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Merit pay, also known as pay-for-performance, is defined as a
raise in pay based on a set of criteria set by the employer. This usually
involves the employer conducting a review meeting with the employee to discuss
the employee's work performance during a certain time period. Merit pay is a
matter between an employer and an employee (or the employee's
representative).
The Fair Labor Standards
Act (FLSA) does not require or address the issue of merit pay.
Employment
and Training Administration Report: "Involving Employers in Training: Best
Practices"
Effective strategies and practices for training and
retraining the American workforce about operating high quality and effective
employer-based training programs. Instances where merit pay is given is
discussed here.
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