HOSPITALITY HUMAN
RESOURCES
MANAGEMENT AND
SUPERVISION
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Chapter 9
EMPLOYEE
COMPENSATION
AND BENEFITS
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Learning Objectives
1. List and describe three federal laws that
impact compensation policies and
programs
2. Explain the types of voluntary benefits that
can be included in a compensation package
3. Identify and describe three retirement and
health benefit laws that impact voluntary
benefits
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Learning Objectives
4. Describe five employee benefit programs
that are mandated by federal laws
5. Explain the procedures that help ensure
the correct compensation will be paid to
employees
6. Explain the basic procedures that can be
used to control labor costs
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Legal Aspects of Compensation
• Programs must be administered legally and fairly
• Keep current on workplace laws
• Fair Labor Standards Act
– Minimum wage
– Tip Credits
– Overtime
– Compliance Actions
• Consumer Credit Protection Act
• Equal Pay Act
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Employee Benefit Plans
• Types of benefits (Exhibit 9.3, pp. 274-275)
Required by federal and state law
– Social Security
– Workers’ Compensation
– Unemployment Insurance
Common voluntary benefits
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–
–
–
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Uniforms
Meals
Healthcare
Employee Assistance Programs
Retirement
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Retirement and Health Benefits Laws
• The Employee Retirement Income Security Act
– Protects employee pensions and healthcare plans
– Ensures benefits promised are there when needed
– Requires summary plan description and annual
report
• The Consolidated Omnibus Budget Reconciliation Act
(COBRA)
– Extends healthcare coverage at group rates due to
loss of coverage (Exhibit 9.7, p. 281)
• The Health Insurance Portability and Accountability
Act
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Ensuring Mandatory Benefits
• “Through no fault of their own”
• Provides a reduced level of compensation based on
specific eligibility requirements
• Based on federal law but administered by each
state under state law
• State determines amount of benefit and for how
long
• Must be able and available to work
• Eligibility- must have worked for employer for a
certain time and be out of work for a certain time
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Ensuring Accurate Compensation
• Payroll Administrators
• Checks on time
• Ensure correct applicable items deducted
• Ensure deductions paid to proper authority
• Payroll Systems
• Records and tracks work times
• Manual or automated
• Keeps records required by law
• Payroll Administration Options
• Can be outsourced
• Must ensure information submitted is correct
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.
Controlling Labor Costs
1. Set Pay Rates
• Analyze total labor needs
• Research wage rates
• Determine market position
2. Control Overtime
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•
•
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Careful planning
Clear policies
Schedules according to expected business volume
Recognize times when it is needed
Copyright © 2013 by The National Restaurant Association Educational Foundation. Published by Pearson. All rights reserved.