Wage Differentials - Telecommuting vs. Office

JCInfo

I'm having difficulty getting information and am hoping that someone on the forum can direct me. I've looked on the dol.gov website, SHRM, & here, but am not finding much so far.

Our company is based in MD, but we have a dept that has a 2 positions that can be completed either in the office or in a home office. Same job, same requirements, etc.

For those employees who work from home, we provide the equipment, reimburse for internet & phone connections & misc supplies.

Recently, there has been discussion on paying those individuals who work from home a lower salary than those who report to the office. The reason given was that those who work from home don't have the commuting expenses.

In addition, there has been discussion on providing those employees who work in the office access at home as well-which brings up the question on whether or not we should now reimburse them for phone/internet connection.

Can anyone point me to information on wage differentials & business reasons behind them for telecommuting employees being paid less than office employees doing the same job?

I realize there are other issues as well-so any thoughts are welcome.

Thanks!

HRinVA

I haven't come across anything indicating that teleworkers should be paid less than those that work in the office...IMO, if they are doing the same job and meeting your expectations, why pay them less? The commuting expenses should not be part of the equation...do you pay those with a short commute less than those with a long commute?

(BTW we pay for bus tickets OR provide subsidized parking... that may be something you want to consider.)

Regarding access for those that do not telework, I'd consider the value of providing this and how much time they would use it. We provide blackberry service or pagers as appropriate, but not everything to everyone.

davids

We have always paid telecommuters the same wages as those employees who work in the office. Would you pay an employee who happens to live within walking distance of the office less than the employee who commutes 25 miles? How about different pay for the employee who takes public transportation versus their own vehicle? Or how about different pay for an employee who owns an ecomony car, like a hybrid, versus a Hummer? The next step after this would be paying employees differently based on how many children/dependents they have.

I think you should pay based on the value of the work and the individual's performance.

JCInfo

I agree with the comments from both of you, but when I brought up those reasons myself and said that we really needed a business reason for the pay differential, I received a fair amount of pushback. Basically, the opinion is that:

1. We set the salary range as the employer
2. Multiple benefits to the employees working from home, including 'less cost to them, including wear on the vehicle, gas, etc'
3. Increasing pay to in-house employees because they have to come in to the office
4. Wants to see DOL regs or other information that supports the need to keep salary consistent

I need to be able to present information from a business perspective & not get pulled into an emotional discussion . . .the response I received from my initial questions was fairly emotional.

davids

I don't think you will find any regulation that specifically says that you can't pay employees differently. However, the basis for the difference may leave you susceptible to claims under civil rights or equal pay statutes. You may suddenly realize that most of your telecommuters are mothers (i.e., women) who want to be home when the children come home from school, or older folks who don't want to travel in winter weather. Although your intent was not to discriminate based on gender or age, you may find the result to have a disparate impact.

Again, I think pay should be set using work-related factors. If you are basing pay on the employee's needs/expenses such as less wear of their vehicle, then all of the factors noted in my original response become valid.

Dutch2

Only Reg. I can think of is: The Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964. These prohibit gender-based discrimination in the workplace by requiring equal pay for equal work. Depending on performance and seniority, jobs that have the same functions, similar working conditions and require substantially equal skill, effort, and responsibility must compensate equally. Employers who violate Title VII may be liable for capped punitive and compensatory damages, back pay, attorney and expert costs; employers who violate the Equal Pay Act may incur back pay, liquidated damages, and attorney’s fees. For over 35 years these laws have protected workers against unlawful wage discriminatory practices.
I get the idea that this is not what you are looking for; but, as others have pointed out, it would be easy for other ee's to get the idea that you not complying with equal pay for equal work. I suggest you continue to pay the same for those at work and those at home and then find a means to make adjustments as others have memtioned such as er paid bus tokens, parking etc...
We have two ee's that work from home and they are both on the same pay structure as those in the same positions here at the office.
Good luck.

NaeNae55

I don't think this Act applies as they are not really similar working conditions.

The real question is why are these people working at home? If it is for the company's benefit, then the extras you are paying aren't really for the employee's benefit and should not apply to the equation. No employee should get credit because another employee is benefitting from the company's needs.

If you are just being generous, then you will have a difficult time making your case. If that is indeed the situation, then I suggest you follow the above advice and talk about future consequences. If you pay someone more for the same work because they have commute expenses, where do you draw the line? The person who lives 50 minutes away will soon be comparing themselves to the person who lives 10 minutes away. It is definitely a can of worms you don't want to open.

In my opinion, it would be better to stop giving the home workers all the benefits. They get to work at home so have nothing to complain about, and it will shut the mouths of the commuting complainers.

Good luck!

Nae

HRinVA

Do the employees that currently work in the office have the option to telecommute?

JCInfo

We have certain contracts that require those employees assigned to those contracts work in the office.

Because our applications are internet based & secure, all other employees can work from home.