Merit Pay


Merit pay, which is also called pay-for-performance, is defined as a raise in pay based on a set of criteria set by the employer. This usually involves the employer conducting an employee review and discussing the employee's work performance during a certain time period with the employee. Merit pay is a matter between an employee and an employer or the employee's representative.

The Fair Labor Standards Act (FLSA) does not address the issue of merit pay.

 





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