CST Publications- Oregon
Case Study:
Employee compensation is important to the employer and employee alike. Agreeing to a competitive and equitable salary for one employee may mean a lower salary but outstanding health benefits, and a moderate salary with a liberal tuition reimbursement plan for anther. As the HR manager, you should be aware of the wide range of employee compensation and rewards in addition to the compensation practices in effect in your market area.
In addition to developing the optimum compensation strategy for a company, an HR manager must be knowledgeable about the laws (both federal and state) that govern how employers pay their employees.
Scenarios are worth 25 points.
CST Publications is a fledgling print-on-demand book publisher located in the Pacific Northwest, just inside the Oregon border. It currently employs 32 people, including editors, marketing staff, IT, and office support staff. The business has been growing and you have been hired as the HR manager. Susan Compton, the company’s CEO, has asked you to review CST’s current compensation practices to ensure compliance with federal and state laws. Research the following issues and summarize your findings in a report to Ms. Compton.
Scenario 1. Some of CST’s employees are classified as exempt and others as nonexempt. Find out what these terms mean and how the decision about how the employee is categorized is made. According to the guidelines, are your marketing associates, who are paid on a commission basis, considered exempt or nonexempt employees? Please explain.
Scenario 2. Many of CST’s employees work part time. The graphic design staff especially is made up of friends of Ms. Compton who have worked with her on a part-time, informal basis. Many of the designers have other full-time jobs. Conduct research to determine the laws and regulations affecting part-time employees.
Scenario 3. The marketing and sales personnel have asked about CST’s cost-of-living adjustment (COLA) policy. They have been with the company for close to 10 months. Conduct research to determine what COLAs are based on. Then research the most recent Consumer Price Index (CPI). How does the Northwest compare to the national CPI? Based on your research, what will you propose for CST’s policy?
Scenario 4. Now that you have addressed the issue of govern
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