Determining Starting Pay

HRCalifornia

When setting the initial pay rate for a new employee, keep legal and practical issues in mind. Legal considerations include complying with federal and state minimum wage and overtime laws, salary history bans, equal pay laws and avoiding claims alleging unlawful discrimination in pay.

Practical considerations include knowing what it takes to attract the candidate, how the proposed pay rate fits into your compensation structure and what you can afford to pay.

In certain limited circumstances, you’re allowed to pay less than the state minimum wage. For more information, see “Subminimum Wages” in Minimum Wage. In other circumstances, you

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