COMPENSATION ADMINISTRATION final essay

Topics: Employment, Minimum wage, Fair Labor Standards Act Pages: 3 (1415 words) Published: October 13, 2014
HUMR 427
FINAL EXAM ESSAY QUESTIONS
COMPENSATION ADMINISTRATION
1.) Exempt jobs are not subject to provisions of the FLSA with respect to minimum wage and overtime. Exempt employees include most executives, administrators, professionals, and outside sales representatives. Nonexempt employees are those who are subject to the provisions of the FLSA. To qualify for any of the preceding exemption categories, all of the pertaining tests must be met. Because of their duties, responsibilities, and salaries, employees in exempt jobs are not covered by the overtime provision of the FLSA. "Exempt" is not a title, but a legal classification based largely on job content. Exempt staffs are compensated on a salary basis without deductions for quality or quantity of work, except as permitted under the FLSA. Employees in nonexempt jobs are covered by the overtime provisions in the FLSA and must be paid overtime at one and a half times the regular rate for all hours worked over 40 per pay period. Most problems occur for employers when they have employees in exempt status that do not meet all the necessary requirements for exemption. This can result in lawsuits as seen with Merrill Lynch when they reached a $37 million settlement for not paying overtime to a nonexempt financial analyst that what classified under the administrative exemption. Employees experience a dock in pay when they are misclassified as exempt. They can be over worked and taken advantage of under the exempt status, even when they are rightly classified. Employers face an issue of poor quality of work when they have employees that are being worked long hours without overtime pay.

2.) Disparate treatment is the discrimination theory that outlaws the application of different standards to different classes of employees unless the standards can be shown to be business related. Title VII prohibits employers from treating applicants or employees differently because of their membership in a...
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