Are there any government laws that regulate an organizations compensation policies and programs?
A. Yes. There are both state and federal laws or statutes that regulate an organization’s compensation policies and programs. The most important single piece of legislation is the Fair Labor Standards Act. The U.S. Congress passed this legislation in 1938. This law established for some jobs a minimum wage, the payment of overtime and the need for employers to keep certain records. Congress wanted to ensure that the employers would not take unfair advantage of their employees, as some employers had during the Great Depression.
