Many pay-related lawsuits begin with the starting salary. (And, with Ledbetter, a hiring mistake can cost you plenty!) To minimize the number of legal challenges and maintain a strong pay equity, consider using a simple hiring range.

Here’s how it works – when you receive the requisition, immediately develop a hiring range that is: (1) not less than the minimum of the pay range; and, (2) not more than the lowest paid competent performer in the same job. If you can’t find a candidate that fits within that range, either keep looking OR increase the pay of those in the same job who are making less than your intended offer.

Since there are NO SECRETS in compensation, any violation of this hiring range will (repeat, WILL) cost you dearly at some point. Employees have a way of finding out about each others pay. Don’t try to sneak one past that long-term minority employee who is now paid $10,000 a year less than the young white male you just hired. It just isn’t worth it.  Using a “hiring range” consistently will keep you out of all sorts of trouble.  Try it – you’ll like it.