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In: Operations Management
Answer the following question below: 1. What are the legal issues with compensation?
Answer the following question below:
Solutions
Expert Solution
Legal issues with compensation are :
a. Pay discrimination and dissimilar jobs : In it the pay descrimination between the compensation provided to male and female employees are done while the compensation is dissimilar where it is provided as per senority, merit, quality etc. To avoid such issues various acts such as Equal pay act, Title VII of the civil rights act, 1964 etc are been implemented so that legal issues related to compensation can be avoided.
b. Earning gaps : Earning gaps can arise due to labor market differences, qualification differences, occupational differences, industry/firm differences etc where the employees are paid based upon their qualification, experience, performance, hour of work, skills etc. Like for example two employees working in similar industry can have earning gaps due to such factors hence the Fair Labor Standard Act of 1938 was implemented where the employees must be paid minimum wages, overtime while the child labors are prohibited from working.
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