Compensation
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FLSA/Minimum Wage Poster (Department of Labor) Form 941 Employers' Quarterly Federal Tax Return Instructions Revised April 2010 Form 941 Employers' Quarterly Federal Tax Return Revised April 2010 Form W-4 2009 Form W-4 2010 HIRE Act Form W-11 Employee Affidavit HIRE Act Payroll Tax Exemption Form W-11 Independent Contractor vs. Employee Comparison JOB DESCRIPTIONS: Model Job Description Template JOB DESCRIPTIONS: The Importance of Job Descriptions JOB DESCRIPTIONS: Tips and Techniques in Writing Job Descriptions Lilly Ledbetter Fair Pay Act New Jersey Minimum Wage Poster Overtime Pay Calculator PA Prohibition of Excessive Overtime in Healthcare Act Pennsylvania Minimum Wage Poster TIMESHEETS: Model Bi-Weekly Timesheet Form TIMESHEETS: Model Weekly Timesheet Form
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FAQ's
Introduction
An organization's compensation plan should be aligned with the strategic plan and culture of an organization. A carefully constructed compensation plan is
competitive and rewards employees, fair and equitable, and most importantly, within the regulations of the Fair Labor Standards Act (FLSA) administered by the Federal Department of
Labor. In addition to the federal regulations, every organization must research state laws that affect their business' compensation practices. A poorly constructed compensation
program may leave the employer liable to costly litigation, low morale and high employee turnover. Successful organizations have recognized the opportunity to improve the return on
their human resources investments by aligning pay plans with business strategies, which aids businesses in retaining top performers and attracting future talent to their
organization while maintaining a competitive posture in the marketplace.
What is meant by the terms ‘non-exempt’ and ‘exempt’?
An employee is exempt from the overtime provisions of the Fair Labor Standards Act when they are classified as an executive, professional, administrative or outside sales employee,
and meet the specific criteria for the exemption. In August of 2004, the Department of Labor made revisions to the FLSA that addresses exempt and non-exempt classifications
including specifications for certain computer employees. Exempt employees generally must be paid at least $455 per week on a salary basis.
An employee who is not exempt from the overtime provisions of the Fair Labor Standards Act is covered by the compensation provisions of the FLSA. Such an individual is entitled to
receive overtime for all hours worked beyond 40 in a workweek (as well as any state overtime provisions). Non-exempt employees may be paid on a salaried or hourly basis.
How do job descriptions fit into a compensation plan?
Job descriptions provide the basis for salary plans, job requirements, performance criteria and staffing strategies. Job descriptions are the foundation for building a fair and
equitable compensation plan. Up to date job descriptions that reflect accurate performance related information can be used to support (and defend) an employer's human resources
decisions. Job descriptions, at the minimum, should contain the following: a summary statement describing the overall purpose and objectives of the position, the essential and non
essential functions of the job, the minimum competencies required for job performance and the minimum qualifications to perform the job. Other items such as supervisory
responsibilities, working conditions and success factors may be included in job descriptions.
How is overtime calculated?
FLSA overtime rules require employers to pay non-exempt employees 1_ times their regular rate of pay for each hour (or fraction thereof) worked in excess of 40 hours in a given
workweek (excluding vacation, holiday and sick leave). Some states have additional laws regarding overtime pay. Also, there are regulations regarding how overtime should be paid to
employees working in different job classifications with different pay rates within the same workweek.
What are the FLSA timekeeping requirements for employers?
The FLSA requires employers to maintain accurate records of hours worked. The FLSA does not require employers to use time clocks, time cards, or any other time keeping system.
However, when a time keeping mechanism is used for nonexempt employees it should track the beginning and end of the work shift, uncompensated meal breaks, and uncompensated rest
periods (rest periods of longer duration than 20 minutes).
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