Pay Disparity

In some companies, there are situations in which two people do the same job, but one gets paid more. This is entirely illegal unless there is some legitimate basis for the difference in pay. While there are certain factors that could legally cause pay disparity, most are illegal.

One of the legal reasons for a difference in pay is an experience based pay scale. If one person has more experience in the field, that person can legally be paid more for the same or similar job. Some companies also rely on merit or productivity pay scales. The most obvious form of this is commission. The more a person sells, the more he or she gets paid.

Although there are legal reasons for two people to be paid differently, pay disparity is often illegal. When two people have the same amount of experience and perform their jobs to the same degree of efficiency, they should be paid the same amount. If that is not the case, the employer is breaking the law and owes one of the employees for the disparity.

There are many different reasons that an employer might show favor to one employee over another. One of the most common is gender discrimination. It is well known that women tend to be paid less than men for doing the same work. However, this is only one reason that pay disparity exists.

Speak with an Austin Employment Lawyer

If you or someone you know is being paid differently for any reason, contact the Austin employment attorneys of Melton & Kumler, PLLC at 512-330-0017.