4 Types of Compensation You May Be Owed from Your Company

When a person is employed by a company, they are almost always entitled to some sort of compensation from the employer according to employment laws. This usually takes the form of financial compensation, unless the employee is an unpaid intern. All other employees will typically be paid an hourly wage or salary. However, in addition to these wages, there are other forms of compensation that you may be owed by your company.

Varieties of Financial Compensation

Depending on your industry and type of employment, you may deserve compensation beyond your normal salary or wages. This could include the following types of compensation:

  • Overtime – When an employee works over the set number of hours required by their job, they could be entitled to overtime pay for any extra work performed. Typically this is any hours worked over 40 hours in one week for full time employees and should be paid at the rate of one and a half times the employee’s regular salary. Part time employees can also receive overtime pay if they exceed their regular number of hours. However, it is important to note that certain employees, based on their field or position, may be exempt from overtime pay.
  • Severance – While losing a job can be difficult in a number of ways, it is usually particularly financially burdensome for a person. However, many people who are laid off from their jobs are entitled to a severance package, in which they are given money, insurance, stock, or other benefits. These benefits can significantly help a person stay financially solvent while unemployed.
  • Commission – Many sales people receive the majority of their pay based on commission, or money they earn for making a sale.
  • Expenses – When an employee spends their own money on necessary work-related items or activities, these purchases are usually covered by the company as a work expense. This can include meals, flights, phones and phone plans, and transportation.

Although not every employee is entitled to each of the above types of compensation, those that are qualified should be faithfully and fairly compensated. While most employers pay their employees as they should, they are certain unscrupulous employers who fail to provide proper compensation to their employees. In such a situation, a person should not endure this treatment in silence, but rather should consider enlisting the support of a qualified employment lawyer in order to take legal action against their employer to fight for the compensation they are owed.

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