Can My Employer Pay Me Less Than the Others in My Same Job?
- Fair Labor Standards Act Your employer can't pay you less than the federal minimum wage under the Fair Labor Standards Act. ...
- Pay Equity Act The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. ...
- Seniority Coworkers who have been on the job longer than you have seniority. ...
- Solutions ...
What is seniority in employment?
Why do employers pay you less than coworkers?
What is the Equal Pay Act?
What is an example of an employer having the same right if two people hold the same job?
Can an employer pay you less than the minimum wage?
Do you have to be the same as your coworker?
Does the FLSA require employers to pay back wages?
See 2 more
Can 2 employees doing the same job be paid differently?
The Equal Pay Act requires that men and women in the same workplace be given equal pay for equal work. The jobs need not be identical, but they must be substantially equal. Job content (not job titles) determines whether jobs are substantially equal.
Can you pay employees different rates for different tasks?
Long story short: Yes, you can pay an employee different rates of pay.
Can I sue my employer for paying me less than my coworkers?
Under the Equal Pay Act, an employee can recover the difference in wages, interest, and an equal amount as liquidated damages. If an employee files a case in court, he or she can also recover attorney's fees and costs.
Why do people get paid different for same job?
Jobs for a specific occupation often have similar position descriptions, but individual tasks may vary. And jobs involving more complex tasks or greater responsibility may have higher wages than those that don't, even within the same company.
What can I do about unfair pay?
In order to report unfair wages, an employee must first file a complaint with a state or federal government agency that oversees unfair wage matters, such as the Equal Employment Opportunity Commission (“EEOC”). The agency that receives the complaint will then review the claim and open an investigation.
Why do I have two different pay rates?
An hourly employee who performs more than one job for the same employer may earn multiple pay rates. For example, a restaurant worker may make one hourly rate when working as a hostess, but another when working as a server.
What do you say when you are paid less than a coworker for the same work?
Be respectful. Remember that the reason you get paid less is because the company took a chance on you. Acknowledge that, but then lay out how you have learned the position and now perform it on par (or better) than others in similar positions. Don't ask for a raise.
What do you do when new hires are paid more?
What to do when new employees get paid more than existing employeesEvaluate the situation. ... Remain positive and friendly. ... Track your productivity and success. ... Research fair earnings. ... Wait for the right time to talk with your boss. ... Boost your skills. ... Expand your professional network. ... Schedule an appointment.More items...•
What to do when you are paid less than your colleagues?
In most cases you should go directly to your boss first, assuming you have a good relationship and your boss is reasonable. “It's ultimately the manager's decision,” says Lucas. Human resources is a strong second step if having this conversation with your boss isn't a good option, or doesn't address your concern.
Why do new hires get paid more?
Employers often need to increase pay to hire experienced or in-demand workers when the need for workers outstrips the supply of available talent. At the same time, raises for current staffers may not have kept up. The disparity can also happen when companies use out-of-date data to set pay.
What do you do when a coworker makes more than you?
What to Do If You Find Out Your Co-worker Earns a Higher SalaryASSESS THE SITUATION. It's only human to feel frustrated after hearing someone you consider an equal earns more than you. ... DO YOUR RESEARCH. If you know that you and your co-worker are similar on paper, do some fact-finding. ... TALK TO YOUR MANAGER.
What is the law on equal pay?
By law, men and women must get equal pay for doing 'equal work'. This is work that equal pay law classes as the same, similar, equivalent or of equal value. This means someone must not get less pay compared to someone who is both: the opposite sex.
What is a dual rate employee?
A dual pay rate is calculated to pay overtime for hourly employees or employees paid a day rate. Most commonly, dual pay rates are used to pay office workers and those in administrative positions who work multiple jobs within an office at different rates.
What is differential hourly?
Shift differential pay is additional or modified compensation based on the time or job tasks associated with an hourly employee's shift. For example, employees who work an overnight shift from midnight to 8 a.m. may receive a higher hourly rate than employees who work a standard day shift.
How do you calculate blended hourly rate?
An employee can find his blended rate by multiplying the number of hours he worked at each rate by the rate of pay. For example, if a teacher's assistant works 10 hours each week in the cafeteria for $8 an hour and in the classroom for 30 hours each week at $10 an hour, the blended rate is $9.50.
How do you calculate overtime with different pay rates?
According to the FLSA, the formula for calculating overtime pay is the nonexempt employee's regular rate of pay x 1.5 x overtime hours worked. This calculation may differ in states that have requirements, such as double time, which are more favorable to the employee.
Can a company pay different wages for the same job?
It is legal for a company to pay different wages for the same or similar job, but only if there are non-discriminatory material factors which expla...
What is meant by equal pay for equal work?
Equal pay for equal work refers to the right under the Equality Act 2010 for both men and women to get the same pay and contractual benefits for do...
Can you be paid less for doing the same job?
It’s possible to be paid less for doing the same job, provided your employer is able to show a material factor that explains the reason for doing t...
What is the Equal Pay Act 2010?
