HOSPITALITY HUMAN RESOURCES MANAGEMENT AND SUPERVISION

EMPLOYEE COMPENSATION AND BENEFITS Chapter 9 EMPLOYEE COMPENSATION AND BENEFITS

Learning Objectives List and describe three federal laws that impact compensation policies and programs Explain the types of voluntary benefits that can be included in a compensation package Identify and describe three retirement and health benefit laws that impact voluntary benefits

Learning Objectives Describe five employee benefit programs that are mandated by federal laws Explain the procedures that help ensure the correct compensation will be paid to employees Explain the basic procedures that can be used to control labor costs

Legal Aspects of Compensation Programs must be administered legally and fairly Keep current on workplace laws Fair Labor Standards Act Minimum wage Tip Credits Overtime Compliance Actions Consumer Credit Protection Act Equal Pay Act

Employee Benefit Plans Types of benefits (Exhibit 9.3, pp. 274-275) Required by federal and state law Social Security Workers’ Compensation Unemployment Insurance Common voluntary benefits Uniforms Meals Healthcare Employee Assistance Programs Retirement

Retirement and Health Benefits Laws The Employee Retirement Income Security Act Protects employee pensions and healthcare plans Ensures benefits promised are there when needed Requires summary plan description and annual report The Consolidated Omnibus Budget Reconciliation Act (COBRA) Extends healthcare coverage at group rates due to loss of coverage (Exhibit 9.7, p. 281) The Health Insurance Portability and Accountability Act

Ensuring Mandatory Benefits “Through no fault of their own” Provides a reduced level of compensation based on specific eligibility requirements Based on federal law but administered by each state under state law State determines amount of benefit and for how long Must be able and available to work Eligibility- must have worked for employer for a certain time and be out of work for a certain time

Ensuring Accurate Compensation Payroll Administrators Checks on time Ensure correct applicable items deducted Ensure deductions paid to proper authority Payroll Systems Records and tracks work times Manual or automated Keeps records required by law Payroll Administration Options Can be outsourced Must ensure information submitted is correct

Controlling Labor Costs Set Pay Rates Analyze total labor needs Research wage rates Determine market position Control Overtime Careful planning Clear policies Schedules according to expected business volume Recognize times when it is needed