Compensation planning is a critical part of effective HR management. Money is important, not only because it matters from the perspective of attracting and retaining great people, but because doing it wrong can land you in a lot of hot water legally.
Seyfarth Shaw published an article highlighting the growth in wage and hour related lawsuits over the last seven years. The last thing any employer wants to do is end up in court, but without proper training in compensation planning, your risk may be higher than you think.
The Fair Labor Standards Act, one of many federal statutes which regulates wage and hour fairness, is only one of many laws that employers must comply with. From the minimum wage to complex legislation around executive compensation, there are a variety of statutes that ensure fairness, prevent fraud, and ensure that companies treat their employees equally.