SHOW ME The MONEY

Just how much do you know about how people get paid?

Salary

• A set amount of money earned by an employee per year or other fixed length of time

Paycheck

• Your total pay for a specific time period minus deductions and taxes

• Salaried employees usually can expect the same amount of pay each pay period

Wages

• Employee earnings that are paid by the hour, day, or item

• Piecework is work for which wages are based on the number of items of pieces produced

Commission

• A fixed percentage or amount of profit given to an employee in exchange for making a sale

• A bonus is a sum of money paid to an employee in addition to regular pay

Tips

• Money given to an employee by customers in exchange for a service

• Workers who receive tips often aren’t paid a significant hourly wage

Fair Labor Standards Act

• One of may federal laws regulating employment

• Set of standards governing employee payment and compensation (including minimum wage)

• Equal pay provision• Used to prevent

discrimination against women, minorities, and older workers

Minimum Wage

• The lowest hourly rate an employer may legally pay most workers.

• US = $5.85/hour• OH = $7.00/hour ($3.50 for tipped

employees) • Sub minimum wage can be

applied to full-time students, employees who are younger than 20, and employees who are developmentally disabled

Minimum Wage Increases• Ohio minimum wage changed

January 2008 and will adjust with the CPI

• US minimum wage is a phased increase:1997: $5.152007:$5.852008: $6.552009: $7.25

• The current US minimum wage is approximately $4.80 in 1997 dollars

Overtime• According to FLSA, for a job

that pays hourly wages, overtime is any work in excess of 40 hours per week

• Compensation is usually at least 1.5 times regular rate of pay

• Salaried workers do not receive overtime

Employment Classifications• Full-time: Employees hold

wage or salary jobs at least 35 hours per week, regardless of pay status

• Part-time: Less that 35 hours per week. May not receive benefits

• Temporary: Short-term assignments. May be paid by an employment agency

• Contract: Employees hired for a specific period of time for a specific purpose.

Benefits• Compensation other

than pay• Usually only available

to full-time employees• Insurance (health and

life)• Savings and retirement• Paid holidays,

vacation, maternity leave, education, adoption/childcare.

Vested

• After a certain length of service

• Allows employees access to employer contributions to savings and retirement accounts.