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The Fair Labor Standards Act (FLSA) does not require performance evaluations. Performance evaluations are generally a matter of agreement between an employer and employee (or the employee's representative).
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Performance evaluations are not mandatory, according to the U.S. Department of Labor. They are a matter between you and your employees or your employees' representative. Performance evaluations help you to determine merit increases and come up with employee development strategies.
Performance appraisals can be highly useful in the talent management process and can help ensure that employers are doing their best to retain high-performing employees.
An employee evaluation is a planned performance review by a supervisor. In a typical employee performance evaluation, they'll discuss expectations that have been exceeded, met, and fallen short during a previous time period.
No law requires companies to conduct job reviews, but businesses that do may have a better understanding of their employees. The information gained from performance reviews can be used to determine raises, succession plans and employee-development strategies.
An employer must thereafter evaluate the productivity of each worker with a disability who is paid an hourly commensurate wage rate at least every 6 months, or whenever there is a change in the methods or materials used or the worker changes jobs.
Under federal law, it's illegal to discriminate against a worker on the basis of age (over 40), disability, race, nationality, gender, religion or pregnancy status. Many states add additional categories to this list, too.
Supervisors are to complete the performance evaluation of the employee and evaluate the employee's performance in meeting the goals with one of the following ratings: Exceptional. Exceeds Expectations.
Traditionally, appraisals have come from the top down. Generally the employee's supervisor leads the appraisal process. Other people the human resources manager, coworkers, customers may also be involved.