Organizational Objectives and Total Compensation in Different Markets Compensation laws are created to protect employees within an organization. Unsure of legal obligations in designing a total compensation plan, a client needs an explanation on how certain laws and regulations affect total compensation in their organization. The client’s organization employs 200 people, is a federal contractor, and operates in the biotech industry.
Laws and Regulations The compensation laws and regulations are almost the same in all industries. In the case of a company that works in the biotech industry, special care concerning the compensation plan is required. This is because of the fact that this industry is believed to be involved in special hazards to health and security and is also inclusive of some revolutionary implications, moral, and ethical issues.
The following are some of the laws relating to compensation plan in the industry that helps in identifying the different aspects of pay:
A) The Fair Labor Standards Act (FLSA): It is one of the most important legislations concerning the total compensation plan for the small business owners and companies. It involves five major compensation laws that administer minimum wage, equal pay, overtime pay, child labor, and record keeping requirements (Martocchio, 2009).
B) The Equal Pay Act (1963): This law is an amendment to the FLSA and restricts any kind of discrimination based on sex for men and women working at similar jobs and in the same workplace. This law does not restrict on the seniority systems, merit systems, or the pay for performance systems in the companies (Martocchio, 2009).
C) The Employee Retirement Income Security Act (1974): This law concerns regulating the pension plans along with the Old Age, Survivors, Disability, and Health Insurance Program (OASDHI). It also forms the basis for most of the other