Although many businesses complain about minimum wage legislation,government requirements such as this actually have little or no direct effect on organizational compensation policies.

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Minimum wage legislation sets a legal minimum that employers must pay their employees. This does have a direct effect on organizational compensation policies, as employers must ensure that they are paying their employees at least the minimum wage. Failure to do so can result in penalties and legal action. However, while minimum wage legislation sets a floor for compensation, it does not dictate how much employers can or should pay their employees beyond that minimum. That decision remains with the individual organization.

Although Many Businesses Complain About Minimum Wage Legislation,government Requirements Such