Final Answer:
Situations where an employee's pay is below the minimum of the range are classified as Yellow-circle rates. Therefore, yellow-circle rates indicate that the employee's compensation falls short of the established baseline for their position, prompting considerations for salary adjustments or reviews. so, the correct option is 1. Yellow-circle rates.
Step-by-step explanation:
Yellow-circle rates refer to situations where an employee's pay falls below the minimum of the established pay range. This designation implies that the employee's compensation is not meeting the baseline standards set for their position.
Yellow-circle rates - When an employee's pay is designated as yellow-circle rates, it signifies that their compensation is below the minimum threshold within the established pay range for their position. This may occur due to various factors such as market adjustments, internal equity considerations, or individual performance issues. Addressing employees in the yellow-circle range often involves salary adjustments to ensure fair and competitive compensation.
Therefore, the correct option is 1. Yellow-circle rates.