Compensation Management

Three positions where wages are paid in terms of an annual salary are Doctor, Clinical Program Director, and High School Principle. They are salary employees because they are in the professional field. They usually have subordinates under them. Their pay is calculated annually or monthly. There jobs are classified as professional and their salary is determined by their experiences in the job. Salaried employees come with a higher status; have higher overall earnings and more responsibility and more potential for job growth. There is a great deal of professionalism amongst salaried employees, a dedication to goal oriented work rather than time oriented. Professionals are considered to be more of a prestigious job, hence the term white collar.

Three positions that pay hourly rates are a clerk, auto mechanic, and a roofer. These positions pay hourly because they are recognized under the Fair Labor Standard Act as non exempt workers, therefore they must be compensated for any hours after 40 hours with overtime pay and they are not considered under the scope of professionals or executives that would constitute a higher pay or greater job responsibilities.

The law that regulates the determination of the form of compensation is the Fair Labor Standard Act of 1938. The legal requirements for a position that pay a salary is that an employee must meet the salary level tests and also the salary basis test and is only exempt if he or she also performs exempt job duties. The Fair Labor Standard Act exemptions are limited to employees who perform high level work. For example if the employee regularly supervised two or more other employees, and also has management as the primary duty of the position, and also has some genuine input into the job status of other employees such as hiring, firing , promotions, or assignments. This constitutes that they are considered salaried employees according to the Fair Labor Standard Act.

In my opinion I feel that this law was...