A Problem with the Hay System of Compensating Workers Is

question 208

Multiple Choice

A problem with the Hay system of compensating workers is that:

• A) because it is relatively new, most workers and managers are unfamiliar with it.
• B) the EEOC has declared it illegal because it discriminates against older workers.
• C) it is difficult and expensive to administer because of the extensive paperwork needed to compute wages and salaries each pay period.
• D) it can lead to resentment because more productive employees may earn less than employees who do not perform as well but have worked for the company longer.

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Definitions:

Common Law

A body of legal rules that have been made by judges as they issue rulings on cases, as opposed to rules and laws made by the legislature or in official statutes.

Marine Law

A body of laws, conventions, and treaties that govern international private business and other matters involving ships, shipping, or offenses occurring on open water.

Equity Rules

Guidelines that govern legal proceedings to ensure fairness and justice, typically applied in cases where common law or statutory remedies are inadequate.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a comprehensive framework for international commerce.