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TAKE-HOME PAY. Typically, earnings for a payroll period, less required deductions. Represents net earnings. (See SPENDABLE EARNINGS.)


TARGET. In incentive systems, a rate or standard is set with the objective of making it possible for a worker or a group of workers to earn a specific percentage above the base rate. The expected earnings to which an incentive standard (including a piece work rate) is geared.

TASK. The standard quantity of production expected under normal conditions. Usually designated as the point above which incentive pay is earned under a wage incentive plan.

TASK AND BONUS PLAN. An incentive plan wherein a set compensation amount is given an employee for output above a predetermined level or task.

TAX CREDIT ESOP. A plan designed to meet conditions specified by the Economic Tax Recovery Act of 1981, permitting employers tax credits for the value of the stock.

TAX REFORM ACT STOCK OWNERSHIP PLAN (TRASOP). A special ESOP that came into existence with the Tax Reform Act of 1976. This act grants businesses the right to recover a specified amount of “start-up” and administrative costs. Employees have full and immediate vesting to all shares placed in their accounts.

TAX EQUITY AND FISCAL RESPONSIBILITY ACT, 1982 (TEFRA). A comprehensive tax law which imposed greater restrictions on employee benefit plans.

TAX SHELTER. A device for restructuring compensation, or investments, with the principal objective of avoiding current taxes and postponing payment of such taxes. For compensation purposes, usually refers to a plan for postponing declaration of earnings for tax purposes to a future period of time when tax rate for an individual is expected to be lower. (See ERTA)

TEAM MANNING. The establishment of a group of workers to operate a particular machine or assembly line or to complete a particular task.

TECHNOLOGICAL UNEMPLOYMENT. Displacement of workers caused by or attributed to the installation of labor-saving methods or machines.

TEFRA. The Tax Equity and Fiscal Responsibility Act of 1982, sharply cut the maximum pension benefit and contribution limits for qualified pension plans.

TEMPORARY DISABILITY INSURANCE. Provision presently enacted into law in certain states providing payments for a limited period of time to workers suffering loss of wages due to sickness or disability incurred off the job. In some states, employers may substitute privately insured coverage meeting certain standards. (See WORKER’S COMPENSATION, ACCIDENT AND SICKNESS BENEFITS.)

TEMPORARY EMPLOYEE. An employ hired for a specific job on a temporary basis. The “temporary” status is often used to better evaluate a prospective employ prior to granting a permanent status. (See PROBATIONARY PERIOD).

TEMPORARY RATE. A rate or standard set tentatively on new or changed work. When new or changed work is started under an incentive plan, it is often not known whether or not correct rates or standards can be properly set for the tasks involved, temporary rates are established. These rates are later revised and are made permanent when found to be satisfactory. Sometimes they are called “experimental” or “trial” rates. (See GUARANTEED RATE, PROTEST PRICE.)


TERMINATION. Separation from an organization due to resignation, layoff, retirement, or dismissal for cause (stealing, insubordination, incompetence, etc.)


THEORY X. Based on the assumption that workers dislike work, wish to avoid responsibility, like to be told what to do, lack ambition, and show little concern or loyalty toward their organization. Theory X managers use firm direction and strict control over their people with close surveillance and threats of punishment. (Theory accredited to Douglas McGregor).

THEORY Y. Based on the assumption that people seek responsibility, and become committed to objectives through the satisfaction of self-actualization. That they have the capacity to demonstrate imagination and creativity in solving organizational problems. Theory Y managers delegate authority and permit greater participation of workers in policy and decision making in the areas that affect them. (Theory accredited to Douglas McGregor).

THEORY Z.  Emphasizes the importance of adapting managerial strategies and tactics to the regional or national culture and life-styles of employees. It stresses job security and the opportunity to gain recognition through employee participation in planning, problem solving, decision making, and quality awareness. (Theory accredited to William Ouchi).

