Employee Compensation Programs Essay

1457 words - 6 pages

Benefits have most definitely changed throughout the past years. According to Compensation, during 1880 people worked approximately 14 hours every single day except on Sundays and would only receive a raise if they stayed with the company for five years and if the company prospered during that time (Gerhart, 2011, p. 414). Over the next couple of years, employees began seeing work hours change from 60-64 hours per week to 54 hours by the year 1930. Eventually, employees were able to have holidays off to enjoy with families, but they still did not receive pay for those off days, though. Today's society seems to have it made compared to those times; many companies offer education reimbursement, employee training, child-care services, and retirement benefits just to name a few (Gerhart, 2011, p. 415). According to PayScale, the most popular benefits in the manufacturing industry is 401(k) coming in at number one, paid holidays and vacation at number two, life insurance, paid sick leave, company pension plan, casual dress/atmosphere, and education and training reimbursement (PayScale, Inc., 2011).
While many companies offer extra benefits to keep its employees motivated, there are still a few government mandated laws that are required to be given to the employee by the company. These benefits include social security, unemployment insurance, workers' compensation, family and medical leave, and COBRA (elinfonet.com, LLC, 2011). Workers' compensation deals with job related injuries and illnesses. This compensation benefit allows employees to receive cash benefits, rehabilitation, and medical care while he or she is not able to work (elinfonet.com, LLC, 2011, ¶ 2). According to the Social Security Act of 1935, employees that lose their job through no fault of their own are able to receive fifty to eighty percent of their normal pay for up to twenty-six weeks. Only employees that were let go because of no fault of their own will be able to receive this benefit; employees that were terminated are not allowed to collect their pay. Another mandated benefit would include social security. This benefit helps employees receive income after retirement or if permanent disability occurs before then. While working, the employee will pay a certain percentage from their income for these benefits for a certain amount of time. Then, once retired, he or she will receive this money monthly. COBRA, or Consolidated Omnibus Budget Reconciliation Act of 1986, is a benefit that requires employers that have 20 or more employees working to continue health care coverage to discharged employees. This benefit does have a few limitations; church employees, federal government, and those terminated because of misconduct are excluded from this benefit (elinfonet.com, LLC, 2011, ¶ 5). Family and medical leave, another government mandated benefit, allows employees who work for a company with 50 or more employees to be given up to 12 weeks unpaid leave for particular family or medical...

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