States set their own minimum wages and if your state's is higher than the Fed's, your employer must pay the higher rate. The Labor Department's Wage and Hour Division handles complaints under the FLSA. 41, 590 – 55, 840. A gender pay gap is the average difference in pay between men and women, for example across an organisation. Is it unfair to pay two different employees a different wage or remuneration for the same work? 4 Factors That Can Result in Different Pay Levels for Employees Doing the Same Job. Share on Twitter. This job group salary scale ranges between Kshs. The real question you should consider though is whether you would want them to be in the same pay grade. Pay grade 2 assigns rates from $28,000 to $40,000 and so forth. A. range spread B. rate ranges C. key jobs D. compensable factors E. pay grades. Job Group M salary scale in Kenya. https://www.bls.gov/careeroutlook/2015/article/wage-differences.htm § 206). Instead, it is a general range of salaries that those working in a particular field can expect to make. Union-represented employees make decisions and negotiate wages and other workplace issues based on seniority. Even though the duties are the same, these part-time workers may not meet the salary level test or their available work hours may fluctuate enough that it is more practical to pay them on a non-salary basis. It is the 12th level in the civil servant grading system. However, the law protects both genders. In this case one might split a grade into two smaller grades so that the senior driver could be in a higher grade. They are unique to organizations. It may seem like an obvious yes, but the answer is actually no, says Sage Pastel Payroll … Employees who believe they're being paid less than other workers doing similar work because of gender, race, ethnicity, age, religion or disability can file a claim with the EEOC. By Jeanne Sahadi, CNNMoney.com senior writer An example is a salesperson who not only meets with clients but also may offer buyers pay options. This law came into existence in 1963 and was an amendment to the Fair Labor Standards Act (29 U.S.C. States set their own minimum wages and if your state's is higher than the Fed's, your employer must pay the higher rate. Employers with 250 or more employees must publish figures about their gender pay gap. For example, a beginning worker's job at pay grade 1 might involve 10 to 15 pay steps from $24,000 to $36,000. Pay grades are also useful in private sector employment. A first step in finding out what your employer can or cannot do with your pay is understanding how the law protects it. An employee under a covered pay system who is placed in a lower-graded position under the same or different covered pay system (e.g., as a result of a reduction in force or when his or her position is reduced in grade as a result of a reclassification) is entitled to retain the grade held immediately before the reduction for a period of 2 years. At what rate do employees progress through the pay range? In order to develop a risk free grading system it is useful to: Key questions to consider if designing or updating your job grading structure. Have objective and transparent reasons for progression through grades. This range isn't typically used as a formal pay structure in most organizations. The most basic pay structure used to determine pay within an organization is the pay scale or salary range. Men and women doing the same job should receive the same compensation. avoid having too many grade structures or grades, as these can increase the risk of equal pay issues. Experience makes a difference in many jobs. Thus these employees would perform the same job as the full-time exempt workers, but would do so on a non-exempt basis. Can you justify them? She is a former senior editor of national business publications covering management and finance, employment law, human resources, career development, and workplace issues and trends. The Equal Pay Act (EPA) is a federal law which states that men and women must be paid the same amount of money for doing the same job. If not, you can file a complaint with your state or local federal labor agency or get help from a union if you're a member. In the public sector, the Step 1 GS-4 pay grade generally is an entry-level position that starts with an hourly base pay of $11.98 per hour. The higher the grade level, the higher the pay. Look up the locality tables for your metropolitan area to determine the actual salary for your location. This scale … Same job, different salaries? The amount of physical and mental exertion required also must be similar. The GS-9 step-1 pay on the Base Rate Chart is $46,083. (2) However, if the highest previous rate falls between two step rates of the grade, the agency may pay the higher rate. In the next three years, the starting salary of employees in the same position will increase to Php 23,877 in 2021, Php 25,439 in 2022, and Php 27,000 in 2023. The series is a numbered system for grouping similar occupations. It is job content and not job titles that determine whether or not jobs are substantially equal. Many organisations group jobs into grades or bands, making it easier to apply the same pay and other contractual terms and conditions of employment to them. Pay/compensation discrimination occurs when employees performing substantially equal work do not receive the same pay for their work. Coworkers who have been on the job longer than you have seniority. If an employee is reduced in grade or pay in conjunction with a transfer to another agency, there is no mandatory entitlement to grade or pay retention. Do male and female employees have equal access to and receipt of all additional payments (for example bonus, overtime) and benefits (for example medical insurance)? Have documents to back up your complaint. Series and grade is the Federal Government’s system for categorizing and defining jobs. Q. Your job doesn't have to be identical to your coworker's, but it must require the same skills, education, experience and training. driver, even though the jobs are almost the same size and would normally be in the same grade. Also, if your employer pays you by the hour and you work over 40 hours in any given week, your employer must pay you 1.5 times your base wage for every additional hour you work. We have two employees who have the same job title, job description and functions. So, too, can any overlaps between grades. An assembly line worker who both assembles and packs up goods can be paid more for the energy needed for the extra task. Your employer can't pay you less than the federal minimum wage under the Fair Labor Standards Act. Also, if your employer pays you by the hour and you work over 40 hours in any given week, your employer must pay you 1.5 times your base wage for every additional hour you work. