Open University Malaysia
The purpose of this assignment is to enhance learners’ ability to evaluate the factors that are important in the determination of salary and wage payment rates to employees of a selected organisation.
Select an organisation of your choice and evaluate the factors that are important in the determination of the salary and wage payment to the employees so that they will be protected and not oppressed by their employer. Then, discuss what would happen if the employer did not pay in accordance to the stipulated acts related to compensationand recommend methods employer can use in the determination of payment rate of salary and wages to their employees.
Name of the organization is AT&T. American Telephone and Telegraph Company the full form of (AT&T). AT&T Inc. is an American multinational telecommunications conglomerate. It has its headquarters at Whitacre Tower in downtown Dallas, Texas. AT&T is the world’s largest telecommunications company. The type of business they run is telecommunications. They provide telephone and broadband services in United States. The origin of AT&T is from the original Bell Telephone Company founded by Alexander Graham Bell after his invention of the telephone. A network of subsidiaries established by AT&T in the United States and Canada that held government authorized phone services monopoly, which formalized with the Kingsbury Commitment, in most of the twentieth century. This monopoly called as the Bell System. At that period, AT&T knew by the nickname Ma Bell. The former AT&T was the world’s largest phone company for a very long time. In 2016, the consolidated report of revenue of AT&T was $163.8 Billion.
The wages of the employees depends on the employee’s experience as well as their capability to serve the company. The factors on which the employee’s remuneration or wages are considered are the most important one is the ability of the company to pay the employees. It based on the demand and supply of the services and products of the company. The wages, which the company pays to the employees, also depends on the market rates. The cost of living of the place is also a factor on which the salary is decided. Wages can base on the trade unions that are if the trade union is higher than the wage rate also goes high. Productivity of a company is also a factor on which the salary of the employees based, as the productivity increases the salary of the workers also increases. (Schumacher Grigsby Vesey, 2015) Government regulations need consideration while deciding on the salary of the employees. For better lifestyle and higher living standards, the wage rate also varies from time to time. Sometimes the wage rates depend on the employees also, as if if the employee is over qualified then the employees decide their salary after negotiation with the company. Skilled and unskilled labors have their salary according to their skill. Hence, wages depends on an employee’s skill.
The second largest provider of mobile telephone services is AT&T; it also provides DSL Internet access and wireless service so, the employer's needed in the company will be highly skillful and will have better efficiency for this purpose the wage rate here is high. This company also provides fixed telephone services in the United States and provides broadband subscription television services through DirecTV. In Texas AT&T is the third largest company. The company’s main objective is to connect everyone to the world where everyone lives and work. AT&T vision and mission is to become the most admired and valuable company in the world. AT&T has a goal to improve customer’s individual lives and to construct their business more flourishing by conveying to the market exciting and valuable communications services, building shareowner importance in the process. The number of employees AT&T has each year from 2007 to 2016 is in 2011 AT&T had around 256,420 employees. In 2012 the number of employees dropped by around 15,000 to 241,241810.
The factors which determine and influence the determination of salary and wage rate In AT &T Company are as follows-
The wages rate of any employee is set by the employer at the time of joining the concern. Failing to pay wages is considered as a crime and certain laws support the termination of the employer in this regard. Payment of wages is set on certain dates by the state laws.
2. In case of withholding of wages of employees intentionally: AT & T can held liable if it fails to pay its employees on time and provide them with the basic benefits. AT&T is legally obligated in paying the wages to their employees. AT & T cannot withhold any portion of their employee’s salary without the consent of the employees. If any employee gets into any litigation with the company even then it cannot withhold the salary of the employee. The department of labor has the ability to bring back a private lawsuit to recover its wages (Conley,2014). The law states that any organization failing to pay wages to their employees on time is liable to get into litigation. AT & T on the other hand has to deliver all the required ailments to its employee within the stipulated time.
The employee can file a suit against AT&T in accordance to the failure of the payment of wages. AT & T may change its payday schedule without violating the FLSA rules about prompt payment of wages to employees only if it is made for a definite reason affecting its business. Paying wages to the employees by the employer is a duty failing which arises many consequences as the employee has the right to file a suit against the employer under the employment act. The compensation act ensures the wage payment of the employees who are injured during their job hours or disabled on the job. AT &T can be imposed with a huge amount of penalty if it fails to meet the employee's expectation from the organization.
3. In case of an Unpaid Overtime Compensation:
Fair Labor Standards act(FLSA) elaborately defined and standardized the ethical status of a employer and in prosecution of any violations will lead the company to undergo penal actions, even imprisonment. Employers of AT&T Inc. are liable to pay a substantial penalty amount or may lead to liquidated damages and shortfall if he violates the demonstration of overtime compensation or minimum wage. Employers are supposed to comply with the salary- and benefit related contracts in order to avoid both personal responsibility and FLSA violations. Distinctive features of workers and independent contractors have been illustrated in FLSA in order to avoid misclassification for the employers. Employees who have served the company for more than forty hours each week were supposed to be paid extra on separate paycheck basis with no overtime pay which is known as “other pay” in corporate terminology. Employers transcending this principle are liable to receive a permanent injunction along with charges of potential fines. It is very difficult but imperative for employer to determine the eligibility of an employee to go overtime since only them are liable to be paid an amount at least one-and-a-half times of their declared salary. Violation of this may enable an employee to lodge a personal litigation for payback and equivalent liquidated damages. In case of an intentional violation, with a mandatory three-year statute limitation, the employer is liable to suffer a criminal prosecution along with potential financial penalty (Jolls, C. 2013).
4. In case of conduct of audits:
Auditing of the financial reports of the company forms a very essential part of the in the verification and in getting the authenticity of the financial reports. It is important to conduct proper audit of the overtime wages and timekeeping policies of every organizations in order to maintain the fairness of the financial reports. If the company is not in compliance with this task, then in that case the organization will be liable to face certain legal consequences and it will tends to hamper the performance of the organization as whole (Schömann, I. 2014). Proper calculation of the working hours spent at the union shops should be rectified in order to maintain proper records of the financial reports. If proper records of the operations of the company not maintained then it may lead to significant material misstatements in the books of accounts. In the process audit, several steps are involved that includes checking of the overtime wages, leave salary, housing allowance, dearness, etc. any error in this line items in the financial reports of the organization may also leads to detection error which may hamper the financial status of the company. In this regards, proper reports are to be submitted to the auditors of the organization so that, he is abl4e to evaluate on the financial status of the organization. Leave encashment should be properly rectified and calculated before presenting in an audit report (Barrett, B. 2016).
The salary and wage rates in AT&T are determined through following methods:
There are different methods for the function of job evaluation is as follows -
In the light of this effort, a research study has been conducted regarding wage payment, protection and compensation management and this apparatus has been exploited on the backdrop of AT&T Inc which is the largest multinational telecommunication conglomerate. This research module has posed an extensive comparative study in order to evaluate the influential parameters which enables the company to determine the wages and salary. The research study has also set guidelines as to what steps can be taken by an employee in accordance to the violation of wage payment by At & T Inc. It prevails in a number of concerns as a result of which these concerns are getting into litigations. Prevailing wage management acts in United States has been thoroughly revised hereby and brief discussions of the immediate consequences driven by the violation of those acts have been included (Jolls,2013).The standards of Moreover, apprehensive recommendations in order to avoid the violation of the stipulated acts have also been encouraged.