Contextual Influences on
Compensation Practice
Chapter #3
 What does the term social good mean?
 Employers Goals
 Employees Goals
 Governments Goals
#48
The Law
The Constitution
 Article 1 Section 8
 Congress has power to
regulate trade
 First Amendment
 Freedom of speech
 Fifth Amendment
 No one shall be deprived
of life and liberty
 Thirteenth Amendment
 Freed slaves
 Fourteenth Amendment
 No state abridgement of
freedoms.
Three Branches
 Legislative branch
 Executive Branch
 Judicial Branch
Fair Labor Standards
Act of 1938 (FLSA)
 Minimum Wage
 Overtime Pay
 Child Labor protection
 Enforced by the US Department of Labor
 Class Exercise
 Look
www. FLSA.gov
 Find the most common mistakes that you have observed
in your experience
Fair Play Rules 2004
Portal to Portal Act 1947
 Defines the meaning of the terms “hours worked”
Review
from earlier classes
 Equal Pay Act 1963
 Compensable Factors
 Comparable Worth
 McNamara Service Contract Act
 Defines the word “contractor”
 Bennett Amendment
 Allows employees to charge employers with Title VII violations
 Pay Discrimination Civil Right Act
 Disparate Treatment
 Disparate Impact

Executive Order 11246
 Affirmative Action
More Review
#62
 Pregnancy Discrimination Act 1978
 American With Disabilities Act 1990
 Family Medical Leave Act 1993
 Davis Bacon Act 1931
 Walsh Healey Public Contracts Act 1936
Laws That Guide Discretionary
Employee Benefits #63
 Internal Revenue Code (Taxes)
 Federal Insurance Contributions Act (FICA)
 Federal Unemployment Tax Act (FUTA)
 Nondiscrimination rules
 Highly compensated employee rules
Contextual Influences on the Federal
Government as an Employer #67
 Executive Order 11478
 Prohibits discrimination; race4, color, religion, sex, etc/.
 Executive Order 11935
 Prohibits employment of non residence of USA in civil service
 The Rehabilitation Act
 The Viet Nam Veterans Readjustment Act
 Government Employee Rights Act
 Family and Medical Leave Act
Labor Unions As Contextual
Influences #68
 Reduced influence of National Labor Relations Act
 7.4 % in private sector
 Government workers 36.2 %
 15 million workers in all in US are in unions
 Right to Collective bargaining
 Spillover effect
 Concessionary Bargaining
•
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Market Influences
More Benefits Laws for Review
 Employee Income Retirement Act (ERISA)
 vesting
 Consolidated Omnibus Budget Reconciliation Act (COBRA)
 Health Insurance Portability Act (HIPPA)
 Pension Protection Act (PBGC)