Should the company make changes to salary for Gregory based on his hours worked, and why?

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!

Choosing to not make changes to Gregory's salary to avoid fines and overtime payment issues is valid in circumstances where an employee may be misclassified or if adjustments could inadvertently lead to noncompliance with labor laws. If Gregory is a non-exempt employee and has worked more hours than he is typically compensated for, failing to pay him correctly could lead to the company facing legal repercussions or fines related to overtime violations. The emphasis on maintaining adherence to regulations ensures that the company protects itself from potential liabilities and maintains fairness in compensation practices.

In general, the approach taken should reflect a combination of legal compliance and strategic compensation management, where adjustments revolve around both individual performance as well as adherence to employment standards.

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