Compensation and Benefits Flashcards

What does the Fair Labor Standards Act (FLSA) establish regarding overtime pay?

Answer: Non-exempt employees must receive 1.5× their regular rate for hours over 40 per workweek

The FLSA requires covered employers to pay non-exempt employees at least 1.5 times their regular rate of pay for all hours worked beyond 40 in a single workweek.

What is a 'salary band' (also called a pay grade or range)?

Answer: A defined minimum and maximum compensation range for a job or job group

A salary band establishes the minimum, midpoint, and maximum pay for a job level, providing flexibility while ensuring internal equity.

What is the concept of 'total rewards' in compensation strategy?

Answer: The combination of base pay, incentives, benefits, work-life programs, and development opportunities

Total rewards encompasses everything of value the employer provides, including monetary compensation, health benefits, flexible work, recognition, and career development.

Which law governs the administration of private-sector employee benefit plans including health and retirement?

Answer: Employee Retirement Income Security Act (ERISA)

ERISA sets minimum standards for most voluntarily established private-sector pension and welfare benefit plans, including fiduciary duties and plan reporting requirements.

What is 'pay equity' analysis designed to identify?

Answer: Unjustified pay disparities between employees in similar roles based on gender, race, or other protected characteristics

Pay equity analysis statistically controls for legitimate factors (experience, performance, tenure) to detect unexplained pay gaps linked to protected characteristics.

What is a 'defined contribution' retirement plan?

Answer: A plan where the employer and/or employee contributes a set amount and investment risk is borne by the employee

In a defined contribution plan (e.g., 401(k)), the contribution amounts are specified but the eventual benefit depends on investment performance, shifting risk to the employee.