Legal Question in Business Law in California

Employer Doesn't Give Out Raises

I worked for a company which is now out of business. During one of the monthly meetings, the owner of the company told his employees that he doesn't give raises and gave everyone a long-winded example of why he feels this way.

In the process of going to court to try and get the remaining money due us, we've learned that some of the owner's ''favorites'' were getting salaries way beyond the jobs they were doing or their abilities. It's obvious to us that the owner was using the money that should have gone to the rest of his employees for raises and giving it to the people (all females) he favored.

Is this legal? If it isn't, what can happen to the employer for pulling this stunt?


Asked on 12/19/02, 8:50 am

1 Answer from Attorneys
Martin Snitow

Re: Employer Doesn't Give Out Raises

The main issue is whether the raises given only to females shows discrimination based on gender. You have not given enough facts to be sure, but this is a possibility.

Since you did not say that the company filed bankruptcy or failed to pay creditors, there is no indication of a fraud on creditors.

If the raises were not given to favored employees because they were female and there was no gender based discrimination, then the employer's discretion in granting raises may be proper.

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Answered on 12/19/02, 10:01 am


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