The provisions on equal pay are set out under the Equality Act 2010. This replaced the previous legislation, including both the Equal Pay Act 1970...
4 Factors That Can Result in Different Pay Levels for ... - The Nest
Skill and technical proficiency can be reasons to pay a different salary, especially if they are highly relevant to the particular job. For example, secretarial jobs might be paid differently if one employee is highly skilled at using software programs, such as spreadsheets, and can type 80 words a minute, compared to an employee who has no experience with spread sheets and types 40 words a ...
Same job, different pay: Is that legal? - Business Management Daily
Q. We have two employees who have the same job title, job description and functions. We pay one a flat salary ($120,000). We pay the other a base salary plus a fixed rate for hours that are ...
We have the same job, but I get paid less. What do I do?
THE QUESTION. In Ontario, I work at a utility in a middle-management position, in a group of three people who do the same job – often swapping projects to balance workload, filling in for each ...
What does the law say about same job different pay?
Under the provisions of the Equality Act 2010, both men and women are entitled to get the same pay and contractual benefits for doing comparable work. These provisions are there to protect individuals from discrimination and bias at work by reason of their sex, and apply equally to male and female employees, although historically women have been paid less than men for doing the same or equivalent work.
Can a company pay different wages for the same job?
It is legal for a company to pay different wages for the same or similar job, but only if there are non-discriminatory material factors which explain the reason for the difference.
When can an employee bring an equal pay claim?
If an employee has reason to believe they are subject to inequality of pay on gender grounds, they will be legally permitted to ask other members of staff about how much they earn and what benefits they get. The 2010 Act limits the enforceability of what are often called secrecy or gagging clauses that some employers use to restrict any discussions about pay packages and differentials.
What is meant by equal pay for equal work?
Equal pay for equal work refers to the right under the Equality Act 2010 for both men and women to get the same pay and contractual benefits for doing comparable work, unless any difference in pay can be objectively justified.
What is the Equal Pay Act 2010?
The provisions on equal pay are set out under the Equality Act 2010. This replaced the previous legislation, including both the Equal Pay Act 1970 and Sex Discrimination Act 1975, plus the equality provisions in the Pensions Act 1995.
What is included in the Resolution Foundation?
The Resolution Foundation figure includes wages as well as other benefits such as unclaimed holiday or sick pay, and deductions for uniforms. That's more than the number of people on zero-hours contracts, according to the think-tank.
How long do you have to be an agency worker?
From day one, agency workers should: Get access to the same facilities such as canteens, crèche or car parks. Be made aware of any job vacancies. After 12 weeks , agency workers should: Get the equal pay as a permanent employee. Get equal treatment on breaks, holidays and hours.
What are the rights of a worker?
What are your rights as a worker? 1 Everyone should be paid National Minimum or Living Wage - depending on age 2 All workers are eligible for statutory sick, holiday and maternity or paternity pay 3 Everyone is protected from unlawful deductions from wages and discrimination 4 Everyone is entitled to be enrolled into a pension if they meet the criteria 5 No one should work more than 48 hours a week unless they opt out 6 No one should be charged direct or indirect fees for finding a job 7 No one should be prevented from working elsewhere
Why is Pay Between Assignment outlawed?
The think-tank wants contracts - so-called Pay Between Assignment - to be outlawed because they give firms a legal way to avoid equal pay obligations.
Where does Connor McCann work?
Connor McCann works in a BT call centre in Canterbury but despite doing the same role as his colleagues was paid thousands less a year. That's because the 24-year-old was employed by agency Manpower and not BT. "It didn't matter how good you are at your job, you're still being paid less than your colleagues," he said.
Is Manpower compliant with the government?
A spokesperson for Manpower says the company "ensures that it is always compliant with appropriate regulations and best practice and welcomes any move by Government to stamp out malpractice in support of temporary workers."
Should everyone be paid minimum wage?
Everyone should be paid National Minimum or Living Wage - depending on age. All workers are eligible for statutory sick, holiday and maternity or paternity pay. Everyone is protected from unlawful deductions from wages and discrimination. Everyone is entitled to be enrolled into a pension if they meet the criteria.
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Why is periodic pay analysis important?
Periodic pay analyses—like the one Dunham's department created—are advisable, HR managers said, so that a company is not blindsided when confronted with a pay disparity complaint.
Why is there a pay disparity between two people performing the same job?
Some HR managers noted that there may be pay disparity between two people performing the same job because one was hired at a time when market demand for his or her skills was lower than it is now.
What is the purpose of continuous learning?
To grow, evolve and inspire we must engage in continuous learning.
Is it illegal to give an increase to an employee if the pay difference isn't due to discrimination?
If the pay difference isn't due to discrimination, "as far as I know … [an] employer can have two titles with similar duties and the employees can be paid differently," said Milagros Ocasio, HR director for Jaspan Schlesinger LLP in Garden City, N.Y. "Favoritism, cronyism and nepotism are not illegal either. The employer can say, 'I gave that employee an increase because I felt like it,' and that is not illegal."
Does SHRM offer legal advice?
SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer
Who is Allison Dunham?
