Q: What is a compensable factor?  

Compensable factors define the criteria used to evaluate jobs. The company is willing to pay for these factors. Compensable factors are identified and defined based on the company's objectives and values. Each compensable factor is normally assigned a weight of importance. There are normally between 5 and 12 compensable factors. The Equal Pay Act of 1963 defined 4 generic compensable factors: skill, effort, responsibility and working conditions.

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