Salary Structure Definition

Term Definition
This is the method by which all employee salaries are established and carried out within a business organization, based upon the credentials of each employee and current market values.

Extended Definition
Many small businesses have a salary structure that is acceptable for specific positions according to the seniority of the position as well as the education, experience, and talent of each candidate or employee. Salary structures must comply with the Fair Labor Standards Act, which includes provisions for fair payment of wages.

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How to Set Salaries