Organizational Objectives and Total Compensation in Different Markets
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Organizational Objectives and Total Compensation in Different Markets
LaShaunda Johnson
HRM/324 Total Compensation
University of Phoenix
Annette Clark-Davis
October 17, 2012
Compensation laws have been defined to create nondiscriminatory practices in compensation provided to employees within organizations the country. This paper will help in explaining a few of the laws and regulations, as well as with some of the similarities and differences influencing compensation for a biotechnology company and companies in other industries.
Compensation laws and regulations are approximately the same in most industries. However, in the case of an organization that operates in the biotechnology industry, special care concerning its compensation plan is required. This industry is believed to be involved in special hazards to health and security and is also inclusive of some revolutionary implications, moral, and ethical issues. Here are a few of the laws relating to compensation plan in the industry that helps in identifying the different aspects of pay.
The Fair Labor Standards Act is important because it involves legislations concerning the total compensation plan for the small business owners and companies. “This law involves five major compensation laws that administer minimum wage, equal pay, overtime pay, child labor, and record keeping requirements” (Cahn & Donald, 2010).
The Equal Pay Act (1963) is an amendment to the FLSA and restricts any kind of discrimination based on sex for men and women working at similar jobs and in the same workplace. “This law does not limit the seniority systems, merit systems, or the pay for performance systems in the companies” (Chan & Donald, 2010).
The Employee Retirement Income Security Act (1974) which regulates the pension plans along with the old age, survivors, disability, and health insurance program (OASDHI)” (Mejia & Werner, 2008). It also forms the basis for most of the other benefit plans like unemployment insurance, equal employment, workers compensation, social security, Medicare, etc.
Consumer Credit Protection Act of 1968 is a federal legislation that provides the individual borrowers with information concerning the garnishment of wages and loans.
Along with these, there are other laws and regulations as well that constitutes the total compensation plan of a firm.
In the aforementioned sections, laws concerning the total compensation were highlighted. Albeit the compensation laws of a biotechnology firm would be expected to be different than most industries there is still a great deal of similarities.
Biotechnology