HRM6010 – Total Compensation
Submitted by
Prapatsorn Ratanasait
Presented to
October 28, 2014
College of Professional Studies
Northeastern University
Research the Equal Pay Act of 1963: why is it important to know this law when designing the internal alignment piece of your compensation program?
The Equal Pay Act (EPA) means men and women receive the same amount of payment for doing the same work, which it will be illegal if employers pay women less than men or for men who get less paid than women for the same work. This Act was passed in 1963 as a revision to the Fair Labor Standards Act (FLSA). Most of complainant was women, which they always recieved less than men. I think this is unfair and against sex discrimination. Therefore, it is very important to understand this law for every organizations.
According to Milkovich and Newman’s textbook, “Internal alignment, refers to the pay relationships among different job, skills, competencies within a single organization.” (p. 11). Even though there is the internal alignment of compensation program, it could not guarantee that sex discrimination will not be happen. Thus, to know this law is very important for everyone. Employees have their right to earn equal pay for equal work. This law is for protecting both men and women from sex discrimination in pay rates. Meanwhile, it is also important for employers which they have to be careful when they use internal alignment as a policy. It is because employees may not understand why they earn less income comparing with people who work as the same job. As the Internal alignment means employees will be paid based on their performance, so the important aspect of this policy is “to be fairness”. It can be included pay differences based on productivity, job responsibilities, and work output. Furthermore, the Equal Pay Act requires that employer have to pay employees at the same rate, but it does not require that employer will pay the same
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