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Lesson 02: Contextual Influences
Other Significant Compensation Related Laws
Throughout Chapter 2 of the Martocchio text there are other significant laws that impact how compensation is managed by organizations. These laws include:
- Davis-Bacon Act of 1931 – established employment standards for construction
contractors holding federal government contracts valued at more than $2,000
and establishes the concept of “prevailing wage” for laborers and mechanics
working on federal government contracts. - Walsh-Healy Act of 1936 – requires contractors (construction and nonconstruction)
and manufacturers who sell supplies, materials, and equipment to
the federal government to observe minimum wage and overtime provisions of the
FLSA. Establishes overtime pay for hours worked by contractor employees in
excess of 8 hours per day or 40 hours per week, and sets the minimum wage
equal to the prevailing wage. - Equal Pay Act of 1963 – prohibits sex discrimination in pay for employees
performing equal work. - Civil Rights Act of 1964 – Title VII of the Act promotes equal employment
opportunities for underrepresented minorities and addresses unlawful
employment practices including discrimination in compensation. This Title
introduced the concepts of “disparate treatment” and “disparate impact.” - Bennett Amendment to Title VII – 1963, allows female employees to charge
employers with Title VII violations regarding pay only when the employer violated
the Equal Pay Act of 1963. - Age Discrimination in Employment Act of 1967 (ADEA) – provides protection for
workers age 40 and older from illegal discrimination, including reduction in wage
rate. - Civil Rights Act of 1991 – overturns several Supreme Court rulings pertaining to
seniority systems and addresses the geographic scope to include U.S. citizens
working for U.S. companies overseas. - Americans With Disabilities Act of 1990 – this Act includes a provision against
discrimination in compensation for “qualified individuals with a disability.” - Lilly Ledbetter Fair Pay Act of 2009 – this Act restores the law pertaining to filing
time for pay discrimination claims and supports the effort to close the gap
between men and women pay. - Paycheck Fairness Act (2013) - is proposed legislation that would add
procedural protections to the Equal Pay Act of 1963 and the Fair Labor
Standards Act as part of an effort to address male–female income disparity in the
United States. This Act would prohibit employers from retaliating against
employees who share salary information with their co-workers. - Working Families Flexibility Act (2013) – is proposed legislation that would
amend the FLSA by allowing private-sector employers to offer employees the
option of taking “comp time” in lieu of overtime pay. This is to help address family
and work needs. Note: this something that federal workers have been allowed to
do since 1985.