Salary Inversion Adjustments Clause Samples
The Salary Inversion Adjustments clause addresses situations where less-experienced or lower-ranked employees receive higher salaries than their more-experienced or higher-ranked counterparts, often due to market-driven hiring practices. This clause typically outlines procedures for reviewing and adjusting salaries to correct such disparities, ensuring that compensation remains equitable within the organization. Its core function is to maintain internal pay equity and prevent morale issues that can arise from salary inversion.
Salary Inversion Adjustments. Salary inversions that arise from promotions, other than from those exempted faculty, shall be adjusted as follows: Adjustment = 100% of salary difference + $100 for each year in rank up to a maximum of five (5) years in rank. It is understood this scheme might lead to excessive adjustments, and limits on the overall award may be necessary.