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Lowering a pay rate

SystemSystem 5,885 Posts
in Compensation Vote Up0Vote Down
I received a request for information from one of our retail managers about lowering a hourly employee's pay rate that I need help with. The employee was brought on by a COO, that is no longer with the company, at a higher rate than other employees with more responsibilities. The employee has been with the company approximately 1 1/2 years and receives benefits. The manager does not want to terminate the employee as he is not a problem, just not as quick or "upwardly mobile" as most others. I should note in the safe harbor of this discussion that the employee is 20-30 years older than the rest of the staff. I have never heard the manager mention the employees age, but I wonder if the employee will be sensitive to this factor. Anyone have experience or knowledge that can help me navigate this situation?
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Comments

  • 3 Comments sorted by Votes Date Added
  • sanuasanua 13 Posts
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    I'm sure the employee WILL be sensitive to the age factor if the manager lowers his wages and might feel that he is being discriminated against because of his age. What do you mean by "upwardly mobile" -- does he not have the skills that the others have?? Normally a employee's wages are not lowered just because he was hired in above what others are making. If you have a range for the position and he's at the high or above you could consider freezing his wages, but to actually lower them could be tricky because he'll probably claim discrimination. Of course, it is LEGAL to lower the wages if you're not doing it for a discriminatory reason, but you might have to prove that.
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  • SystemSystem 5,885 Posts
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    Thank you for replying, I used the term "upwardly mobile" because the manager does not percieve the employee to have the quality of skills to move up in the ranks. I like your point of view on the idea of freezing the wage, in fact it has been frozen from the onset!
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  • Don DDon D 9,834 Posts
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    Anything determined to be punitive could backfire on you. Dismissing him, lowering his wage, freezing his wage or demoting him, could all be problematic if he claims illegal action regarding the terms and conditions of his employment. I'm not sure it's a good idea to 'go after' people who were hired in with a wage favoritism by a prior manager. Your gripe may be with the prior manager, not the incumbent.
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