Following the guidelines of the course ID guidelinesStudent’s NameUniversity
Total compensation can be defined as an extensive depiction of the process utilized by organizational employers to compensate the human resources in return for their services. There are mainly two aspects of total compensation package intended towards the employees such as intrinsic and extrinsic compensation. In the case of intrinsic compensation, the employees have been provided essential work facilities such as management feedback and specific work responsibility (Tomasko, 2013). On the other hand, extrinsic compensation includes the legal terms and monetary procedures of paying a human resource attached to the organization.
In this paper, a discussion has been made about the laws and legal regulations affecting total compensation packages of an organization that operates in the biotech industry. Meanwhile, the company is a federal contractor with a workforce of 200 people. The total compensation packages have been meant to be utilized to attain the responsible human resources. However, many of the organizational employers have illegally utilized their workforces providing a minimal wage (Weldon, 2012). Therefore, significant laws and regulations have been developed to secure total compensation packages of the human resources.
Laws and Regulations and Different Compensation Plan
In order to protect the total compensation packages of employees, the government has developed some laws mentioned below.
The Fair Standards Act of 1938 (FLSA)
The Equal Pay Act of 1963
The Civil Rights Act of 1964
The Davis-Bacon Act
The Family and Medical Leave Act of 1993
The Fair Standards Act of 1938 (FLSA) had created a significant impact on the procedure of providing total compensation packages to the employees. According to FLSA, the employees must be paid a minimum wage for their services. Moreover, in the case of overtime, a limited period and wage system have been set (Mutari, 2010). Also, the act defines how the minors can be employed. Equal Pay Act of 1963 stated that recruiters must pay equally to men and women employees. Thus, both men and female workers can be eligible to get total compensation packages. In addition to that, the Civil Rights Act of 1964 explicitly mentioned that employers must not discriminate any person due to national origin, race, religion or color. The act also includes some vital areas in the workplace management such as recruiting process, promotion prospects and review of human resources. The Civil Rights Act of 1964 stands tall for every human personal attached to the society irrespective of anything.
Creating a total compensation plan for the employees can be difficult at sometimes. As there is a different type of laws and regulations attached to a different industry, the approaches of the employers must be different. In the case of recruiting a federally contracted human resource in the biotech business, certain individual laws must be taken into consideration. For instance, in the biotech industry, every human resource must be protected from discrimination. As workers in the industry have worked in different conditions, the Davis-Bacon Act recommends fair salary to be paid to the human resources (Mutari, 2010). Moreover, according to FLSA, the employees must be provided overtime charges as specified in the law. Also, the Family and Medical Leave Act of 1993 states that an organization with 50 or more human resources must provide medical emergency leaves to the employees. In order to develop a total compensation plan for an organization dealing with biotech industry must understand the above-described legalities must be followed. The laws and legislations should be implemented to level the position of employers and workers attached to industry so that the employers can take straightforward procedure in hiring process (Grant, 2006). Most essentially, the laws and regulations have created a competitive edge in recruitment and employee retaining process protecting the rights of the organizational employees.
References
Grant, D. (2006). Total Compensation Management. Compensation & Benefits Review, 18(2), 62-67. http://dx.doi.org/10.1177/088636878601800207
Mutari, E. (2010). The Fair Labor Standards Act of 1938 and Competing Visions of the Living Wage.Review Of Radical Political Economics, 32(3), 408-416. http://dx.doi.org/10.1177/048661340003200306
Tomasko, R. (2013). Focusing Company Reward Systems to Help Achieve Business Objectives.Compensation & Benefits Review, 15(1), 62-65. http://dx.doi.org/10.1177/088636878301500107
Weldon, D. (2012). Linking Total Compensation to Performance. Compensation & Benefits Review,44(3), 149-153. http://dx.doi.org/10.1177/0886368712459843
