Employment Laws and HRM Strategy 1
Employment Laws and HRM Strategy
Research the employment laws in your state by visiting (your two-letter state designation).gov. (for example, az.gov; mi.gov.; or va.gov.). Insert “employment laws” into the Search area of the Website and review the different designations of employment laws that are listed. Benefits decreases for the entire employee population
Describe the scenario that you have selected and its corresponding employment laws.
The scenario I chose was benefits decrease for the entire employee population. The State I live in is Maryland and will be getting information from www.md.gov. There are many laws governing fringe benefits in Maryland. Fringe benefits includes minimum wage, overtime, meals and break, vacation, sick leave, severance, holidays, jury duty, medical/hospitalization coverage, dental coverage, pension/retirement plans. In the State of Maryland, all fringe benefits are not required so employers can select what to provide to employees. Maryland law requires the following benefits: minimum wage, overtime, and meals and break. Vacation, sick leave, severance, holidays, paid jury duty, medical/hospitalization coverage, dental coverage, and pension/retirement plans. There are many times when companies have to decrease benefits in order to keep the company in business. There are economic hardships going on right now which are causing jobs to shut down, lay off employees, or cut back. Minimum Wage:
Employment Laws and HRM Strategy 2
-The current minimum wage for Maryland is $7.25 and the Federal minimum wage is $7.25. Employers must follow the laws and pay employees a minimum of $7.25 when paying minimum wage. Overtime:
-The State of Maryland requires employers to pay 1 ½ time their regular rate when working 40 hours or more in a work week. Some employees may be exempt if salary workers. Meals and Breaks:
-The State of Maryland employees must provide breaks to people under the age of 18 with a 30 minute break for every 5 consecutive hours of work. Vacation:
-In the State of Maryland, employees are not required to provide vacation benefits, paid or unpaid. Sick Leave:
-Maryland law does not require employers to provide sick leave benefits, paid or unpaid. Severance:
-Maryland law doesn’t require severance but if an employer chooses to provide it, they must have an established policy or employment contract. Holidays:
Employment Laws and HRM Strategy 3
-In Maryland, an employer can require employees to work holidays and does not have to pay 1 ½ times the regular rate. They do not require employers to provide paid or unpaid holiday leave. Jury Duty:
-Employers may not discharge, penalize or threaten an employee who receives a jury summons and is not required to pay an employee for serving on a jury. Medical/hospitalization Coverage:
-Employers are not required to offer medical/hospitalization coverage. Dental Coverage:
-Employers are not required to offer dental coverage to employees. Pension/retirement plans:
-Employers are not required to provide pension/retirement plans to employees. (a) An employer shall give to each employee:
(1) at the time of hiring, notice of:
(i) the rate of pay of the employee;
(ii) the regular paydays that the employer sets; and
(iii) leave benefits;
Recommend a plan to manage the HRM situation within the confines of the law.
Employment Laws and HRM Strategy 4
In the State of Maryland, if the benefits decreased for the entire employee population, the laws wouldn’t be broken because many benefits are not required in Maryland. If the reduction of benefits is within the law guidelines, it is fine. “An organization chooses the cost leadership strategy when its decisions and actions focus on providing value by reducing cost. The goal of a business pursuing cost leadership is to become highly efficient, which will allow the organization to create value by producing goods and services at lower cost”...
References: Halbert, T., & Ingulli, E. (2009). Law & ethics in the business environment: 2010 custom edition (6th ed.). Mason, OH: South-Western Cengage Learning.
Stewart, G., & Brown, K. (2011). Human resource management (2nd ed.). Hoboken, NJ: John
Wiley and Sons.
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