Laws on HRM Total Rewards

• The human resources management has to follow regulations involving employees' total rewards. Typing hands image by huaxiadragon from Fotolia.com

  Human resource management, or HRM, uses "total rewards" as incentives for employees to encourage motivation for better job performance and to retain loyal employees. Total rewards are monetary or nonmonetary rewards that can consist of a variable pay given along with the base pay and with flexible and portable benefits. HRM also can offer multiple pay plans based on job, family, business and location. Any type of total reward benefits must abide by federal laws to ensure fair treatment between employees and maintain basic employee rights.

Employment Laws

• HRM must create total rewards systems that stay in compliance with regulations involving employment laws. Employment laws, such as the Civil Rights Act of 1991, ensures that employees, regardless of race, gender, religious belief and age, receive a fair and balanced total rewards benefits. The law prevents employees to be discriminated against in receiving rewards that are different from rewards given to employees working similar job positions, overtime hours and work performance.

Compensation Laws

• HRMs follow compensation laws involving minimum pay and overtime wages. The Fair Labor Standards Act regulates the total rewards for employees to reflect the standard wages they should receive along with being given extra pay for the overtime hours worked.

Labor Laws

• When an HRM operates a total rewards program, it must stay in compliance with labor laws when negotiating benefits. The National Labor Relations Act protects the rights of employees during collective bargaining, especially employees involved in unions, by allowing them to receive fair payment compensation from employers.