Employers that pay new hires more than employees with the same or similar experience should be prepared to prove why they needed to sweeten the pot. Otherwise, they risk an Equal Pay Act lawsuit if it just so happens the hire is of the opposite sex as an incumbent.
Compensation and Benefits
Compensation and benefits topics – whether it’s minimum wage, workers’ compensation laws, or employee pay – if properly handled, can help you retain workers and recruit new ones.
Use our advice to craft independent contractor agreements that keep independent contractors – and your bosses – happy.
Under California law, all employees must receive regular wage statements. Employers that “inadvertently” fail to provide pay information might get away with it, but they shouldn’t count on it. Recently, the Court of Appeal of California considered the meaning of “inadvertently” and upheld penalties assessed against an employer that classified workers as independent contractors when they could not provide Social Security numbers.
If you decide to pay new hires more than employees with similar or better qualifications, be prepared to prove why you needed to sweeten the pot. Otherwise, you could be risking an Equal Pay Act lawsuit if an incumbent belongs to a protected class.
Two former Dow Jones executives have launched a business that hires economically disadvantaged single mothers and provides them with child care coverage and career development training. The organization’s founders call Moms and Jobs, or MoJo, “a social venture in a for-profit vehicle.”