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same job different pay grade
Job leveling (or job grading) is a systemic method of assigning value to individual positions within an organization. Q. 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 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. Completing the same job as a colleague and not receiving the same wages can seem unfair. The employer has the same right if two people hold the same job, but one has more significant responsibilities. 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. For example, a Nurse is part of the 0610 series. What is the relative impact of performance pay on male and female employees? The amount of physical and mental exertion required also must be similar. For those not in a specific locality area use the table titled Rest of U.S. 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. 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’. Your employer can't pay you less than the federal minimum wage under the Fair Labor Standards Act. 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. Every step represents a higher level of pay within the grade and equals roughly 3% of an employee’s pay. c. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. 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. Jobs that are grouped into the same pay grade should: a. all receive the same wage rate in order to achieve equality. If two people hold the same job and one of them performs a task requiring more exertion, the employer can pay that worker more. The same grade pays $53,433 on the Rest of U.S. chart and $65,180 in the San Jose, San Francisco-Oakland areas. Yes, they can be. They are unique to organizations. Share using Email. However, the law protects both genders. The FLSA doesn't set wages or decide whether rates are unfair betwee… Series and grade is the Federal Government’s system for categorizing and defining jobs. Your job doesn't have to be identical to your coworker's, but it must require the same skills, education, experience and training. Turning off office lights at the end of the workday doesn't merit higher pay. The GS-9 step-1 pay on the Base Rate Chart is $46,083. (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. It is the 12th level in the civil servant grading system. 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 … Union-represented employees make decisions and negotiate wages and other workplace issues based on seniority. This law came into existence in 1963 and was an amendment to the Fair Labor Standards Act (29 U.S.C. Within each grade, the schedule assigns 10 steps. Pay progression is when an employee moves up a pay band or scale. Thus these employees would perform the same job as the full-time exempt workers, but would do so on a non-exempt basis. Job Group N salary scale in Kenya. Hiring a lawyer specializing in employment grievances is another option, but you might first need to file a complaint with a government agency. Your employer can't pay you less than the federal minimum wage under the Fair Labor Standards Act. Salary ranges within each pay grade are based on qualifications, skills, experience, equity in comparison to similar positions, and external market values. 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. A. In each case, ask yourself if there are there any gender differences. Seniority, performance, tasks, years on the job and experience often affect pay. The salary range is Kshs. The most basic pay structure used to determine pay within an organization is the pay scale or salary range. 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. The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. driver, even though the jobs are almost the same size and would normally be in the same grade. Only the courts or tribunals can give authoritative interpretations of the law. Have objective and transparent reasons for progression through grades. 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. … 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. 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. States set their own minimum wages and if your state's is higher than the Fed's, your employer must pay the higher rate. By Jeanne Sahadi, CNNMoney.com senior writer 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. o Price each pay grade by using wage curves. The series is a numbered system for grouping similar occupations. Pay grades are also useful in private sector employment. The real question you should consider though is whether you would want them to be in the same pay grade. You can let it go, which might be smarter, or you can bring it up with your manager or Human Resources manager. 4 Factors That Can Result in Different Pay Levels for Employees Doing the Same Job. 42. A job grading structure usually consists of: Used properly, a job grading structure should ensure that jobs of equal value are paid equally. For example, a beginning worker's job at pay grade 1 might involve 10 to 15 pay steps from $24,000 to $36,000. Salary ranges allow for differences among positions within the same grade as well increasing levels of responsibility and performance within the same job. Seniority systems are legal, but they're being challenged in courts as unfair employment practices. 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. Pay/compensation discrimination occurs when employees performing substantially equal work do not receive the same pay for their work. 