Organizational Ojectives and Total Compensation in Different Markets

Organizational Objectives and Total Compensation in Different Markets

Compensation laws are created to protect workers within organizations. Even though compensation laws are generally the same in most industries, the laws differ in the biotech industry because of the background of this industry—hazardous materials that could affect one’s health. As an HR consultant, one must understand how certain laws and regulations affect total compensation in different organizations, identify the similarities between companies in different markets, and identify the differences between companies in different markets as well.

Laws and Regulations

To begin with, the Fair Labor Standards Act (FLSA) is an important law pertaining to total compensation for organizations operating in the United States. FLSA covers issues such as minimum wages, equal and overtime pay, and child labor laws. According to Martocchio (2009), the federal government enacted income continuity, safety, and work hours laws (e.g., the Fair Labor Standards Act of 1938) to stabilize individuals’ incomes when they became unemployed because of poor business conditions or workplace injuries as well as to set pay minimums and work-hour limits for children (p. 19).

The Equal Pay Act (EPA) of 1963 is another law to consider when dealing with total compensation. EPA of 1963 protects employees against discrimination pertaining to pay on the basis of sex, race, or level of position.

In addition to the FLSA and EPA laws and regulations, the social security program is a vital part of compensation. Laws pertaining to old age, survivors, disability, and health insurance program are under the Employee Retirement Income Security Act of 1974. According to the United States Department of Labor (DOL), ERISA requires plans to provide participants with plan information including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan...