Tag Archives: compensation
Employers in New Jersey are now prohibited from taking any job action against employees who request information about job titles, wages or benefits from other employees or former employees in connection with an actual or potential claim of discrimination.
Companies that prohibit, limit or take any action based on salary discussions by and between its employees are encouraged to immediately modify their policies to comply with this new legislation.
Employment law firm Jackson Lewis advises:
While the new law does not protect employees from adverse employment action unless the inquiry or disclosure is related to gathering information about discrimination, employers nonetheless should be cautious. In addition to the difficulty of being certain of an employee’s motives for making the inquiry or disclosure, the initiation of discussions concerning wages and other terms of employment often is protected activity under the National Labor Relations Act. In fact, the National Labor Relations Board considers any policy or practice that prevents or discourages employees from discussing the terms and conditions of their employment to be a violation of law.
New Jersey’s law mirrors the Paycheck Fairness Act, which has been introduced in Congress and would, among other things, ban retaliation against those who share salary information. Nearly half of all workers are either forbidden or strongly discouraged from sharing that information with each other, making it extremely difficult for women and other groups to root out discrimination.
U.S. Steel is facing a lawsuit from workers who claim that the time they spend suiting up in protective clothing for work is compensable. The company disagrees.
In fact, they disagree on so much it’s kind of amazing the workers are able to do any work there – how do their managers explain what needs to be done, when they can’t even agree on the definition of “clothes” or “changing”?
Yep, those are some of the things that SCOTUS will be debating when they hear this case later this fall.
Basically, unionized workers, who typically haven’t been paid for getting changed into special work clothes, continue to not be paid for it. But the steelworkers say that when this law was made – the 40s – protective gear was minimal. Now, they spend up to an hour getting dressed into their piles of protective clothing, and another hour getting out of it at the end of the day. That’s 10 hours per week – no small change.
The case has implications for other unionized industries where workers must wear protective gear, including meatpacking.
Have any experienced, long-term employees making around the same as new hires in the same job?
Yep, you’ve got salary compression. Here are some tips from SHRM on how to handle it:
– Review the compa-ratios within each salary grade or band by the employees’ time in position.
– Analyze how supervisors’ salaries compare to their direct reports’ salaries.
And when hiring, try these strategies:
– Control pay both from an HR policy standpoint and from a budgetary standpoint.
– Limit how high within a range new hires can be paid.
– Require a review of equity adjustments for incumbents if new hires are brought in at higher salaries.
Read the full article by Sibson Consulting for more detail.
Guess what? Researchers have found that when a candidate uses very specific figures in their initial request (the anchor, in industry parlance), it results in a higher end salary.
Go figure. Turns out that these candidates give the impression that they’ve done tons of research and are arriving at this figure based on solid knowledge. Now, some may be, but others may just be using it as a negotiating tactic.
When it comes to negotiating salary, Ms. Mason’s research indicates that a job candidate asking for $63,500 might receive a counteroffer of $62,000, while the request for $65,000 is more likely to yield a counteroffer of, say, $60,000, as the hiring manager assumes the candidate has thrown out a broad ballpark estimate.
“We often think a higher anchor is the way to go,” said Ms. Mason. “But you risk upsetting people if you’re too extreme. We found that you could be less extreme if you were precise and still do better in the end.” The best strategy, she added, is to start with a high (but not extreme) number that is also precise.
It’s something to bear in mind when hiring – or negotiating your own raises in the future. This is a little tip that you can use to benefit yourself on both sides of the table.