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This question is in relation to a current business policy, and if it is considered unethical and unfair and is grounds for a lawsuit. Scenario: There are two positions, current employees and incoming new employees. : say for example there is a position or positions per grade level and a budgeted Amount for said position. A new incoming employee is hired for that position and is payed a high rate within that allowed budget for that position. For eg. Budget 30k/yr but 15$/hr.(external incom emp). The current employee who is being promoted from one level below that position level is at say x$ per how and its policy that irrigardless of allotted salary per level for an internal promotion you can ONLY get 8% of your current rate raise per each level rise or minimum of said class if it’s a category change promotion vs in coming new employees who are free to try haggle if you’d say for a higher rate within the budget. The way I look at that is no matter what you will never be able to get pa
1 ANSWER
What you're describing may not be fair, but that doesn't mean that it is illegal. An employer can't discriminate on the basis of race, gender, religion, etc., but as long as the discrimination is not based on some such statutorily prohibited basis, and unless it is bound by some contractual restriction (e.g. a contractual provision that an employee will be paid at least as much as anyone else in the same position), an employer can pay its employees whatever the two of them agree to, as long as it doesn't violate minimum wage laws. It may not be fair that Alex Rodrigues is being paid much more than Didi Gregorious, but it is legal.
Answered on Jun 29th, 2016 at 1:05 PM