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Wage and Salary Law

Information on laws regulating wages and salary including minimum wage, overtime, comp time, exempt vs. non-exempt employees, and more wage and salary rules and laws.
  1. Compensation Questions and Answers (42)

Comp Time
Rather than paying employees time and a half in overtime pay, a company which has a comp time policy gives paid time off from work.

Cost of Living Adjustment (COLA)
The cost of living adjustment (COLA) is the periodic (often annual) change in salary based on changes in a cost of living index, typically the Consumer Price Index (CPI).

Equal Pay Act
The Equal Pay Act of 1963 prohibits wage discrimination between female and male workers in the same establishment who perform jobs that require the same skills in similar working conditions.

Exempt Employee
Certain types of employees, who are classified as exempt employees, are not entitled to overtime pay as guaranteed by the Fair Labor Standards Act.

Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act (FLSA) provides for minimum standards for wages and overtime, and details how covered worktime must be compensated. The Fair Labor Standards Act also contains provisions related to child labor, and equal pay.

Fair Minimum Wage Act of 2013
Information on the Fair Minimum Wage Act of 2013 included what's included and how much minimum wage would increase if the legislation is passed.

Fair Pay Act
The Fair Pay Act (Lilly Ledbetter Fair Pay Act of 2009) is a law signed by Congress on Jan 29, 2009 that restored worker protections against pay discrimination.

How Overtime Pay is Calculated
All non-exempt employees who work over 40 hours during work week must be paid at a rate of one and one-half the employee's regular hourly rate.

Hourly vs. Salary Employees
Information on the difference between hourly and salaried employees, how each is paid, overtime and overtime exemptions.

Mandatory Overtime
Information on when an employer can require you to work mandatory overtime and how much you are entitled to be paid for the overtime hours you work.

Merit Pay
Merit pay is a pay increase based on goals or achievements set by an employer, rather than a pay rate based on a union contract or a defined pay scale for a position.

Minimum Wage
Minimum Wage - The current minimum wage, which employers are required to pay a minimum wage, and the federal and minimum wage for each state.

Non-Exempt Employee
Workers earning less than $23,660 per year ($455 per week) are guaranteed overtime protection and are considered non-exempt employees.

Workers earning less than $23,660 per year ($455 per week) are guaranteed overtime protection, however, there are exemptions to the overtime regulations.

Pay Cut Laws
Information on when and how much an employer can cut an employee's pay.

Paycheck Fairness Act
The Paycheck Fairness Act is a bill aimed at helping to close the wage gap between men and women. The bill would require employers to explain that any pay discrepancies between men and women are based on business requirements rather than gender.

Wage Garnishment
Wage garnishment occurs when an employer must withhold an employee's earnings to pay a debt as settled in a court order or other legal procedure (i.e. state tax collection, unpaid child support, or Internal Revenue Service (IRS)).

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