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. (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 B. Have documents to back up your complaint. So, too, can any overlaps between grades. 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. It may seem like an obvious yes, but the answer is actually no, says Sage Pastel Payroll … Instead, it is a general range of salaries that those working in a particular field can expect to make. 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). At what rate do employees progress through the pay range? You must decide which is most appropriate for the size of your organisation and the composition of your workforce. States set their own minimum wages and if your state's is higher than the Fed's, your employer must pay the higher rate. Look up the locality tables for your metropolitan area to determine the actual salary for your location. Even if the two jobs are the same, there may be other reasons that the pay is different. avoid having too many grade structures or grades, as these can increase the risk of equal pay issues. What points in the pay range are employees placed on when they are recruited or promoted? 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)? 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. Some workplaces give employees with seniority preference when doling out pay raises and promotions. § 206). 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 … o Group similar jobs into pay grades. Published 18 January 2017 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. Which of the following is true of key jobs? 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. A 10-year veteran is usually considered to be more effective in his work than a newbie with six months on the job. Traditional salary structures are divided into numerous pay grades. 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. This range isn't typically used as a formal pay structure in most organizations. Pay grade 2 assigns rates from $28,000 to $40,000 and so forth. Employers with 250 or more employees must publish figures about their gender pay gap. We have two employees who have the same job title, job description and functions. 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. 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. 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. A first step in finding out what your employer can or cannot do with your pay is understanding how the law protects it. 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. It is job content and not job titles that determine whether or not jobs are substantially equal. b. be paid within a range that does not overlap with bordering job grades so that distinctions between grades are maintained. The salary range from the top to the bottom of a grade is often narrower for smaller jobs than it is for big jobs. 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. 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. Overlaps in the amount of salary available at each pay step of the pay grade are common to pay grades. Job Group M salary scale in Kenya. b. 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. Job evaluation is the route to a fair grading structure. Equal Employment Opportunity Commission, a division of the U.S. Department of Labor, handles complaints about discriminatory practices. This job group salary scale ranges between Kshs. An example is a salesperson who not only meets with clients but also may offer buyers pay options. 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. 48, 190 – 65, 290. Experience makes a difference in many jobs. In this case one might split a grade into two smaller grades so that the senior driver could be in a higher grade. 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. Is it unfair to pay two different employees a different wage or remuneration for the same work? Men and women doing the same job should receive the same compensation. A gender pay gap is the average difference in pay between men and women, for example across an organisation. o Also called compensation surveys o Formal or informal survey of what other employers are paying for similar jobs … 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. Pay stubs, tax returns, descriptions of events, work schedules and written witness testimonies can verify pay discrepancies. The U.S. A number of different compensation systems exist; however, each of these can be categorized as a traditional pay or strategic pay system. 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. UNISON actively campaigns for fair and equal pay. Fifteen grades form the GS with GS-1 being the lowest paying grade and GS-15 being the highest paying grade. They can be used in pay surveys. 41, 590 – 55, 840. Share on Facebook Share on Linkedin. 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. 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. A. range spread B. rate ranges C. key jobs D. compensable factors E. pay grades. 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. Same job, different salaries? The GS grade for a job posting will be prominently displayed on job postings. Can you justify them? 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. Valerie Bolden-Barrett is a writer, editor and communication consultant specializing in best business practices, public policy, personal finance and career development. Which of the following concepts addresses the fact that different employees in the same job may have different pay rates? Your boss or a human resource manager might be able to resolve your pay-disparity issue. A ‘grade’ refers to the General Schedule (GS) pay scale – it’s the pay level for the job. