1. HOSPITALITY HUMAN
RESOURCES MANAGEMENT AND
SUPERVISION

2. EMPLOYEE COMPENSATION AND BENEFITS
Chapter 9
EMPLOYEE COMPENSATION AND BENEFITS

3. 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

4. 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

5. 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

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

7. 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

8. 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

9. 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

10. 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