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Total Compensation and Benefits Strategy

Landslide Limousine would benefit from using the job based compensation model. The
companys compensation and benefit strategy should include customer satisfaction, experience
level, and position. The national average annual pay is $25,020, however the Texan average for
limousine drivers is $22,760 (Suttle, 2014). Thus the being pay rate for the drivers of Landslide
Limousine should be no lower than the Texan average. The experience level of employees will
determine the pay of the drivers. In addition, the more experience drivers gain and the higher the
level of customer satisfaction will help to determine the level of raise amounts.
Also a reward system sure as bonuses should be put into place to encourage employees to
to strive to be better than average. In 2013 Johnathan Lister stated,
A reward system should be easy for employees to understand and
attainable enough at its lower levels to encourage employees to work harder
to reach higher goals. A reward system with performance levels too high for
employees to reach early on in the process won't encourage harder work
because employees will simply ignore it.

Landslide Limousine Services plan is to employ 25 people thus they are not legally
obligated to provide benefits. Because they are in the red presently the company cannot afford
the expense of a benefits package. However, as the company increases its customer base and
revenue a benefits package may be need to increase employees.
Laws Related to Benefits and Pay Programs
The federal employment laws must be obeyed to avoid any penalties and/or lawsuits by
complainants. The first federal employment law to be considered regarding benefits and pay
programs is the Fair Labor Standards Act or FLSA. According to the standard,
It requires employers to pay covered employees who are not otherwise exempt at
least the federal minimum wage and overtime pay of one-and-one-half-times the
regular rate of pay,(Department of Labor, 2009).
Thus the minimum an hourly employee may be paid at this time is $7.25 and overtime pay
begins when the employee works more than 40 hours in a week. A law related to benefits is the
Texas Unemployment Compensation Act. Landslide Limousine is required by section 206 of this
law to carry unemployment compensation insurance through the Texas Workforce Commission
(TWC) (Texas Legislation, 1993). Once the company has applied for its business license it will
be given a workers compensation tax id number to file with the TWC. Finally the insurance
must be carried for a minimum of two years.

Suttle, R. (2014). Annual Salary for Limousine Driver. Retrieved from
Lister, J. (2013). Strategic Plan for Employee Compensation and Benefits. Retrieved from
Texas Legislation. (1993). Unemployment Compensation Act. Retrieved from
Department of Labor. (2009). Fair Labor Standards Act of 1938. Retrieved from