALL APPROVED MEDICAL TRAVEL PLANS
IDENTIFY INTERNATIONAL PROVIDERS (Doctors and Hospitals) YOU TRUST AND LIST THEM AS “IN-NETWORK” PROVIDERS
PROVIDE A SIGNIFICANT INCENTIVE PAYMENT (Taxable) FOR ANY EMPLOYEE WHO TAKES ADVANTAGE OF THE MEDICAL TRAVEL OPTION
HAVE EMPLOYEES SIGN A LIABILITY WAIVER THAT PROTECTS THE COMPANY, INSURER, AND MEDICAL TRAVEL AGENCY
ARRANGE AND COORDINATE FOLLOW-UP CARE WITH IN-SYSTEM PROVIDERS WHEN PATIENT RETURNS HOME
JUST A FEW PARTICIPATING EMPLOYEES SHOULD SAVE THE EMPLOYER THOUSANDS OF $$$
MEAL & REST BREAKS
LUNCH BREAKSRelieved of all work duties? Scheduled to work 4+ hours?
REST BREAKSLess than 20 minutes?
EXPRESS MILK BREAKS
DAY ONLYSubtract normal commute time?
OVERNIGHTPaid only for travel time during normal working hours
OFF-PREMISESHow frequently called? How much time to respond?
Where can employee go? What can employee do?
PAY DOCKING & SUSPENSIONS
WHAT’S WRONG WITH DOCKING PAY?EXEMPT v. NON-EXEMPT?
Treating an exempt worker like a non-exempt worker – jeopardizes the exempt status of the job
A salary is a fixed amount… not dependent on time
As long as some work is done during the week… they’re entitled to the full salary
LEGAL OBLIGATION TO DEDUCT $$$ FROM PAYCHECKChild support, tax debts, alimony
COLLECT DEBTS THE WORKER OWES THE COMPANYRent, salary advances, cafeteria
Can’t deduct so much money that a worker’s pay falls below the required minimum wage
Only garnish the amount the court orders
PERSONAL INFO,HOURS WORKED EACH DAY AND WEEK, TOTAL WEEKLY EARNINGS
REGULAR PAY RATE, OVERTIME PAY EACH WEEK, TOTAL PAID EACH PAY PERIOD
Need records to prove to the Department of Labor that you’ve complied with the law
KEEP ALL RECORDS FOR AT LEAST THREE YEARS (…after termination)