THRIFT PLAN. An arrangement under which payroll deductions are made, with the worker’s consent, for investment and saving, to which the employer contributes. Much of the total fund is subject to tax-deferral. The accumulated amounts (contributions plus earnings on the contributions) become available to the worker, usually after certain conditions are met. (SAVINGS PLAN.)

TIGHT RATE. A time standard under an incentive plan in which it is difficult, when applying the appropriate effort and skill, to reach the expected incentive earnings. Theoretically, a rate in which insufficient time is allowed for the performance of an operation under the conditions of the incentive plan in use.


TIME AND ONE-HALF. Premium rate consisting of one and one-half times the employee’s regular rate.

TIME RATE. Compensation rate based on hours worked, i.e., hourly wage rate. (See TIME WAGE.)

TIME RATE EARNINGS. Compensation based on time rate multiplied by the amount of time of the work period.

TIME STANDARD. Designated time for the accomplishment of a specified task or job.

TIME STUDY. A work measurement technique consisting of a careful time measurement of the task with a time measuring instrument which has been adjusted for any observed variance from normal effort of pace and to allow adequate time for unavoidable or machine delays, rest to overcome fatigue, and personal needs.

TIME WAGE. Compensation based on hours worked rather than quantity produced.

TIN HANDCUFFS. Relatively small monetary or stock inducements to entice employees to stay with the company.

TIN PARACHUTES. Relatively small amounts of monetary compensation given to employees dismissed as a consequence of a merger or acquisition.

TIP. A gratuity given by a customer or patron in recognition of satisfactory personal service or through custom. Tips are considered as compensation by the Bureau of Internal Revenue, thus constituting taxable income. Employers are required to withhold taxes based on an estimate of the expected amount of tips received by each employee.

TONNAGE RATE. Pay for a unit of work applicable to incentive workers and common in such industries as coal mining and basic iron and steel, where output for important categories of workers can be measured on a tonnage basis.

TOOL ALLOWANCE. Allowance to an employee, paid by employer, as reimbursement for the cost of tools and upkeep, where the employee furnishes his/her own tools or is responsible for their maintenance. An allowance in a standard to cover tool maintenance such as tool sharpening.


TOTAL CASH COMPENSATION. The total cash payment made to an individual in the form of compensation in a given year.

TOTAL COMPENSATION. The complete pay package for employees including all forms of money, benefits, and services and in-kind payments.

TOTAL PAY. The net amount paid to an expatriate employee consisting of the sum of his or her base salary, expatriation premium and allowances less the tax equalization factor.

TOUCH LABOR. Work directly applied to material or product. Refers to those workers actually in physical contact with product during manufacture.





TRAINEE. The term “trainee” applies to workers who receive formal training for occupations requiring a limited degree of skill. The training may include some classroom work. A trainee differs from a learner in that a learner does not receive formal training but learns the job through actual performance, under supervision.

TRANSFER CARD. Card issued by a local union to a member in good standing, certifying eligibility to join another local of the same union in a different  location.

TRANSFER PAY. Compensation for period of temporary reassignment or for period of time subsequent to permanent reassignment.


TRAVEL TIME. The time spent traveling to and from a designated point and place of work. Such travel includes portal-to-portal in mining, deadheading on railroads, and out-of-town work performed by building tradesmen, mechanics, musicians, etc.


TRUSTEE. A person, bank, or trust company who administers and takes responsibility for a trust fund, or a person who is a member of a board of trustees. (See FUND.)

TRUSTEESHIP. In union affairs, the taking of direct control of a local union by the national or international union, generally to correct mismanagement or illegal practices on the part of local officers, to prevent secession, or to strengthen the local. Control of the local is returned to members or officers after the cause for trusteeship has been corrected. (See MONITORSHIP.)


TUITION PAYMENT PLAN. Plan providing for payment by the employer of a part or all of the costs of job- related training courses undertaken by employees.



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