Question

Detail how an employee stock ownership plan (ESOP) is typically structured. How did US Supreme Court cases clarify sexual harassment law? List the specific traits accident prone people exhibit. The Equal Pay Act, an amendment to the Fair Labor Standards Act, states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work. Construct a scenario where a difference in pay is permissible.

Answer 1

1. ESOP or employee stock ownership plan is developed by employer as an incentive or benefit plan for the employees. When an employee is given ESOP in his benefits plan, the company spends funds from the employee welfare account and buys company’s shares in the employee’s name. The employee gets partial ownership in the company in the form of ESOPs.

2. Title VII of Civil Rights of 1964 highlights the impact of any kind of sexual harassment malpractices at the work place. Harassment of any kind of the employees is not justified and it is the duty of the employer to take stringent actions against the accused. Title VII of Civil Rights Act, 1964 plays a very important role in the workplace harassment or discrimination cases. Any kind of discrimination from employer on any kind of bias like sex, race, religion, sect, etc. is strictly prohibited under this Title. This serves as the basis for providing equal employment opportunities to all.

3. Specific traits which the accident prone people exhibit are as follows:

• Impulsivity
• Social maladjustment
• Carelessness or Negligence
• Aggression

4. The Equal Pay Act, 1963 was developed as an amendment to FLSA. This act was developed with the objective of abolishing any kind of wage disparity based on any kind of discrimination criteria like sex, age, nationality, etc.

A scenario where difference in pay is permissible and considered valid is the performance based compensation structure. . To develop a compensation system, which is internally equitable, the company must opt for a performance based compensation system. The performance based pay is based on the foundation concept of linking the compensation directly to the performance exhibited by the employees. The management conducts performance appraisals to evaluate the performance of the employees and rate them. The variable pay or bonus paid to the employee can be also linked to the rating acquired by the employee in the performance appraisal. This serves as a driving factor for the employees to work hard and get good compensation and benefits package. Keeping this in mind, the employee tries to perform his best, be proactive and tries to facilitate the work of his team.