1. Much of pay is based on equity or perceptions of equity.People compare themselves to others both inside and outside theorganization. These comparisons on both outcomes and inputs canresult in tension and dissatisfaction and then turnover. Can yougive examples of inequity that caused problems for yourself orothers? Try to use equity theory in your discussion if you can
2. The Fair Labor Standards Act deals with minimum wage, childlabor laws, and Overtime. The last administration wanted to allowmore overtime for more jobs (exempt versus non-exempt). The currentadministration is likely to change this so that there are fewerjobs of non-exempt status (can receive overtime). What do youthink? Second, minimum wage is an important topic and the questionis why isn't the minimum wage tied to inflation?
3. With job-based pay, there are a number of problems that canoccur. One example is compression when the market lifts thestarting pay for the job to approximately the same level as that ofworkers with more experience in the same job. The reason is thatprevious raises have not been large enough to offset the steep risein pay for that job in the market. The result is that experiencedworkers are making around the same pay as those with no tenure inthe job. Then there are other problems such as employees notreceiving wages for extra time spent on the job (wage theft). Haveyou seen compression or other compensation problems?
