Ted Hollis Shares Perspective in HRD Article on Remote Pay Based on Location
Ted Hollis, a Labor & Employment partner based in the firm’s Indianapolis office, provided his perspective on the topic of paying remote employees based on their geographical location in a Human Resources Director article.
While some argue this is necessary based on where an employee lives -- such as California, where the cost of living is much higher -- others believe salary and pay should be based on experience and skill set. However, Hollis provides a different theory about why varied pay could become an issue.
Under Title VII of the Civil Rights Act, there are two ways you can establish a discrimination claim: disparate treatment, which is when an employer outright treats an employee or candidate differently because of that person's race, religion, color, sex, national origin, etc.; and disparate impact, in which a policy that’s neutral on its face is applied in a discriminatory manner.
“For instance, let’s say one area that’s lower paying happens to be disproportionately minority-populated,” Hollis told HRD. “I could see a disparate impact theory claim being brought by an African American applicant or employee, alleging ‘you say it’s geography, but in practice it’s having a negative effect on people based on race.’”