If a company employee is earning a salary that is deemed to be excessive when compared to their counterparts of equal ability, their pay rate may be identified as what type of rate?

Question

Quizplus · Accepted Answer

If a company employee is earning a salary that is deemed to be excessive when compared to their counterparts of equal ability, their pay rate may be identified as a red circle rate.
Key Takeaway: A red circle rate occurs when a company employee is determined to be earning a salary that is above the maximum range for a job or when it is deemed excessive when compared to their peers. In the case of a red circle rate, the employee with the inflated salary may be ineligible for pay increases until the point when the maximum range for the position surpasses the employee's pay level.

If a Company Employee Is Earning a Salary That Is