2 ms·
"SB 1162 doesn’t make clear how the law applies to companies that employ workers remotely" There is always going to be a push/pull with regulations. Considerin
by frellus 4y ago
"SB 1162 doesn’t make clear how the law applies to companies that employ workers remotely"
There is always going to be a push/pull with regulations. Considering the above statement, thinking about regulatory burdens, companies may try to work around them and, if necessary, hire people out of state to avoid reporting.
So let's forget about diversity for a second in terms of gender and race and pretend it doesn't factor into decision making at all: Companies want to hire competitively; the want the best, experienced worker for the least cost possible.
Anyone who thinks companies hire without regard to cost is living in a fantasy land and they flunked Econ 101.
So what will happen as a result of this bill? Companies will report their average wages and make it hard to find because an "average" means that some people are above it, some are below it. If everyone who see's they're "below" the average demands at least a match to the 'average', guess what!?? The average changes! Because there were people who were paid above average.
Of course, everyone should be paid fairly based on skill, but I'm sorry -- one of those skills happens to be negotiation. If we want everyone to be paid the same, we shall all be dragged downward, not upward. I, for one, don't want to be paid the average, I want a high salary -- but not so high that I'm the top paid person (because guess what happens when a company has to cut expenses?)
- lotsofpulp 4y ago> If everyone who see's they're "below" the average demands at least a match to the 'average', guess what!?? The average changes! Because there were people who were paid above average. Another option is the employer denies the employee’s request for a raise.
- ajmurmann 4y agoThat sounds true. In practice I've been talking with people about their paybands for years and everyone understands that sometimes they will be below their payband's midpoint. In dozens of conversations like this that hasn't been a problem even once. The key is though to be able to explain why someone is placed in the payband where they are. Understanding where your employees stand and what they need to work on to progress is a key manager competency.
- frellus 4y agoThose are all fair points!
- conception 4y agoGood management isn’t paying everyone the same, but it is explaining to employees why there are differences and how that employee can reach the same pay as their peers. The law doesn’t need to force anyone to get a raise but it should help do what managers should be doing - managing their team. And if the management can’t come up with a good reason for the difference they either match the salary, the employee now has good cause to hunt for a job and perhaps can see if there’s a pattern against a protected class.