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Possible Wage Discrimination in CA?

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  • Possible Wage Discrimination in CA?

    Hello,

    There is a manager (Manager 1) who has been with the company for over four years. Originally the employee was hired at $55k before receiving salary increases that now place him annually at $80k. The manager is a member of a protected class, Hispanic.

    Recently, the company has come under new ownership and in reviewing and implementing the new budget, the manager's position is budgeted at $70k so a wage decrease is in order of $10k. The job duties of the position will not change though the position will fall under a different department and manager (manager 2). This is not a demotion or disciplinary measure but simply budgetary. All employees were 'purchased' through an asset purchase agreement from the prior owner and Manager 1 was a part of this purchase, as was manager 2.

    Manager 2 is currently slated at $60k and the budgeted change is to elevate this position to $70k. The manager will now oversee the entire division. Manager 2 is a white, male.

    Manager 1 does not possess the skills to oversee the entire division, as Manager 2 does.

    There is no discriminatory reason for changing Manager 1's pay rate, and the Company does have what it believes to be a valid financial reason for adjusting the salary of Manager 1, but I can't help but feel we are violating something...I just can't figure out what.

    Can you offer any direction in this matter? Also, am I correct in understanding that any vacation pay on file should be paid out at the higher pay rate vs. the new pay rate.

  • #2
    job discrimination?

    I'm not sure on this one. The company sold and has new ownership, correct? Therefore the employees were basically fired/layoffed. There was a restructure and each position was given a wage and job duty assignment. Then the employees could put in applications for the positions and were hired depending on their qualifications? If that is the case then there is no discrimination. I guess it depends on the terms of the sell.

    Regards,
    Mandi
    www.laborlawtalk.com

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