Untitled Flashcards Set

Job Structure

Establishes the relative pay for different jobs within the organization, reflecting differences in responsibilities and functions.

Pay Level

The average pay, including wages and bonuses, for a group of jobs within an organization.

Pay Structure

The framework that combines job structure and pay levels, guiding compensation policies.

Minimum Wage

The lowest hourly wage employers must pay, as mandated by federal or state laws.

Fair Labor Standards Act (FLSA)

A U.S. law governing minimum wage, overtime pay, and child labor protections.

Exempt Employees

Employees not entitled to overtime pay under the FLSA, typically in managerial or professional roles.

Nonexempt Employees

Employees covered by FLSA overtime pay requirements.

Benchmarking

Comparing an organization’s pay practices to those of competitors to ensure competitiveness.

Pay Transparency

The practice of openly sharing information about pay structures and policies.

Job Evaluation

A systematic process to assess the relative value of jobs to determine fair pay.

Hourly Wage

Pay based on the number of hours worked.

Piecework Rate

Payment tied to the quantity of items produced.

Salary

Fixed regular payment, often expressed annually, not dependent on hours worked.

Pay Policy Line

A graph showing the relationship between job value (points) and pay.

Pay Grades

Groups of jobs with similar value and pay ranges.

Pay Range

The spectrum of possible pay rates for a job or grade.

Pay Differential

Adjustments to pay to account for factors like location or working conditions.

Delayering

Reducing job levels within an organization to create broader job bands.

Skill-Based Pay Systems

Pay systems rewarding employees based on knowledge or skill levels.

Incentive Pay

Compensation tied to performance or specific outcomes.

Straight Piecework Plan

Pay strictly based on the number of units produced.

Differential Piece Rates

Higher pay rates for higher production levels.

Standard Hour Plan

Extra pay for completing work in less than standard time.

Merit Pay

Pay increases based on performance appraisals.

Commissions

Incentive pay as a percentage of sales.

Gainsharing

Shared rewards for group productivity improvements.

Profit Sharing

A share of organizational profits distributed to employees.

Stock Options

The right to purchase company stock at a set price.

Employee Stock Ownership Plan (ESOP)

A program where employees receive company stock.

Employee Benefits

Non-wage compensation provided to employees, such as insurance or paid leave.

Social Security

A federal program providing retirement, disability, and survivor benefits.

Unemployment Insurance

Compensation for employees who lose their jobs, funded by employer payroll taxes.

Experience Rating

A measure of an employer’s history with unemployment claims, affecting their insurance tax rate.

Workers' Compensation

Insurance for work-related injuries or illnesses.

Family and Medical Leave Act (FMLA)

Provides unpaid, job-protected leave for family or medical reasons.

Patient Protection and Affordable Care Act

A law requiring large employers to offer health insurance or face penalties.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Allows continuation of health coverage after job loss.

Health Maintenance Organization (HMO)

A health plan requiring members to use specific providers.

Preferred Provider Organization (PPO)

A health plan offering flexibility in choosing healthcare providers.

Flexible Spending Account

Accounts allowing employees to use pre-tax dollars for healthcare or dependent care expenses.

High-Deductible Health Plans (HDHPs)

Health plans with lower premiums but higher deductibles.

Employee Wellness Program (EWP)

Initiatives encouraging healthy behaviors among employees.

Short-Term Disability Insurance

Benefits for temporary inability to work due to illness or injury.

Long-Term Disability Insurance

Coverage for extended periods of work inability.

Contributory Plan

A retirement plan funded by both employer and employee.

Noncontributory Plan

A retirement plan funded solely by the employer.

Defined-Benefit Plan

Guarantees a set retirement income based on salary and service.

Defined-Contribution Plan

A plan where employer contributions are defined, but benefits depend on investment performance.

Cash Balance Plan

A hybrid retirement plan with employer contributions earning a set interest.

Vesting Rights

Employee rights to employer-contributed funds in retirement plans.

Summary Plan Description (SPD)

A document explaining benefit plans to employees.

Cafeteria-Style Plan

A benefit program allowing employees to choose options that best suit their needs.