Pay differentials
A) occur when a compensation system is poorly designed
B) are questionable under the Equal Pay Act
C) are used on a long term basis to accommodate differences between market rates and internal job evaluation pay rates
D) can result from geographic location differences
E) none of the above are true

Question

Quizplus · Accepted Answer

Pay differentials can result from geographic location differences, such as higher costs of living in certain areas or regional differences in market rates for certain jobs. The other options are incorrect as pay differentials can be part of a well-designed compensation system, may be justified under the Equal Pay Act if based on factors other than gender, and may be used on a short-term basis to adjust for market fluctuations.

Pay Differentials