← HR Metrics·Regulatory Compliance
Pay-Floor Failure Rate
Share of evaluated workforce records paid below the applicable jurisdictional minimum-wage floor at the evaluation date. A composition metric across the evaluation cohort; the denominator is evaluated workers, not total workforce.
How it’s computed
COUNT(compliance_status='fail') / COUNT(evaluated_workers)
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
- Wilson, E.B. (1927). Probable inference, the law of succession, and statistical inference. JASA 22(158): 209-212. (1927)
- U.S. Department of Labor — FLSA enforcement statistics methodology (https://www.dol.gov/agencies/whd/data)
- wage-compliance spoke contract types (PAT-79): ComplianceStatusEnumSchema = {pass, fail, warning, unknown}
What this metric can show you
Pay-Floor Failure Rate can tell roughly 23 pre-built stories — each a designed scene the data either confirms or it doesn’t. Bring your numbers and the Story Finder runs every one of these shapes against them.
specific to regulatory compliance
One group sits apart on a decision that should be neutral
fairness-equity · T1
One population, well-behaved
measurement-health · T1
The differences aren't the story
measurement-health · T1
The system isn't differentiating
measurement-health · T1
Two clusters wearing one chart
measurement-health · T1
universal shapes — any single metric can take these
A few large values are doing the talking
any focus · T1
A one-time event, not a trend
any focus · T1
It doesn't track — the premise is false
any focus · T1
It's concentrated — one group stands apart
any focus · T1
Scenes are pre-built; your data is the toggle. Browse the full deck or watch one play end-to-end in The Quiet Exodus.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“In other words, active employees today pay for current retiree benefits. There is growing concern in some countries, particularly in Western Europe, as to whether this system will be viable given that the proportion of actively employed people vs. retirees is expected to…”
— Worldatwork Handbook Compensationmatch 52%
“Of course, if it’ s a minimum-wage job and the only component of pay is the wage, there are no components that can be subtracted feasibly (e.g., most minimum-wage jobs don’ t offer many fringe benefits). You can never truly escape from a floor or ceiling. To understand why,…”
— Strategic Compensation Talentmatch 51%
“Employees may progress from step to step on the basis of time-in-grade, performance, or the acquisition of new job skills.[C4, GR4]Pay surveyGathering, summarizing and analyzing data on wages and salaries paid by other employers for selected key classes of jobs or benchmark…”
— Worldatwork Handbook Compensationmatch 50%
Resources: Worldatwork Handbook Compensation · Strategic Compensation Talent