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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.
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