Is this legal?
Hi -
Is it legal for a company to pay employees at one subsidiary a different wage than employees at another subsidiary for doing the exact same job?
Thank you.
Answers (1)
Wage disparity
Assuming that you have no union (and if you do, there should be union involvement on this issue), the legality of paying different wages in different facilities usually comes down to whether there is illegal discrimination. Maryland and federal law require that people of different genders be paid the same for the same work, by the same company. These laws have exceptions that often engulf the rule. If the wage issue does not involve male vs. female, or perhaps people of different races, there may be nothing you can do. The corporate structure may be critical too. If the subsidiaries are different companies, then other rules determine whether they can be considered part of the same bigger enterprise for the purpose of comparing wages. I hope this helps you understand the issues a little better.
posted by Mary T. Keating | May 29, 2007 3:59 PM [EST]
Assuming that you have no union (and if you do, there should be union involvement on this issue), the legality of paying different wages in different facilities usually comes down to whether there is illegal discrimination. Maryland and federal law require that people of different genders be paid the same for the same work, by the same company. These laws have exceptions that often engulf the rule. If the wage issue does not involve male vs. female, or perhaps people of different races, there may be nothing you can do. The corporate structure may be critical too. If the subsidiaries are different companies, then other rules determine whether they can be considered part of the same bigger enterprise for the purpose of comparing wages. I hope this helps you understand the issues a little better.
posted by Mary T. Keating | May 29, 2007 3:59 PM [EST]
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