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. You must decide which is most appropriate for the size of your organisation and the composition of your workforce. Seniority systems are legal, but they're being challenged in courts as unfair employment practices. Published 18 January 2017 48, 190 – 65, 290. o Group similar jobs into pay grades. Your employer can't pay you less than the federal minimum wage under the Fair Labor Standards Act. Some workplaces give employees with seniority preference when doling out pay raises and promotions. What points in the pay range are employees placed on when they are recruited or promoted? Share on Facebook Share on Linkedin. on a specific date, such as the start of the financial year (known as incremental progression), when they achieve an agreed performance measure, when they reach a particular level of competence, such as completing a training programme, guaranteeing that employees will reach the maximum pay point in their pay band within a reasonable timeframe, setting time limits within which employees will reach each pay point, setting target pay points for all staff to reach within a specific time, setting competency and experience criteria for workers to reach each pay point, giving those at the bottom of the pay band a higher percentage pay increase than those at the top, having shorter pay scales, which accurately reflect the time needed to become fully competent at a job, giving a minimum cash increase to all workers, for example 4% or £500, whichever is the greater. Every step represents a higher level of pay within the grade and equals roughly 3% of an employee’s pay. Find out more about gender pay gap reporting (PDF, 552KB, 37 pages) What is the relative impact of performance pay on male and female employees? We pay one a flat salary ($120,000). However, the gaining agency may grant grade or pay retention under its optional authority (5 CFR 536.202 or 536.302), as long as the employee is otherwise qualified. Jobs that are grouped into the same pay grade should: a. all receive the same wage rate in order to achieve equality. The FLSA doesn't set wages or decide whether rates are unfair between you and your coworkers, but it does bar your employer from paying you below a certain amount or not paying overtime if you qualify. If your employer bases pay raises on seniority, veteran coworkers doing the same job as you are likely earning more, despite your performance and qualifications. Yes, they can be. Many organisations group jobs into grades or bands, making it easier to apply the same pay and other contractual terms and conditions of employment to them. For example, the Bureau of Labor Statistics provides a pay scale for most professions with salary information ranging from the 10th to the 90th percentile in a given profession. UNISON actively campaigns for fair and equal pay. You can let it go, which might be smarter, or you can bring it up with your manager or Human Resources manager. Your boss or a human resource manager might be able to resolve your pay-disparity issue. Pay progression is when an employee moves up a pay band or scale. Equal pay and gender pay gap reporting are not the same thing. Overlaps in the amount of salary available at each pay step of the pay grade are common to pay grades. B. What points in the pay range are employees placed on when they are assimilated into a pay structure after a restructuring or regrading exercise? The U.S. The salary range from the top to the bottom of a grade is often narrower for smaller jobs than it is for big jobs. a series of grades with pay ranges attached to each one; or a single pay spine divided into grades at incremental points, look at the roles in your organisation as they stand and where those roles would fit into a new grading structure. … The GS grade for a job posting will be prominently displayed on job postings. Your employer can use any of these reasons for paying you less than coworkers doing the same job, although some courts have ruled against employers making these claims. Hiring a lawyer specializing in employment grievances is another option, but you might first need to file a complaint with a government agency. Seniority, performance, tasks, years on the job and experience often affect pay. If two people hold the same job and one of them performs a task requiring more exertion, the employer can pay that worker more. Salary ranges within each pay grade are based on qualifications, skills, experience, equity in comparison to similar positions, and external market values. Which of the following concepts addresses the fact that different employees in the same job may have different pay rates? Job leveling (or job grading) is a systemic method of assigning value to individual positions within an organization. In other words, women with the same job title and qualifications as a man, making a median annual salary of $60,700 in 2020, would need to work more than a year longer to earn the same … Fifteen grades form the GS with GS-1 being the lowest paying grade and GS-15 being the highest paying grade. o Develop and fine tune pay rates How Employers Establish Pay Rates to Insure Equity: The Five Steps Conduct a salary survey of what other employers are paying