Legal Implications in Human Resources essay
It is known that today many organizations are facing serious changes that are generated by increased competition in the market, “mergers and acquisitions, shifting markets and changing employee demographics” (Chen & Hsieh, 2011, p.65). That is why in recent years, the philosophy of human resource management as well as organizational strategy have been changed. Today a considerable number of organizations including the manufacturing concerns and government agencies have already developed and successfully adopted absolutely new and nontraditional reward systems. Chen and Hsieh (2011) categorize these reward systems trends in six main dimensions: which include “basis, method, function, frequency, object and design” (p.66). There are a number of employment laws that are closely connected with total reward system and have enormous effect on the employees’ wages. The major goal of this paper is to discuss how laws affect the wages that employees are paid and if the employment laws interfere with or complement an employer’s goal of using pay plans to recruit, motivate and retain employees.
EMPLOYMENT LAWS AND THEIR EFFECT ON THE EMPLOYEES’ WAGES
Most employment laws in the United States affect the wages that employees are paid. For example, the Fair Labor Standards Act (or FLSA) is one of the employment laws that “prescribes standards for wages and overtime pay, which affect most private and public employment” (Summary of the Major Laws of the Department of Labor, 2011, para2). This act that is administered by the Wage and Hour Division requires all employers in the United States “to pay covered employees who are not otherwise exempt at least the federal minimum wage and overtime pay of one-and-one-half-times the regular rate of pay” (Summary of the Major Laws of the Department of Labor, 2011, para.2).
For maritime employees, the Longshore and Harbor Workers’ Compensation Act (or LHWCA), administered by the Office of Workers Compensation Program is of great importance. This act determines compensation and medical care to such maritime employees as longshore workers, any harbor workers, including a ship repairer, shipbuilder, and shipbreaker and to any qualified dependent survivors of those employees who are disabled or die because of injuries that occur on the United States navigable waters and in adjoining areas “customarily used in loading, unloading, repairing or building a vessel” (Summary of the Major Laws of the Department of Labor, 2011, para.3).
Under the Lilly Ledbetter Fair Pay Act those who are subjected to illegal pay discrimination have their right to a new 180 days to file whenever the decision on discriminatory pay is adopted. Under the Equal Pay Act of 1963, it is illegal for the employers in the United States to issue different pay rates that are based on gender. It means that this act has enormous impact on the wages, bonuses, overtime, vocation pay and other benefits that employees are paid in the United States. This act states that it is not allowed to lower wages of employees to make pay rates equal, and wages differences are allowed if they are based on seniority, merit and quality of work (Equal Pay Act of 1963, as amended, 2011, p.1).
The Davis-Bacon Act also affects the wages of employees because this act applies “to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works” (Davis-Bacon and Related Acts, 2011, para.1) . Under the Davis-Bacon Act, both the contractors and subcontractors who have business in the United States must pay their employees under the contract “no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area” (Davis-Bacon and Related Acts, 2011, para.1). Under the McNamara-O’Hara Service Contract Act, which has enormous impact on the wages of employees, general contractors and subcontractors are required to perform services on the prime contracts in excess of about $2,500 in order to pay their service employees no less than the wage rates as well as the fringe benefits that are considered to be prevailing in the locality determined by the U. S. Department of Labor, or the rates that are included in a collective bargaining agreement (McNamara-O-Hara Service Contract Act, 2011, para.1). Under the Walsh-Healey Public Contracts Act, administered by the Department of Labor’s Wage and Hour Division and Occupational Safety and Health Administration, the contractors of all the U.S. federal contracts that exceed $10,000 should comply with the minimum wage laws and safety standards regulations. It means that this act affects the employees’ wages. According to this law, the contractors in the United States should pay their employees at least the federal minimum wage that is determined by the Federal Labor Standards Act and the overtime pay (The Walsh-Healey Public Contracts Act, 2011, p.1).
THE ROLE OF EMPLOYMENT LAWS IN THE EMPLOYER’S GOAL TO USE SPECIAL PAY PLANS TO RECRUIT, MOTIVATE AND RETAIN THEIR EMPLOYEES
It is found that most employment laws complement the employers’ goal of using special pay plans to recruit, motivate and retain employees. These laws have a great impact on the pay plans for employees because they guarantee financial stability and job satisfaction of employees. For example, many employers turn to the so-called voluntary benefits which include “insurance plans such as long-term and short-term disability, life, critical-illness, dental, vision, cancer, and long-term care” (Atkinson, 2009, p.55). It means that they comply with the existing employment laws and want to add some more benefits to their employees. It is clear that such pay plans are effectively used to recruit, motivate and retain employees in today’s competitive environment. One more evidence of the significant role of the employment laws is that many employers offer compensation plans which are designed to protect the rights of employees. It is clear that all employers should be aware of the fact that their pay plans satisfy the requirements of the laws and regulations of the United States.
CONCLUSION
In conclusion, it is necessary to say that the employment laws discussed in this paper affect the employees’ compensation and provide those working conditions which are necessary for effective performance and increased productivity of employees in today’s competitive environment. The employees know that the will receive at least the federal minimum wage and overtime pay for their work, and they are confident about their future.
