A recent online article reported that two seventeen-year-old employees were fired from a Kansas City pizza joint for talking about their pay rates. Both were new employees with the same experience, and the female employee discovered she was earning $0.25/hour less than her male co-worker. When she contacted her employer for an explanation, she was fired for discussing wages with a co-worker, as was the male co-worker. The employer advised that discussing pay was against employer policy, even though both employees stated that such policy was never disclosed to them.
The beginning of a new year is the usual time for owners, managers, HR and payroll professionals to work on their compensation planning. The objective of compensation planning is determining what to pay employees to entice them to continue to work for your company.