Main Content

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. 

     


Top of page