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Equity Increase v. Cost of Living Raise

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  • Equity Increase v. Cost of Living Raise

    Hello - I am having an issue with choices made by our head of staff and would love some advice! One of our employees (Mike) expects both an Equity Increase and Cost of Living Raise and I agree with him. Mike was 'promised' by our head of staff an equity increase to go hand in hand with his title change. Mike was told that within 4 weeks he would be told the exact title change and equity increase amount. However, the head of staff put him off after 4 weeks went by and then later unexpectantly announced to all staff that everyone would be getting a Cost of Living increase. Mike will receive a 9.2% cost of living raise which is the percentage anyone on staff would receive if they hadn't any raises since 2014. Now the head of staff is denying Mike the equity increase. This feels really disrespectful to Mike in many ways. BTW Mike has had 3 "Outstanding" reviews in a row - reviews written by the head of staff. There is no salary schedule or consistent salary plan in place for those with great reviews - it's always up to the head of staff which ends up getting tiring for employees.

    Please let me know your thoughts if you have any either way about this. Thank you!

  • #2
    Nothing you have stated is illegal. The head of staff never promised Mike both raises but I can see why Mike thought he might get both.


    • #3
      This falls into the category of "unfair but not illegal". There are unfortunately no laws that Mike (or you) can invoke to force the head of staff to honor his promise. It's a shame and it's not a good way to do business and it may come back to bite him in the backside someday, but it's legal.

      Are you in a position to put a salary schedule in place, or at least to recommend one?
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.