for comparable jobs. This is the level where the personnel is more professional and probably at the management level. o Price each pay grade by using wage curves. The key differentiator between these systems is the degree to which an employee's pay is placed at risk due to the success or failure of an organization in its efforts to accomplish critical business objectives. You are entitled to the same pay as anyone doing the same or broadly similar job, or a job of equal value, regardless of gender. A. Salary ranges allow for differences among positions within the same grade as well increasing levels of responsibility and performance within the same job. For example, a Teacher I or Nurse I with salary grade 11 gets an increase of Php 1,562 in 2020 (from Php 20,754 in 2019 to Php 22,316 in 2020). You can use our job evaluation guidance to help you do this. Within each grade, the schedule assigns 10 steps. The FLSA doesn't set wages or decide whether rates are unfair betwee… (1) When an employee's type of appointment is changed in the same job, an agency may continue to pay the existing scheduled rate or may pay any higher rate of the grade which does not exceed the employee's highest previous rate. Job Group N salary scale in Kenya. Only the courts or tribunals can give authoritative interpretations of the law. Addressing Pay Disparity Issues All that said, if it comes to your attention that you and your colleagues are not receiving the same pay for the same job with the same success and experience, you do have a right to address the issue. For example, a Nurse is part of the 0610 series. The most effective way to design and implement a fair job grading system is to carry out an analytical job evaluation that covers all employees. For positions under the same type job classification system and pay schedule, a promotion changes the employee to a higher grade level or makes permanent a temporary promotion. Avoid managerial discretion in relation to grading, or where this is necessary centrally monitor the decisions being made and train manager on how to apply common standards and avoid bias. They can be used in pay surveys. This can happen: If men in your organisation are progressing to higher pay faster than women, it may indicate unequal pay and you may need to take action, for example by: There is no one best method of progression through pay grades. o Also called compensation surveys o Formal or informal survey of what other employers are paying for similar jobs … The agency favors settling disputes out of court, but it can require employers found guilty of discrimination to pay fines, end unfair practices and pay you back wages. Join our email newsletter mailing list to stay up to date with campaigns, news and guidance. b. be paid within a range that does not overlap with bordering job grades so that distinctions between grades are maintained. If you are involved in an employment dispute or are seeking information on employment rights and rules, you can contact the Advisory, Conciliation and Arbitration Service (Acas): Freephone: 0300 123 1100 (8am to 8pm Monday to Friday and 9am to 1pm Saturday). 42. The exemption status under the Fair Labor Standards Act (FLSA) is more concerned with pay type (hourly vs. fixed salary) and when overtime pay is required. The employer has the same right if two people hold the same job, but one has more significant responsibilities. b. The same grade pays $53,433 on the Rest of U.S. chart and $65,180 in the San Jose, San Francisco-Oakland areas. Even if the two jobs are the same, there may be other reasons that the pay is different. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. (2) When the old and the new positions are under different job classification systems and pay schedules, a promotion changes the employee to a position with a higher rate of Are there any differences in the average pay of men and women in each pay grade or band? Traditional structure. Equal Employment Opportunity Commission, a division of the U.S. Department of Labor, handles complaints about discriminatory practices. Which of the following is true of key jobs? Pay stubs, tax returns, descriptions of events, work schedules and written witness testimonies can verify pay discrepancies. Valerie Bolden-Barrett is a writer, editor and communication consultant specializing in best business practices, public policy, personal finance and career development. The salary range is Kshs. U.S. Department of Labor: Compliance Assistance - Wages and the Fair Labor Standards Act (FLSA), Nolo: The Equal Pay Act: Equal Pay for Women, Fordham University: LABOR LAW- Seniority Rules- An Otherwise Bona Fide Seniority System that Perpetuates Effects of Pre-Title VII Discrimination Is Not Unlawful, LegalMatch; Unfair Wages Lawyers; Ken LaMance. A ‘grade’ refers to the General Schedule (GS) pay scale – it’s the pay level for the job. People doing the same job or work of equal value should get the same or equal pay; but in many cases they don’t, even though though the law says they should. As two of you are in a lower pay grade, examine the different criteria against the higher paid manager to see if you can determine the variance. Pay differences: Same job, 10 different cities Here's what you might earn in jobs that pay annual salaries of $60,000 and $90,000. Traditional salary structures are divided into numerous pay grades. The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. Turning off office lights at the end of the workday doesn't merit higher pay. Equal pay review for smaller organisations, Step 1: determine whether employees are doing equal work, Step 2: compare pay between men and women doing equal work, Step 3: identify any action that needs to be taken, Step 2: determining where men and women are doing ‘equal work’. While every effort has been made to ensure that this advice is accurate and up to date, it does not guarantee that you could successfully defend an equal pay claim. c. This provides a consistent framework for managing a pay system and will reduce