When Is Employee Compensation Referred to as Variable Pay

question 71

Multiple Choice

When is employee compensation referred to as variable pay?

• A) when employee pay is linked to performance
• B) when employer costs vary with the incentives offered
• C) when employee pay varies with market pay
• D) when employee pay is comprised of varying components

---

Definitions:

Fair Labor Standards Act

U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Heavy Machinery Work

Tasks or jobs that involve operating large machinery often used in construction, manufacturing, or transportation.

Hazardous Occupations

Jobs or professions that expose workers to risks that could harm their health or safety.

Davis-Bacon Act

A federal law that requires the payment of prevailing wage rates to all laborers and mechanics working on public construction projects.