Are employers allowed to pay employees differently based on their job duties?

Yes, employers in Massachusetts are allowed to pay their employees differently based on their job duties. This is because Massachusetts’ wage and hour law allows employers to pay their employees based on the “fair and reasonable value” of their work, and the job duties of each employee dictate the value of their services. For example, an employer may choose to pay an employee who works in a managerial position a higher wage than an employee who works in an entry-level position. This is because the managerial position may require more skill or responsibility and thus has a greater value. Similarly, two employees in the same position may have different job duties, such as one employee focusing solely on customer service and the other employee also focusing on inventory maintenance. So, if the combined duties of the first employee have a higher value than the second employee, the employer can pay them differently. However, when determining an employee’s wage, an employer must follow state and federal wage and hour laws, including minimum wage, overtime pay, and other wage regulations. Employers are prohibited from paying their employees less than the minimum wage. When setting wages, employers must also adhere to the requirements of the state’s equal pay act, which prohibits employers from paying employees of one gender more than those of the opposite gender for “comparable work”. This means that while employers usually have the right to pay employees differently based on the duties of their jobs, they cannot set wages on the basis of gender, race, or other prohibited factors.

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Are employers allowed to pay employees differently based on their job duties?

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