Top Trending: 10 Horrible Habits That Destroy Your Happiness

Lead Buzz 05/05

A "booming" workforce, the importance of "vision" and more
  • ---Shares
This story appears in the May 2005 issue of Entrepreneur. Subscribe »
Reader Resource

Apply now to be an Entrepreneur 360™ company. Let us tell the world your success story. Get Started »

Rage Over Age

Boomers are aging gracefully on the job. Seasonally adjusted figures reveal that workers 55 and older landed 998,000 jobs last year, according to Chicago outplacement and research firm Challenger, Gray & Christmas Inc. Says CEO John Challenger, "The baby boomer population doesn't intend to retire like the previous generation."

Older employees, however, are raising tensions over pay increases. Consider Smith v. City of Jackson, where plaintiffs argue their employer's revamped pay plan gave larger raises to workers with less time accrued and therefore disproportionately rewarded employees under 40. The Supreme Court will decide whether employers discriminate when a pay proposal appears to have a negative impact on older workers. A decision is expected around press time.

But don't wait for the Supreme Court's verdict to understand the risks of adjusting salary packages, since Title VII laws currently apply to companies with over 15 employees. Be careful implementing pay changes. Document everything, and be able to justify pay increases.

Claims of ageism regarding pay will be a heated topic as hiring picks up. Says Adrienne B. Koch, a New York City attorney with Esanu Katsky Korins & Siger LLP, "A company can suddenly have to meet the market but can't raise [everyone's] salary."

Edition: May 2017

Get the Magazine

Limited-Time Offer: 1 Year Print + Digital Edition and 2 Gifts only $9.99
Subscribe Now
OK

This website uses cookies to allow us to see how our website and related online services are being used. By continuing to use this website, you consent to our cookie collection. More information about how we collect cookies is found here.