1) In setting up a pay structure, what legal requirements must an organization meet? Which of these do you think would be most challenging for a small start-up business? Why? 2

1) In setting up a pay structure, what legal requirements must an organization meet? Which of these do you think would be most challenging for a small start-up business? Why?

2. Why might an organization choose to pay employees more than the market rate? Why might it choose to pay less? What are the consequences of paying more or less than the market rate?

3. Why do some employers subsidize the pay of military reserve members called up to active duty? If the military instead paid these people the wage they command in the civilian market (that is, the salary they earn at their regular jobs), who would bear the cost? When neither the reserve members’ employers nor the military pays reserve members their civilian wage, reserve members and their families bear the cost. In your opinion, who should bear this cost—employers, taxpayers, or service members (or someone else)?