• 12
  • May
    2011

Employees have the right to be paid fair earnings. In order to offer competitive salaries, many large companies conduct market analyses, and compare the salary ranges of their current positions with similar positions and salary ranges available at other companies. This information helps companies compensate their employees fairly, and it also helps employees have an accurate understanding of the benefits available at other companies.

Currently, several California companies are facing allegations that they worked together to fix and suppress the compensation of their employees. The companies named in the class action wage and hour claim include Apple, Google, Intel, Adobe, Pixar, Lucasfilm and Intuit. The companies' actions violate employment laws regarding antitrust, business and unfair competition.

According to an article in Forbes, Apple played a more significant role in the wage suppression than the other companies. The lawsuit states, "Every agreement alleged herein directly involved a company either controlled by Apple's CEO, or a company that shared a member of its board of directors with Apple."

This is not the first time these companies have come under fire for trying to unfairly manage their employees' wages. In 2009, the Department of Justice investigated their employment policies. At that point, there were clear policies that forbid cold calling employees at other companies to learn about their salaries.

Google, among other companies, has a policy that clearly states cold calling is not allowed. The policy was put in place to prevent poaching high-tech employees between companies.

Read more in an upcoming post to learn more about the allegations against Apple, Google, Intel, Adobe, Pixar, Lucasfilm and Intuit, as well as the positive and negative impacts cold calling has on employees.

Source: Forbes, "Apple Allegedly at Center of Employee Compensation Conspiracy Involving Google, Intel, Adobe, Pixar, and Lucasfilm," Ben Kerschberg, 4 May 2011