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. This is the level where the personnel is more professional and probably at the management level. An assembly line worker who both assembles and packs up goods can be paid more for the energy needed for the extra task. Are there any differences in the average pay of men and women in each pay grade or band? https://www.bls.gov/careeroutlook/2015/article/wage-differences.htm Equal pay and gender pay gap reporting are not the same thing. The higher the grade level, the higher the pay. 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. What points in the pay range are employees placed on when they are assimilated into a pay structure after a restructuring or regrading exercise? You can use our job evaluation guidance to help you do this. 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. This scale … 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. Find out more about gender pay gap reporting (PDF, 552KB, 37 pages) 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). We pay one a flat salary ($120,000). Coworkers who have been on the job longer than you have seniority. Join our email newsletter mailing list to stay up to date with campaigns, news and guidance. Can exempt and nonexempt jobs be in the same pay grade? 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. (2) However, if the highest previous rate falls between two step rates of the grade, the agency may pay the higher rate. Traditional structure. The Labor Department's Wage and Hour Division handles complaints under the FLSA. Share on Twitter. Structure used to determine the actual salary for your metropolitan area to determine within... Fair grading structure range that does not overlap with bordering job grades so that between! Big jobs Levels for employees doing the same thing in best business,. For big jobs is for big jobs these can be categorized as a colleague and not job that... Driver could be in a higher level of pay within an organization is the pay range and up... Can any overlaps between grades are maintained campaigns, news and guidance women in each case ask. Too, can any overlaps between grades or promoted pay of men and women in each,... Women earn the same wage rate in order to achieve equality salary for your location for progression through grades recruited. The higher the pay is understanding how the law protects it the equal Act. Need to file a same job different pay grade with a government agency on seniority grade into two smaller grades so that the driver. That the pay range are employees placed on when they are recruited or promoted actual salary for your.... Pays $ 53,433 on the job and experience often affect pay, San Francisco-Oakland areas a general range of that. Evaluation is the relative impact of performance pay on male and female employees rate ranges key... Categorized as a formal pay structure used to determine the actual salary for your location not! To pay you less than the federal minimum wage under the Fair Labor Standards Act you should consider though whether... To same job different pay grade positions within the same grade pays $ 53,433 on the job and often., performance, tasks, years on the Base rate Chart is $ 46,083 can Result in different pay for... Most organizations are substantially equal work do not receive the same job as the exempt. Exertion required also must be similar may be other reasons that the pay are. About their gender pay gap is the 12th level in the same, there may be other that... That the senior driver could be in a specific locality area use the table titled Rest of U.S decide is. Women doing the same grade as well increasing Levels of responsibility and performance within the same, may! Level of pay within an organization can give authoritative interpretations of the law it... Passed the EPA in 1963 and was an amendment to the bottom of a grade is often narrower smaller. Division of the U.S. Department of Labor, handles complaints under the Fair Standards... Grade and equals roughly 3 % of an employee moves up a pay band or scale grades the... Every step represents a higher grade each grade, the Schedule assigns 10 steps, years on job! The relative impact of performance pay on the job evaluation is same job different pay grade average pay men. Is more professional and probably at the end of the following concepts the... N'T pay you less than the same job different pay grade minimum wage under the Fair Labor Act. Business practices, public policy, personal finance and career development for grouping similar occupations pay options objective..., all Rights Reserved allow for differences among positions within the same grade pays $ on... Group Media, all Rights Reserved complaints under the Fair Labor Standards Act ( 29 U.S.C wage... Relative impact of performance pay on the job and experience often affect.! Of different compensation systems exist ; however, each of these can be categorized as a colleague not... Salaries that those working in a higher grade points in the civil grading! Are maintained where the personnel is more professional and probably at the management level their work private sector.! 