They negotiated for more pay, she didn’t: Was it bias?
September 24, 2009 by Sam NarisiPosted in: In This Week's E-Newsletter, Latest News & Views, Law, Salary negotiations
The Ledbetter Fair Pay Act has put pay discrimination claims into the spotlight. Does it mean employers can’t offer higher salaries to woo desirable applicants away from current employers?
No, according to this recent court case — as long as companies document their reasons for pay differences.
An African-American employee learned that she was making less than other, white employees in the same position. She sued, claiming she was given a lower salary because of her race.
The company’s explanation: Higher salaries are often offered to employees who come from other employers to convince them to leave their current jobs. In this case, the two white employees in question were hired from outside and negotiated for higher pay during the offer process. Also, both had received other offers while employed with the company and negotiated for raises at that time.
On the other hand, the African-American employee was promoted to the position, did not negotiate her salary and never told the company about other job offers.
The court ruled in favor of the employer. Since HR had documented the salary negotiation process, the judge agreed there was no discrimination — just the natural effects of a free market.
Cite: Sims v. Burlington Coat Factory Warehouse of Alabama, Inc.
Tags: Ledbetter, pay discrimination
September 25th, 2009 at 12:43 pm
At least the judge understood that negotiation does take place and is a legitimate reason why one employee may be paid more than another. I was once criticized by my boss because a co-worker that shared my office stole a peek at my pay stub to learn I was higher paid to do the same work (I was more efficient and higher profit producer though). The boss blamed me for letting her know I made more. I explained I never spoke of my pay with her and the boss readily stated the co-worker saw my pay stub. It was not left in plain view so she must have opened a drawer and checked it out. I learned never to trust this co-worker again and found that it was best to keep it that way.
September 25th, 2009 at 2:27 pm
I’m assuming she sued under the disparate treatment theory of discrimination. The employer might have lost if she sued under the disparate impact theory. If the company has a common practice of “the squekly wheel gets greased,” that could result in disparate impact against women or other cultures that may be less assertive in the negotiation process.
I read another article a while ago that suggested women are partially to blame for the continued pay disparaty between males and females. We tend to wait for rasies to be awarded based on merit, whereas men tend to be more assertive when requesting raises. I was one of the trend of women who waited, and the article prompted me to ask for a raise for the first time in my career.
October 2nd, 2009 at 5:34 pm
To HR in Ohio – Did you get the raise you asked for? I would love to see a statistic about how often men vs. women get the raises they ask for. I asked for a significant raise last year (before the economy tanked) to bring my salary somewhat close to the range of the admin staff I supervise (they all make in the 75-90th percentile based on BLR salary survey information, I was in the 18th percentile). In our company substantial raises are not uncommon in management positions. I had salary survey information specific to my geographic location for two positions that, combined, pretty well matched my position, as well as job descriptions. I was told that they didn’t think the survey information was accurate and that I really wasn’t the position I thought I was because of one piece that I don’t do. Funny how they can devalue your job because you don’t have one responsibility on a standard job description, and just ignore the 5 additional responsibilities you do have. I’m not sure why they thought the survey (which comes mainly from the Bureau of Labor Statistics) was not accurate – but even if it wasn’t, for that argument to hold, my position would have to be overstated while the admin positions would have to be understated and how likely is that?
I eventually got an additional bump up 6 months after asking (but am still below the 25th percentile) and often wonder if things would have been different if I had been a man dealing with the all male owners of the company.
October 5th, 2009 at 4:17 pm
Stella – yes, I asked my male director and I got the raise that I requested. It felt so unnatural for me. I am of the opinion that my work should speak for itself and a good leader would recognize my results and reward me accordingly. Of course, that’s the ideal world. It doesn’t always work like that in the real world.
I practiced the conversation with my husband and my dad before approaching my director. I didn’t want to come across as the stereotypical aggressive (w)itch. I also didn’t want to appear whiny or too passive and risk not getting what I was worth.
October 9th, 2009 at 12:38 pm
Stella, I am sure that would be the case in some companies (a male dealing with all male owners) but not in my company. I (a male) was given additional job duties and no increase in pay. A female, in the same office, was given additional job duties with a 5% increase. Both of us working for the same male boss all I can figure out is she has breasts and I dont.