Effects of Laws on Employees Compensation

In: Business and Management

Submitted By josephmwangi95
Words 698
Pages 3
Effects of Laws on Employees Compensation
There are many things that affect employees’ compensation in an organization, some of which are external while others are internal to the organization. Those that are internal include the company’s culture and policies while the external are labor and market. I will look at three laws that affect employees’ compensation in an organization which are affirmative act, Age Discrimination in Employment Act and FLSA coverage laws (Ghosal, 2011).
FLSA which is the fair labor standards act is concerned about the standards for overtime and regular payment of wages. This act is enacted by the wage and hour Division and affects both private and public employment. This act requires the employers to pay the employees who have been covered regular minimum wages as per the minimum wages act and overtime pay which should be one and one and half that of regular rates. For all non agricultural organization it restricts the hours that children who are under the age of 16 should work and also restricts employment of children under the age of 18 to certain jobs which may be dangerous. In case it is an agriculture based company, children under the age of 16 should not work during the school hours (Kearns, Borgen, & American Bar Association, 2010).
In order for the company to follow this act, the following practices are being put into action. The organization is ensuring that every employee gets minimum wages as dictated by the minimum wages act. The minimum wages for an employee should be $7.25 per an hour as per the federal minimum wage requirements. No children under the age of 16 are allowed to work in the organization. The organization has managed to keep records of its employees which includes employees full name, address or zip code, sex, date of birth, hours worked per day, regular hourly rate, and total time worked either daily or…...

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