How Federal and State Regulation Impact Compensation

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How Federal and State Regulation Impact Compensation 2. In what ways do federal and state regulations impact compensation? As an employer, how will you stay current with these regulations?

State and federal regulations impact compensation in various ways, which include determining the minimum wage. The employer is obligated to adhere to the law, including on the lowest pay. Paying employee wages below the set standards is an offense and can lead to sanctions, legal action, and fines. The minimum wage rule is based on the fair compensation standards demanded by the state and federal laws in eliminating exploitation of laborers. ‘’

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State and federal regulations also affect job classes and their accompanying salaries, which an employer must observe during compensation. People in a certain job group should be paid a salary within a particular range (Newman, Gerhart, & Milkovich, 2019). The compensation structure has to take into account the qualifications of employees and their respective job groups to avoid possible discrimination in compensation.

Federal and state laws also determine what normal working hours are and what overtime is, affecting how employees are compensated. Overtime work must be compensated to avoid possible lawsuits. For instance, the Fair Labor Standards Act (FLSA) provides for criteria for eligibility for minimum wage, overtime page, and other benefits that should be taken care of in compensation Hogler, 2004). As an employer, one is compelled to observe the law to the letter.

Consequently, federal and state regulation affects overtime compensation.

As an employer, to stay in current regulations, I will ensure that my human resource policy is ever updated to agree with the federal and states regulations at any given time. I will keep tabs on developments in rules and regulations impacting employment and compensation.

Also, I will employ competent human resource management to ensure that my company is compliant with the law.

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References Hogler, R. L. (2004). Employment relations in the United States: Law, policy, and practice.

Thousand Oaks, Calif: Sage Publications.

Newman, J. M., Gerhart, B. A., & Milkovich, G. T. (2019). Compensation (13th ed.). New York: McGraw-Hill Education.