Equal compensation?

Equal compensation?

I began employment with my company in March, 2022 as a result of an acquisition. I was placed in a similar financial operations manager position, with the same salary I had at the acquired company. I have since discovered that my salary is about $34k below the mid-range for the pay grade I’m in. My boss stated there isn’t an opportunity for a comp adjustment outside of performance review time, but she really appreciates my hard work! HR says salaries are between employee and leader.

After hiring an employee myself, there is no way a new hire would be offered a salary so far below market. I have two male peers who were hired “normally” (not part of this acquisition). I don’t know their salaries, but I can’t imagine they’re as low as mine.

Do I have cause to reach out to the EEOC? Should I tell my employer I’m doing that? I’m scared of retaliation on top of everything else.

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9 Comments

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  1. Kristie White

    First, this is not an EEOC issue. The EEOC deals with legal issues and an organization has the right to pay you any amount they choose above minimum wage. What sets the compensation range is the market and this is a "pay equity" issue, i.e. ensuring that like positions are paid similar pay based on the job description and each individual's experience and skill set. So you have - AND SHOULD - lobby for a pay adjustment. I would start by gathering market data on the position you are in by researching various online salary sources such as GlassDoor, Indeed, etc. to see what the current market price is for your position. If your male colleagues were hired while the job market is hot and you were acquired through an acquisition, there is likely a significant inequity between you. But you should also be aware that you do not have the legal right to demand a pay adjustment based on being underpaid. You can lobby for a position review by presenting your data, nagging, escalating the need for pay equity based on current HR policies (there should be a compensation policy/strategy and also look at your organization's values and mission statement to push equitable treatment.) Eventually, if they value you enough, this will pay off. But they can also resist because at present, you are cheaper than the new people they hired. In which case, it will be time for you to test the hot job market and leverage it to realign your pay with current market conditions.

  2. Anonymous

    1)Clarify with HR what your boss can or cannot do to change your compensation in 2022, and whether an early salary review is appropriate. If a change is possible, ask for HR’s assistance in bringing this to the attention of your boss.

    2)I’m not sure that you have an EEOC claim— at least not yet. Is your salary within the range stipulated for your pay grade? If yes, you might not have any recourse before your scheduled review date. If, on the other hand, your salary is *below* the minimum for your pay grade, you do have an immediate cause of action.

    3)I’m not clear from your letter why you feel that you should be paid at the mid-range of your grade, instead of at your current salary. From your employer’s perspective, they are treating you fairly and will re-evaluate your salary on your review date.

    4)Even if your male peers are earning more than you (and that is an “if” that needs to be confirmed), make sure that your job is equivalent to theirs or that yours is senior, and that your credentials are equal or superior. Without confirming this information, you won’t have an EEOC case.

    5)Pursuing an EEOC action against your employer warrants a lawyer’s guidance. If you are successful in proving sex discrimination, the usual outcome is a financial settlement in exchange for your leaving the company under a non-disclosure agreement. Be sure of what you wish to achieve before starting this process. If you want to sue your employer, find the best plaintiff’s side (ie represents the worker) employment lawyer possible. (Your first consultation should be free.) Your lawyer would be compensated with 1/3 to 40% of any financial settlement you win.

    6)From what you’ve described, I’d suggest that you clarify your company’s compensation procedures with HR and your manager, and get an agreement on when you can expect a performance review and salary adjustment. If that process proves unsatisfactory, you can then consider an EEOC filing or looking for a better compensated job.

  3. Heather Cutler

    Excellent and actionable response!

  4. Kimberly G. Smothers

    Agree with this 100%.

  5. Anonymous

    What your company is doing is bit illegal. They are merely paying what they can get away with. You have only been with the company foe 6 months and accepted their offer. The fact that other people negotiated higher packages is perfectly legal. Compensation is subjective and based on many factors. Market factors come into play.

  6. Valerie Rieger

    My guess is that the terms of the acquisition included language around salaries remaining the same post acquisition. M&A activities come with some inequities, especially for the acquired entity. Hopefully, in the integration process, compensation will be looked at and leveled out.

  7. Shelby C

    I have been in this position before and gone to them without emotion. I have done the research (do it on your private time and not their devices) to present my business case as to why my base salary is not commiserate with my experience, education, and expertise in the local market. This is not about what you "want" or "need". Those were always the two biggest mistakes employees would make when they would petition my BOD members for raises. This is about what you DESERVE. This is business. It is not personal. Make your business case and present it.

    Follow the change the change of command.

    I would also see if you could find out how much they would hire you for if they hired you "off the streets" today.

    I would not jump directly to the EEOC quite yet. There are a number of variables and presumptions that would have to be made. You have provided us with inadequate information to make a determination whether that is warranted.

  8. anon3796

    Some companies also have and equity review process. This is worth investigating also. Since it is generally done through HR, remember that HR works for the company and not you. There may be ways to work this out within the company through their own internal processes. Best to your receiving an equitable pay!

  9. Joanna Poe

    This is normal during acquisitions, sadly. I was part of a buyout where almost all of my team was kept around solely because we were so affordable.

    If they don't adjust it up during PR time, ask for an equity raise, and if they make grumpy noises, start looking for new opportunities.

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