Same classification, different pay?

Jeannie

Our technician employees of which there are 2 classifications only, all receive different hourly pay levels. Each new hire is negotiated individually, but the troops are talking and becoming disgruntled. They seem to be searching for a DOL discrimination. Are we in compliance, or required to pay each class the same starting wage regardless of experience and education (race, gender, etc)?

Hatchetman

While there may be some provision hidden somewhere in a state law, federal law does not require that all employees in the same job receive the same rate of pay unless of course there is illegal discriminatory intent or impact (e.g., to women, minorities, or disabled). The rate of pay is strictly an employer issue.

I'm assuming that there is some justifiable rationale to the difference in rates: e.g., higher rates for certified or experienced employees (based on number of years) because these factors do establish that these employees are more valuable to the employer; and that any of the lower paid employees can reasonably achieve the higher rate by meeting the criteria at some point in their career.

Of course, with the differing pay, morale issues such as what you are encountering start to occur. And it an be an opening for union activity by disgruntled emplyees. And, of course, you know somewhere along the line, an employee will claim discrimination in the pay rate by filing with EEOC.

Margaret Morford

[font size="1" color="#FF0000"]LAST EDITED ON 03-30-02 AT 09:59PM (CST)[/font][p]I thought I'd add this to the excellent advice you got from Hatchetman above. You may want to establish wage ranges for these two jobs and make it your policy to pay within the range depending on skill, experience, length of service, etc. You can do this yourself by polling other employers in the area to find out what their minimum, midpoint and maximum pay is for these two jobs or you can hire a compensation specialist to do this for you. Obviously, the more professional the effort, the easier to defend. Keep the documentation for how you established these ranges in case you have to use it to defend yourself later against an allegation of discrimination. If you want a referral to a comp specialist with excellent credentials and reasonable rates to do this for you, I'll be glad to help you. However, even if you establish these ranges, you might still get a discrimination charge if a protected class is overly represented in the bottom of the range. For example, the range goes from $8.00 per hour to $11.00 per hour and most of the women in that job category are making $8.00 to $8.25 and most of the men are making $10.00 to $10.50 per hour.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Theresa Gegen TX

NOTE: Differences in pay rates MUST be based on objective factors that are based on true business needs -- for example years of experience or specific education. Many companies have been burned by using a "market place" type of differentiation -- this employee did not negotiate as hard, etc. Because invaribly "this employee" will be the woman or minority.

And, atleast as far as experience is concerned, one court has indicated that after a few years on the job, when performance was fairly equal, the pay should have equalized (that case was a sex discrimination case, in which the female employee still made less than the males after 5 years, even though her performance was as good or better).

Good Luck!!