Paying family member higher wage

Jayhawk

We currently have an issue at our company that has been brought to my attention regarding a new hire and her wage. This new hire is related to the president of the company and has been hired to do the same job as four others who are all paid the same starting wage. The president has requested that his relative start at a higher wage. She has the same qualifications as the others. We have a salary matrix that we usually follow. Does anyone see any legal issues that may arise if others find out that she is making a higher wage for doing the same job with the same qualifications...or can we pay her whatever we want? Any discrimination issues? Any feedback that can be given would be most helpful! Thanks.

Don D

Do I see any discrimination issues? I see nothing BUT discrimination issues. She is receiving favorable treatment because of her relationship to the executive. A terribly inadvisable decision! If a charge develops, the challenge to the company will be to prove to the EEOC that the different treatment is not a result of sex, race, age, handicap, religion or ethnicity. I suppose he can easily prove he's paying her more simply because she's his relative. It is more-favorable treatment and discrimination, but probably not ILLEGAL discrimination. Just rather stupid. Is the man blind? Advise him quickly of the jar full of downsides.

sonny

"Rather stupid" is a bit of an understatement. I agree strongly with Don. I would avoid doing this at all costs

System

Sometimes upper management are convinced that co-workers dont discuss wages with eachother. At one point my finance mgr. thought we could fire people for doing so. After help from this site I convinced him otherwise.
Maybe this guy just doesn't get the reality that this discrepency will surely get out. If you convince him of that maybe he'll change his mind.
Even if the relative doesn't blab IT WILL get out!

Don D

Even if it doesn't 'get out', Jayhawk and the other HR staff will have to deal with it going forward....knowing the man they work for is unscrupulous. I suggest voicing your disfavor with this and using the Forum feedback for support if needed.

HRsage

I agree, don't give the higher wage. In fact I would be reconsidering hiring this person in the first place. If the president is already giving preferential treatment in the matter of wages, what is going to happen if you have to deal with any disciplinary issues in the future? If you must hire the person then inform them that this is the hiring rate- take it or leave it- of course in a more appropriate manner than I'd like to say it in. Just my thoughts.