The federal Equal Pay Act (EPA) says it’s illegal to pay unequal wages to men and women “who perform jobs that require substantially equal skill, effort and responsibility, and that are performed under similar working conditions within the same establishment.”
That means, under the EPA, employers can set different salaries based on geographically distinct job locations.
In other words, you aren’t required to pay a manager in New York City the same as one in a lower-cost locale, even if the New York manager is male and the manager in the other location is female. Plus, any differences in responsibilities can help justify the difference.
Of course, you can expect a legal complaint if you reverse the sexes and decide to pay a woman assigned to New York less than a man working in Small Town USA.
Recent case: Jeanette Renstrom worked for Nash Finch as a grocery buyer from 1979 until 2009, when she retired. That’s when she sued, alleging pay discrimination.
She claimed two male grocery buyers in other locations were paid more than her. Nash Finch argued that the positions weren’t equal and the locations required different compensation plans.
As an example, it explained that the men had much larger territories to manage and had to do far more work than Renstrom did. That was enough for the court to toss out the case. (Renstrom v. Nash Finch, No. 09-CV-1823, DC MN, 2011)
Final note: Remember, employees can challenge pay decisions years after the fact, based on the impact on their current paychecks.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/14019/its-legit-to-use-differences-in-location-and-duties-to-justify-varying-pay-scales "
- Oral promise of long-term job will trump written at-will agreement
- How much can tip credits offset our minimum wage obligations?
- Beware alternative to Title VII: There's another way to file for race discrimination
- New for New York employers: union posters, NYC religious accommodation
- 5 ways to keep mandatory overtime from boiling over