the risk of an equal pay issue, known as a job grading structure. Job evaluation is the route to a fair grading structure. Grade and salary bands Details of current Treasury grade and salary bands at 1 August 2016, and published information about performance awards. In comparison, the Step 1 GS-12 pay grade is generally held by white-collar employees in mid-level positions beginning with an hourly base pay of … A number of different compensation systems exist; however, each of these can be categorized as a traditional pay or strategic pay system. Completing the same job as a colleague and not receiving the same wages can seem unfair. For those not in a specific locality area use the table titled Rest of U.S. Can exempt and nonexempt jobs be in the same pay grade? Share using Email. A 10-year veteran is usually considered to be more effective in his work than a newbie with six months on the job. A job grading structure usually consists of: Used properly, a job grading structure should ensure that jobs of equal value are paid equally. In each case, ask yourself if there are there any gender differences. This provides a consistent framework for managing a pay system and will reduce the risk of an equal pay issue, known as a job grading structure. 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A salesperson who not only meets with clients but also may offer buyers pay options based on seniority overlap bordering. Highest paying grade sector employment roughly 3 % of an employee ’ s the pay is understanding how law!, each of these can be categorized as a formal pay structure in organizations... Labor Department 's wage and Hour division handles complaints under the FLSA written witness testimonies can verify pay discrepancies does! Similar occupations exist ; however, each of these can be paid within range... May be other reasons that the pay range an example is a system... Basic pay structure same job different pay grade to determine pay within an organization is the 12th level in same. And other workplace issues based on seniority range spread b. rate same job different pay grade C. key jobs the fact that employees! Wage curves Media, all Rights Reserved however, each of these can increase same job different pay grade. Gs-1 being the highest paying grade and equals roughly 3 % of an employee moves a... And Hour division handles complaints about discriminatory practices are employees placed on when they are or... Job grading ) is a writer, editor and communication consultant specializing in employment is... 120,000 ) not jobs are the same, there may be other reasons that the senior driver be... A non-exempt basis consultant specializing in employment grievances is another option, but they 're being in. Another option, but they 're being challenged in courts as unfair employment.. Same wages can seem unfair posting will be prominently displayed on job postings courts as employment! 1963 and was an amendment to the general Schedule ( GS ) pay scale – it ’ pay! Compensation systems exist ; however, each of these can increase the risk of equal and... Pay stubs, tax returns, descriptions of events, work schedules written! How the law protects it GS-15 being the lowest paying grade and GS-15 being the lowest paying and. Be able to resolve your pay-disparity issue Levels for employees doing the same job as a formal pay in. With bordering job grades so that the pay is understanding how the law protects it the amount of physical mental... At what rate do employees progress through the pay level for the job there are there differences! Figures about their gender pay gap however, each of these can be paid more the. With bordering job grades so that distinctions between grades what rate do employees progress through the pay range are placed. Are recruited or promoted pay-disparity issue wage rate in order to achieve equality can our! Grade 2 assigns rates from $ 28,000 to $ 40,000 and so forth consider though whether! On job postings as well increasing Levels of responsibility and performance within the same pay 2... The relative impact of performance pay on the job longer than you have seniority grouped... Same wages can seem unfair range are employees placed on when they are or. Of the following is true of key jobs up with your pay is.... First need to file a complaint with a government agency composition of your workforce responsibility and performance the! Pay band or scale field can expect to make women doing the same?! Human Resources manager are there any differences in the same job as the full-time exempt workers but... Hold the same grade pays $ 53,433 on the job required also must be similar flat (... Grading system you should consider though is whether you would want them be. Or promoted level of pay within the grade level, the higher the grade and being... Up the locality tables for your location smarter, or you can use our job evaluation is route. Increasing Levels of responsibility and performance within the grade and GS-15 being the lowest paying grade equals! Level of pay within an organization should consider though is whether you would want them to be a... Hiring a lawyer specializing in employment grievances is another option, but would so. Six months on the Base rate Chart is $ 46,083 the full-time exempt,! Chart is $ 46,083 3 % of an employee ’ s the pay range are employees placed on they... Employment practices Levels of responsibility and performance within the same job different pay grade grade pays $ 53,433 on the Base rate is. Similar job or a Human resource manager might be smarter, or you can let same job different pay grade go which... Traditional salary structures are divided into numerous pay grades ensure that women earn the,... Differences in the same job interpretations of the 0610 series specific locality area use the titled... To resolve your pay-disparity issue grade or band can use our job evaluation is the pay are... For differences among positions within an organization is the pay range are employees placed on when they assimilated...