__________ are said to be paid at red circle rates.

Prepare for the HRM/324T Total Compensation Test with engaging flashcards and multiple-choice questions. Boost your understanding with explanations for each question and get exam-ready!

The term "red circle rates" refers to a situation where employees are compensated at a pay rate that exceeds the established market range for their position or job category. This typically occurs when an employee has been with the organization for a long time or has exceptional skills that justify a higher salary. As a result, their pay is "red-circled," meaning it cannot be increased further unless adjustments are made to the pay range itself.

New employees typically start at the lower end of the pay scale or within the established market range, thus they are not considered as being paid at red circle rates. Part-time workers and interns are often compensated at rates that align with their status and roles, which also do not apply to the concept of red circle rates, as it specifically concerns full-time salaries exceeding the market benchmark. Therefore, the designation of being paid at red circle rates clearly applies to employees whose pay is above the market range.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy