Is it legal to pay one employee more than another based on friendship?

An employee of the company that I work at is being paid over $2 an hour more than other employees based on his friendship with a district manager that hired him instead of a store manager. This employee has bragged about his pay and it was confirmed. He is getting paid more than people with more experience in the industry, the company, and those of us with collage degrees. He is even being paid more than managers that have worked with the company for ten years and he has only worked there under six months. Several of us have contacted the state labor board, and they said that they can bring it to the corporate offices attention, but what about us that have been cheated and worked for less pay (the corporate standard) than what was the other employee's standard?
Additional Details
Just a little note. There were seven others hired with this particular employee. All of the other hires starting at the lower pay rate are women. It has come to my attention that the company that I work for has been investigated for paying men more than women before.

dedhead

Yes it is illegal, but proving it is because of friendship instead of other reasons is hard to prove. Where the (winning) argument lies, is in the company handbook. Most likely, there is a clause that states no employee shall disclose their wages/earnings with other employees. I am assuming you are not union, otherwise the chances of this happening are nil. The chances of the employee being fired are very high, due to witnesses hearing him discuss his pay.

As for any recourse for back pay for the differences in income, that would usually have to come in the form of a lawsuit, and probably a class--action one. It would also have to rely on each ones performance reviews. Good Luck!!

Robert P

Have you ever heard of strike? An employer can legally pay whatever it wants to whomever it wants and that is why the labor board can only bring it to the corpoarte offices attention. Even if you are non-union you and your peers, all of them, can stay home as a group and voice your reasons when you do, if there are enough of you then that will really bring it to corporates attention. But yes, you would risk getting fired as the downside.

Judy

It's legal, not fair, but fair and legal are two different issues.

You aren't being cheated. You say yourself that you are making the corporate standard and that the other person's pay is out of line. As long as you are making at least the legal minimum wage, it isn't a labor board issue.

If the district manager's bosses see the situation, he might be asked to explain why he directed that person would be paid more. He might have a perfectly acceptable answer - if he's asked and has no answer, HE might be disciplined by his bosses, but it's not a legal issue.

mailaccount63

It's done all the time.

It's reality.

bdancer222

Not only is it perfectly legal and there is nothing you can do about it, but it is pretty common for a new hire to get paid more than the folks who have been doing the job for years.

It sounds like your office spends way too much time gossipping.

StephenWeinstein

1. This is legal.
2. You are not being underpaid. You are being paid the correct amount and the one employee is being overpaid. The company, not you, is being cheated.

heather

its not LEGAL what so ever.
he could go to jail for this

Mercus

Its not iligal dude its just a matter of too much ganja by the way where the bambocklac this job at so I can aply too lol

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