Avoiding Legal Trouble

Why Your Business Should Push For Equal Pay

Are your employees getting paid equally for the work they do? Job roles, titles, and descriptions can differ greatly between occupations, but where work done is similar, rated as equivalent, or of equal value, the legal principle of equal pay applies. It's not just basic wages and salaries that are covered, but all forms of compensation, including overtime rates, bonuses, sick pay, reimbursement for travel expenses and hotel accommodations, life insurance, and many more.

Failing to provide equal compensation for all employees increases the risk of equal pay claims against your business. Equal pay claims can hurt your business in so many ways and should be avoided whenever possible. 

Here are some common problems you may face if you fail to provide equal pay to your workforce.

High Cost Of Litigation 

When it comes to equal pay complaints, employees don't have to file a charge of discrimination before they can be allowed to file a lawsuit in a federal or state court. They can go directly to court action, provided they pay attention to filing deadlines.

Depending on the length and outcome of equal pay cases filed against your business, costs can rack up fast. Aside from your own legal fees, you may be required to compensate the claimant for lost pay and even pay for their legal fees. The cost implications of ending up in court due to unequal pay charges can run into several hundreds of thousands of dollars. 

Loss Of Productivity

Facing equal pay charges can lead to low levels of productivity in your business. Businesses that are constantly plagued with equal pay claims tend to have poor employee relations, which results in low staff morale. If your workforce is feeling unhappy and unmotivated, workplace productivity will inevitably suffer.

Ongoing equal pay lawsuits can also divert the attention of your company's top-cadre management away from the most important aspects of your daily business operations, moving away from the company's goals.

Tarnished Reputation 

Equal pay lawsuits will paint your company in a bad light, making customers, shareholders, and even potential employees lose confidence in the company. It may also subject your company to closer scrutiny by federal, state, and local employment agencies. 

Remuneration is one of the major variables affecting employee morale and productivity in the workplace, ultimately contributing to company success. Failing to pay employees equal pay for equal work can have a calamitous effect on your business, so it's important to compensate all employees fairly for work done. Keep these tips in mind when looking for equal pay law firms near you.