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How to Avoid Antitrust Claims When Conducting Wage Surveys: Part 2

As stated in our previous post, we will now cover the proper steps to take in order to minimize risk when deciding to share wage and benefit information with a competitor. The safest course of action for human resource directors to follow is to not discuss wage and benefit information with competitors except in controlled and limited situations. The following is a summary of the steps that WageWatch recommends to minimize your risk if you intend to share data:

  • Employers should act unilaterally about setting wages and benefits.  There      should not be an agreement or understanding, written or oral, with respect      to fixing, maintaining or stabilizing wages and benefits.
  • The wage and benefit information should not be exchanged directly between employers.  This means no phone calls or round tables where      information is exchanged.
  • A third party should be utilized in order to make sure that no employer has      direct access to each other’s data. Participation in a WageWatch      compensation survey can be part of a defense against accusations of      antitrust violations. The WageWatch Hospitality Industry Competitive      Market Survey complies with all DOJ safe harbor guidelines.
  • The information that is disseminated by the third party should be      aggregated.  The ranges or averages of the wages and benefits cannot be disseminated if it can be related to a particular organization or a specific job.  This eliminates the once prevalent practice of tabulating the data for each employer in a spreadsheet format even if the name of the particular employer associated with that data was excluded.
  • Each aggregated wage or benefit statistic disseminated should be a composite of at least five different employers.
  • The disseminated statistics must be “historical”.  This means the older      the better.  The aggregated information disseminated to participants should not reflect current or prospective wages and benefits.  Current is defined as wages or benefits that having been in effect for less than three months.

While the above is an overview of steps to be taken when considering exchanging wage and benefit information between hotels, consultation with your legal counsel is recommended before participating in any exchange of wage and benefit information with competitors.

WageWatch provides expert services across multiple industries and geographic markets with cost-effective online compensation and salary surveys. We are an innovative organization that is always on the lookout for new ways to collect compensation and salary data for surveys and wage reports, allowing us to expand continuously into new industries and markets.

Please call us today at 480-237-6130 or contact us online to learn more about our services.

This entry was posted on Monday, July 22nd, 2013 at 1:38 PM and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.