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Abbott-Langer & Associates Business Glossary

This glossary of business definitions contains over 2,000 business terms used in compensation and benefits administration. Continually updated, this specialized business dictionary focuses on definitions of Human Resources terms and business terms.

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Occasional Tasks

Under the Fair Labor Standards Act (FLSA) new regulations, occasional tasks are infrequently recurring tasks that cannot practicably be performed by nonexempt employees, but are the means for an exempt employee to properly carry out exempt functions and responsibilities, are considered exempt work. The following factors should be considered in determining whether such work is exempt work: Whether the same work is performed by any of the exempt employee’s subordinates; practicability of delegating the work to a nonexempt employee; whether the exempt employee performs the task frequently or occasionally; and existence of an industry practice for the exempt employee to perform the task. (FLSA Section 541.707)

Occupation

An activity that serves a regular source of income, and that is common to various companies.

Occupational Differentials

Wage rates that have stable differences among occupations.

Occupational Employment Statistics (OES)

Occupational Employment Statistics that provides employment and wage estimates by occupation for selected metropolitan areas, as well as the nation and the individual states.

Occupational Outlook Handbook

Provides general information on jobs, occupations, job categories.

OES

Occupational Employment Statistics that provides employment and wage estimates by occupation for selected metropolitan areas, as well as the nation and the individual states.

Office Of Federal Contract Compliance Programs

Under the Vocational Rehabilitation Act of 1973, the agency is to enforce affirmative action for government contractors.

Office Of The Superintendent Of Financial Institutions

An executive agency in Canada that is responsible for administering insurance laws for the provinces.

Offset

A provision in tax law in which an insurer is allowed to use the amount paid for one type of tax to decrease another area of tax liability.

Offset Approach

A method of coordinating defined private pension plan benefits with those of a government plan. The benefits from the private plan are decreased by a certain percent from the benefits received from the government benefits.

Old Age Security Act (OAS)

In Canada, a law that gives pension benefits to almost all citizens 65 or older.

Old Age, Survivors, Disability And Health Insurance Act (OASDHI)

A federal law that created Social Security in the United States for the elderly and disabled that includes retirement, survivor and disability insurance, hospital and medical insurance.

Omnibus Budget Reconciliation Act Of 1993

Federal legislation that impacts many direct and indirect components of pay (such as qualified retirement plan limits), increases the Medicare tax base, eliminates the deduction for executive pay in excess of $1 million under most circumstances, and extends the tuition reimbursement exclusion.

On-Call Pay

A pre-determined amount of compensation that is provided to an employee that is willing to report to work on short notice.

Ontology

A listing of statements written in a resource description framework (RDF).

Open Contract

A kind of insurance contract utilized by fraternal benefit societies in which the society's charter, constitution and by laws become part of the insurance contract.

Open Ended Questionnaire

A technique used when analyzing a job using a written set of questions that requires a narrative response.

Open Pay System

A compensation program that makes public salary information , including individual wage levels.

Operating Income

A measure of a company's earning power.

Opportunity Cost

The cost of spending funds on one investment instead of another.

Option

The right, to buy or sell a specific amount of a given stock, index, commodity, currency, or debt, at a specified price during a specified period of time.

Option A Plan

A plan common to universal life insurance where the policy proceeds are equivalent to the death benefit.

Option B Plan

A plan common to universal life insurance where the policy proceeds are equal to the death benefit, plus the cash value.

Option Exercise Price

The price that will be paid to purchase shares covered by a stock option.

Option Grant Date

The date that a stock option term begins and the option become effective.

Option Performance Vesting

An option becomes exercisable during its term based on certain performance objectives.

Option Profit

When the price of the shares is more than the exercise price at the time the shares are exercised.

Optional Modes Of Settlement

The kinds of payments that are available to the insured or the beneficiary instead of a lump-sum payment.

Optionally Renewable Policy

A individual health plan that is renewable on the anniversary if the insurer chooses to renew it.

Ordinal Measurements

Measurements that show the rank or order of the items being counted or measured.

Ordinary Income

According to the IRS, all income that is subject to ordinary tax treatment.

Ordinary Income Tax

An individual's tax they must pay on earnings from all sources of income, except capital gains.

Ordinary Insurance

Insurance that is issued to an individual person.

Ordinary Life Insurance

Life insurance that is available on a somewhat unrestricted maximum death benefit amounts.

Organization For Economic Cooperation And Development (OECD)

An association European countries, Asia/Pacific and North America that share the same principles of market economy, democracy and human rights.

Organization Manager

Any officer, director, trustee, or person having similar powers or responsibilities in a tax-exempt organization. This person may be subject to IRS fines under INTERMEDIATE SANCTIONS regulations.

Organizational Development (OD)

Improving individual and organizational behavior via systems and programs, through training and development.

Original Age Conversion

Changing a term life policy into a whole life policy at a premium rate based on the age of the policyholder at the time the term policy was purchased.

Original Equipment Manager (OEM)

Takes integrated products of another manufacturer makes them into a final product.

Out Of Plan Services

Healthcare providers that are not participating in a health plans network, therefore the insurer would require higher co pays or deductibles.

Out Of Pocket Limit

The dollar amount that an employee is responsible for paying for medical care during a certain period of time, usually a calendar year, then the insurer pays 100% once the out of pocket limit has been paid.

Outliers

A Medicare patient that has an illness that is unique and not able to be classified in one of the diagnostic groups.

Outplacement Assistance

Counseling to employees that have laid off that can include assistance in regaining self confidence, teaching job search skills, resume preparation and ultimately finding a new position.

Outside Director

A member of the board of directors that is not an active employee, or a retired employee or conducts business with the company for which he is a board member.

Outside Payroll

Refers to costs of benefits that do not include the company's direct payroll.

Outstanding Premium

Premium that is required on or prior to the policy statement, but has not been received by the specific date.

Over Insurance Provision

In individual health insurance, the policy will specify that under certain situations the benefits will be reduced if the employee has more insurance that what is necessary to pay for medical expenses, or in the event that disability income may exceed the insured's predisability earnings.

Over Retained

An occurrence in which an insurance or reinsurance organization has approved an amount of insurance that exceeds the company's usual capacity for a specific risk.

Over The Counter

Securities in companies that that are publicly traded, however are not on one of the enacted stock exchanges.

Overfunded Pension Plan

A defined-benefit pension plan that the assets have surpassed the company's current and projected future liabilities.

Overlap

The degree by which there is overlap in adjacent pay ranges.

Overlapping Territory

In the general agency system, the territory that some portion of the area is open to another agent, rather than the general agent, but the rest of the territory is exclusive to the general agent.

Overriding Commission

Commission that is earned by the field office manager which is based upon the business that is created by the agents in the office.

Overtime

Each hour worked in a workweek in excess of the maximum hours applicable. This usually means hours worked in excess of 40 in a workweek. Under the Fair Labor Standards Act of 1938 (FLSA), there is no limit to the number of hours that an employee may work, either daily or weekly. It simply requires that overtime pay must be paid at a rate of not less than 1½ times the nonexempt employee’s regular rate of pay for hours worked over the maximum in a workweek.

Own

50% ownership of a value of a stock or at least 50% value of combined voting strength of the various classes of stock each organization of the group.

Owners Equity

Money given to the company owners via an issuance of equity securities and possibly through retained earnings.

Owners Of Corporations

Stockholders.