A company’s competitiveness faces many challenges. The contextual influence that I believe to pose greatest challenge to companies’ competitiveness is the federal protective legislation.
Prior to the 1930s, employees did not possess the right to negotiate with their employers over terms and conditions of employment. But now employment legislation acts protect workers’ right and status. Employers expect workers to be as productive as possible and produce the highest quality of products and services. Employees want their financial security, safety, better benefits, and suitable working condition. Employers have to watch over these factors. They can’t only concentrate on profit maximization but they also have to protect employee rights.
Fair Labor Standards Acts of 1938 deal with minimum wage, overtime pay, and child labor provision. Equal Pay Act of 1963 is a remedy of employment discrimination. This act based on a simple principle: man and women should receive equal pay for equal work. Title VII of the Civil Right Act is the most pertinent to compensation. Age Discrimination in Employment Act, Pregnancy Discrimination Act, Americans with Disability Act of 1990, Family and Medical Leave Act of 1993, Internal Revenue Act, Employee Retirement Income Security Act of 1974, Health Insurance Portability and Accountability Act of 1996, Pension Protection Act of 2006 are some other legislative acts which protect employee rights. Before these laws were passed employers didn’t care about the employees’ welfare. They use their employees like machine for only maximize their profits. Employees used to work long hours, get injured, discriminated, didn’t get any benefit and they received a very lower level of