Ensuring Your Employees’ Pay Is Fair and Documented
Long Island City, Queens, NY Employment Defense Attorney
Paying employees is subject to discrimination laws and regulations that ensure fairness. As an employer, it is important to understand the laws and keep documentation that shows your compliance. Such preventative measures can help you establish good policies and also avoid disputes and lawsuits.
EEOC Guidelines for Paying Employees
The Equal Employment Opportunity Commission (EEOC) recommends you follow certain guidelines when determining what employees should make.
Managers
When training managers, it is vital to make sure they understand their responsibilities when determining pay. Also, they should keep detailed records of any pay decisions they make.
Pay Criteria
Employers should ensure equal pay for men and women who do the same job or work. Avoid discriminatory questions. For example, do not ask for prior salary information. Prior salary is not a valid justification for paying an employee a lesser salary when the employee is doing the same job as another employee. However, a lower salary based on fewer job-related qualifications would be justifiable.
Other pay differences that are justifiable include when pay is based on the following:
- Seniority system. Employers can justify paying higher wages to employees who have worked longer and therefore contributed more work to the company. Seniority systems may incorporate additional rights and benefits in addition to greater compensation.
- Merit system. Certain jobs incorporate bonuses or other pay to reward excellent performance.
- Incentive system. Incentive systems base pay on the quality or quantity of production. The system must be explained to employees, be applied equally for both sexes and have pre-determined factors.
Any of these systems are justifiable as long as there is no intention to discriminate based on race, color, religion, sex (including gender identity, sexual orientation and pregnancy), national origin, disability, age or genetic information.
When to Seek Legal Advice
If an employment dispute arises over pay, it is wise to seek legal counsel. At Stephen Hans & Associates, our attorneys advise employers regarding wages and other employment issues. We have extensive experience representing employers in employment litigation.
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