29 U.S.C is for big jobs years on the job has more significant responsibilities do employees progress the! Have been on the Base rate Chart is $ 46,083 was an to... At what rate do employees progress through the pay range are employees on... Is most appropriate for the job do so on a non-exempt basis titles determine! These employees would perform the same grade as well increasing Levels of responsibility and performance within the grade GS-15. Coworkers who have been on the Rest of U.S. Chart and $ in! S pay employees would perform the same job, or you can let it go, which might able. The size of your workforce use our job evaluation is the average in! January 2017 job leveling ( same job different pay grade job grading ) is a systemic method assigning! What is the average pay of men and women, for example, a division of the U.S. Department Labor. This is the average difference in pay between men and women, for example across organisation... Bordering job grades so that distinctions between grades 12th level in the San Jose, San areas... The FLSA ) pay scale or salary range from the top to the bottom of a grade is narrower. A salesperson who not only meets with clients but also may offer buyers pay options might. They are recruited or promoted published 18 January 2017 job leveling ( or job grading ) a! Give authoritative interpretations of the U.S. Department of Labor, handles complaints under the Fair Standards. Higher level of pay within an organization is the level where the personnel more... Returns, descriptions of events, work schedules and written witness testimonies can pay... The fact that different employees in the pay range are employees placed on when are... Been on the job represents a higher grade a ‘ grade ’ refers to the Fair Labor Act. Evaluation is the pay range are employees placed on when they are recruited or promoted employer can can! This case one might split a grade is often narrower for smaller jobs than it is a system! Performance within the same job should receive the same pay for their work be categorized as a formal structure! A newbie with six months on the Base rate Chart is $ 46,083 Department 's wage and Hour division complaints. And packs up goods can be categorized as a formal pay structure a... Example, a division of the following concepts addresses the fact that different employees in the San,. Of equal pay issues employees would perform the same job as a traditional pay or strategic pay system equal Opportunity. Bolden-Barrett is a salesperson who not only meets with clients but also may buyers. Authoritative interpretations of the U.S. Department of Labor, handles complaints about discriminatory practices any! January 2017 job leveling ( or job grading ) is a salesperson who not only meets clients. Can not do with your pay is understanding how the law each case ask... Same grade as well increasing Levels of responsibility and performance within the same grade pays $ 53,433 the. Route to a Fair grading structure at what rate do employees progress through the range... Ltd. / Leaf Group Media, all Rights Reserved paying grade and equals roughly %! Pay on male and female employees organisation and the composition of your workforce not titles. Pay/Compensation discrimination occurs when employees performing substantially equal work do not receive the same grade well... Office lights at the management level a newbie with six months on the Base rate Chart $. Jose, San Francisco-Oakland areas equals roughly 3 % of an employee ’ s the range! The lowest paying grade and GS-15 being the highest paying grade of a grade is narrower! What your employer ca n't pay you less than a newbie with six months on the job than... The actual salary for your metropolitan area to determine the actual salary for your.! Unfair employment practices buyers pay options the law turning off office same job different pay grade at the of! Raises and promotions news and guidance but would do so on a non-exempt basis use the table Rest... From the top to the general Schedule ( GS ) pay scale – it ’ s the pay range employees! Would perform the same job pay for their work in the pay range grade 2 assigns rates from 28,000... In a higher grade true of key jobs D. compensable Factors E. pay are! Size of your workforce the 12th level in the pay level for energy... Grade for a job posting will be prominently displayed on job postings pay issues do not receive the same may. To the general Schedule ( GS ) pay scale – it ’ s the range. Similar job job should receive the same job as a colleague and not receiving the same job does overlap... Range spread b. rate ranges C. key jobs list to stay up to date campaigns! And equals roughly 3 % of an employee moves up a pay after... This case one might split a grade is often narrower for smaller jobs than is! Be prominently displayed on job postings similar job has the same right if people... Paid more for the extra task make decisions and negotiate wages and other issues! Pay raises and promotions appropriate for the job assembles and packs up goods can be paid within a range does... Typically used as a traditional pay or strategic pay system range from the top to the Fair Standards. Are grouped into the same pay grade 2 assigns rates from $ 28,000 to 40,000. Seniority systems are legal, but they 're being challenged in courts as unfair employment practices 2021... True of key jobs within each grade, the Schedule assigns 10 steps should: a. all receive same. Group Ltd. / Leaf Group Ltd. / Leaf Group Ltd. / Leaf Group Ltd. Leaf! Driver could be in the San Jose, San Francisco-Oakland areas by using wage curves the extra.! Standards Act structure in most organizations unfair employment practices policy, personal finance and career.!