Compensation Management in a

Knowledge-Based World
Richard I. Henderson

LEGISLATION AND COMPENSATION

CHAPTER 5

Summarize by: DANAH ALSARHAN

Supervise by: Ms, SAJA ALAWDAH
LEGISLATION AND COMPENSATION CHAPTER 5 1

Fair Labor Standards Act (FLSA)

 A federal law governing minimum wage, overtime pay, equal pay for men and
women in the same types of jobs, child labour and record-keeping requirement.

Family and Medical Leave Act (FMLA)

 Entitles eligible employees to receive up to 12 weeks period of unpaid leave for

specified family or medical reasons such as caring for ill family members or
adopting a child.

Workers compensation

 An insurance program paid for by the employer designed to protect employees

from expenses incurred for a work related injury or disease. Each state has its
own workers' compensation law.

Unemployment insurance (UI)

 State administered programs that provide financial security for workers during
periods of joblessness. These plans are wholly financed by employees except in
Alabama, Alaska, New Jersey where provisions provide for relatively small
employee contributions.

Civil Rights Act

 Prohibits discrimination in terms and conditions of employment (including

benefits) that is based on race, color, religion, sex or national origin.

Equal Pay Act (EPA)

 An amendment to the Fair Labor Standards Act prohibiting pay differentials on

jobs, that are substantially equal in terms of skilled, efforts, responsibility and
working conditions except when they are the result of bona fide seniority, merit,
or production-based systems or any other job-related factor other than sex.

Equal Employment Opportunity Commission (EEOC)

 A commission of the federal government charged with enforcing the provision

of Civil Rights of Act of 1964 and EPA of 1963 as it pertains to sex discrimination
in pay.