But Allison Dunham, operations manager for Trinity Door Systems Inc. in Youngstown, Ohio, said that in instances of pay disparity for people performing the same job, she would be less worried about lawsuits than she would be about attrition, falling morale and lack of motivation.
Why do people get different salaries?
“People can end up with different salaries for the same work because one negotiated better when being hired, or has asked for larger raises than the other person has, or the employer puts more value on one person’s education, or type or amount of experience ,” says Alison Green, creator of the Ask a Manager work advice site.
Why do coworkers out-earn you?
The legally defensible reasons your co-worker may out-earn you include: experience, education, and time in position . And of course the first two factors mean it’s possible that the new guy makes more than the company veteran.
What to do if you have a wage discrepancy?
If that’s the case, then Lucas recommends you write up an email documenting everything you know and email it to the HR manager with the subject line “Official complaint of gender discrimination” — and copy your home email address on it.
How to feel angry about wage discrepancy?
It’s natural to feel angry about a wage discrepancy. While you may want to harness that emotion to motivate you to actually raise the issue, you should try to present yourself as calm, cool, and collected in the meeting itself. Don’t assume the difference in salary is illegal discrimination, especially if you don’t yet know all the facts.
What happens if you find out that a peer makes more than you?
If you have found out that a peer makes more than you, and suspect it’s illegal or think it’s unfair, you’ve probably vented to your best friend, or partner, or mom. Now it’s time to actually take action.
Can your boss respond defensively?
This isn’t an easy conversation, for either employee or boss, and it’s possible that your boss will respond defensively or argumentatively. To diffuse that, Lucas suggests using “we” language in the conversation.
Is human resources a good second step?
Human resources is a strong second step if having this conversation with your boss isn’t a good option, or doesn’t address your concern.
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What is illegal discrimination?
Illegal discrimination is differential treatment based upon personal characteristics, such as age, race, gender, religion, illness or disability, sexual orientation and several other defined grounds. If your employer is paying you less because of your religion, for example, this is illegal and contrary to human-rights laws.
How to write a letter to the editor of the Globe?
If you would like to write a letter to the editor, please forward it to [email protected]. Readers can also interact with The Globe on Facebook and Twitter .
What to do when two people are in a lower pay grade?
As two of you are in a lower pay grade, examine the different criteria against the higher paid manager to see if you can determine the variance. Management agrees that a pay-grade increase would be appropriate yet, nothing is forthcoming.
Why is it important to continue to perform at a high level?
It is important that you continue to perform at a high level so when the monies are available to move the two of you up, you'll have a litany of accomplishments to speak to in a performance evaluation. There is more than one way to be compensated for a job well done.
Is pay inequity illegal?
Pay inequity, per se, is not inherently illegal. However, if the motivation for differential pay grades or grade levels is in any way related to one or more of the specifically listed grounds of discrimination in provincial or federal human-rights legislation, then it is illegal and your employer would be in very hot water.
Is discrimination illegal after leaving a company?
Once you leave a company you have zero recourse. Not all discrimination is illegal. An employer can choose to pay some employees less than others, or pay some employees more, even for the exact same work. Pay inequity, per se, is not inherently illegal.
What is seniority in employment?
Seniority. Coworkers who have been on the job longer than you have seniority. Some workplaces give employees with seniority preference when doling out pay raises and promotions. Union-represented employees make decisions and negotiate wages and other workplace issues based on seniority. If your employer bases pay raises on seniority, ...
Why do employers pay you less than coworkers?
Seniority, performance, tasks, years on the job and experience often affect pay. Your employer can use any of these reasons for paying you less than coworkers doing the same job, although some courts have ruled against employers making these claims. A first step in finding out what your employer can or cannot do with your pay is understanding how the law protects it.
What is the Equal Pay Act?
Pay Equity Act. The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. However, the law protects both genders.
What is an example of an employer having the same right if two people hold the same job?
An example is a salesperson who not only meets with clients but also may offer buyers pay options. Turning off office lights at the end of the workday doesn't merit higher pay. 00:00. 00:04 09:16.
Can an employer pay you less than the minimum wage?
Your employer can't pay you less than the federal minimum wage under the Fair Labor Standards Act. States set their own minimum wages and if your state's is higher than the Fed's, your employer must pay the higher rate. Also, if your employer pays you by the hour and you work over 40 hours in any given week, your employer must pay you 1.5 times your base wage for every additional hour you work. The FLSA doesn't set wages or decide whether rates are unfair between you and your coworkers, but it does bar your employer from paying you below a certain amount or not paying overtime if you qualify.
Do you have to be the same as your coworker?
Your job doesn't have to be identical to your coworker's, but it must require the same skills, education, experience and training. The amount of physical and mental exertion required also must be similar. If two people hold the same job and one of them performs a task requiring more exertion, the employer can pay that worker more.
Does the FLSA require employers to pay back wages?
The agency favors settling disputes out of court, but it can require employers found guilty of discrimination to pay fines, end unfair practices and pay you back wages. The Labor Department's Wage and Hour Division handles complaints under the FLSA. Have documents to back up your complaint.
