Are employers allowed to pay employees differently based on their experience?

In Washington, employers are allowed to pay employees differently based on their experience. This is known as “differential pay” and is a common practice. The Washington Minimum Wage Act does not prohibit employers from paying employees a higher rate for having more experience or for completing a longer job. According to the Washington State Department of Labor and Industries, differential pay is allowed if it is based on “experience, length of service, or seniority that is objectively and reasonably related to the employees’ job performance or productivity,” and the extra pay is not “based on sex or any other protected category,” such as race, religion or national origin. In other words, employers may not pay employees differently based on such things as gender or age. Employers must still be sure to adhere to the minimum wage law, which states that all employees must be paid at least the state minimum wage. When it comes to differential pay, the state minimum wage becomes the base and all other wages must be higher than it. Employers must also ensure that their differential pay is consistent and lawful. Overall, differentiating employees’ pay based on experience and job performance is a widely accepted practice in Washington. Employers must be sure, however, to pay at least the state minimum wage and to treat all employees fairly and equally, regardless of their protected categories.

Related FAQs

What is the child labor law?
Is it legal to pay workers working abroad different wages than domestic workers?
What are the requirements for providing paid time off?
What workers are not entitled to overtime pay?
What are the rules for paying salary employees overtime?
What are the implications of not complying with wage and hour laws?
What is the difference between salaried and non-salaried employees?
What are the rules for paying overtime for salaried employees?
Is it legal to dock an employee's pay for violating a policy?
What type of records must employers provide to employees about wages and hours?

Are employers allowed to pay employees differently based on their experience?

Related FAQs

Related Blog Posts