| A | B |
|---|
| Comparable worth | The concept that male and female jobs that are dissimilar, but equal in terms of value or worth, should be paid the same. |
| Consumer price index (CPI) | Measure of the average change in prices over time in a fixed "market basket" of goods and services. |
| Escalator clauses | Provide for quarterly cost-of-living adjustments in wages, basing the adjustments upon changes in the CPI. |
| Exempt employees | Employees not covered by the overtime provisions of the Fair Labor Standards Act. |
| Factor comparison system | Job evaluation system that permits the evaluation process to be accomplished on a factor-by-factor basis. |
| Hay profile method | Job evaluation technique using three factors to evaluate executive and managerial positions. |
| Hourly work | Work paid on an hourly basis. |
| Job classification system | System of job evaluation by which jobs are classified and grouped according to a series of predetermined wage grades. |
| Job evaluation | Systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others. |
| Job ranking system | Simplest and oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth. |
| Nonexempt employees | Employees covered by the overtime provisions of the Fair Labor Standards Act. |
| Pay equity | An employee's perception that compensation received is equal to the value of the work performed. |
| Pay-for-performance standard | Standard by which managers tie compensation to employee effort and performance. |
| Pay grades | Groups of jobs within a particular class that are paid the same rate or rate range. |
| Piecework | Work paid according to the number of units produced. |
| Point system | Quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it. |
| Real wages | Wage increases larger than rises in the consumer price index, that is, the real earning power of wages. |
| Red circle rates | Payment rates above the maximum of the pay range. |
| Skill-based pay | Pay based on how many skills employees have or how many jobs they can perform. |
| Wage curve | Curve in a scattergram representing the relationship between relative worth of jobs and wage rates. |
