While tough economic times continue, companies everywhere are creating innovative solutions to keep their loyal staff happy. As the company pocketbooks don’t have the spare cash for generous raises, many employers are turning to title promotions with slight raises as a way to show their appreciation. And while there’s nothing wrong with advancing a competent person, employment law experts warn companies to maintain integrity when giving promotions and be aware of potential legal risks associated with job title inflation.
"If you’re inflating job titles, you’re breaking down traditional boundaries in the duties category. While employers may have good intentions, if you start inflating titles, the titles themselves don’t reflect the duties of the position and required expertise. It also can become confusing, disorganizing and difficult when striving to maintain job classifications and proper salaries when the economy bounces back – including dealing with inaccurate job descriptions with misleading duties requirements, which can converge to cause difficulty separating exempt and non-exempt employees," said John K. Skousen, Partner, Fisher & Phillips LLP.
John K. Skousen, partner at the Irvine, Calif. office of employment law firm Fisher & Phillips LLP and an expert on performance management issues, has extensive experience representing a wide variety of regional and national companies with respect to all aspects of employment litigation. His specialized practice area includes wage and hour law and class-action litigation, making him the ideal representative to lend insight on what employers need to know in regard to latest trends in job title inflation and the potential negative consequences facing companies that engage in this practice.
Skousen offers the following issues to consider before implementing title changes in today’s economy:
Labor and employment law firm Fisher & Phillips LLP represents a wide variety of national and regional employers. The firm’s Irvine, Calif. office – one of 23 nationwide – offers a wide range of services to private and public sector clients, both unionized and non-unionized. With a focus on both preventive counseling and defense of claims, the firm addresses the business and legal objectives of employers in a way that optimizes their clients’ performance in today’s changing marketplace. To learn more about Fisher & Phillips, visit www.laborlawyers.com.
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