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July 13, 2010
Common Pitfalls to Avoid During a Compensation Analysis

In a BLR webinar entitled "Compensation Plan Design: The Three Cs for Achieving Success," Brooke Green, founding principal with Presidio Pay Advisors and Mary Topliff, Esq., founder of Mary L. Topliff law offices in San Francisco described the common pitfalls that are avoidable during a Compensation Analysis and/or Fair Labor Standards Act (FLSA) Analysis.

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The first potential pitfall is bypassing the direct manager.

  • You may obtain imperfect information
  • It's a missed opportunity for buy-in, i.e., supporting the results
  • Surprises create pushback, so it's better to include managers in the process

Another pitfall is relying on job descriptions:

  • Job descriptions don't describe the percentage of time spent on each duty
  • Is the person really doing that job?
  • Court rulings are based on actual job performed, not described

Questionable management decision-making:

  • Advocating for "pet positions"
  • Not addressing back overtime
  • Company decides to take "calculated" risks

Brooke Green is a founding principal with Presidio Pay Advisors ( where she provides consulting advice and implementation assistance to clients with compensation support needs. Mary Topliff, Esq. founded the law offices of Mary L. Topliff in San Francisco ( after practicing civil and employment litigation for nine years. The firm specializes in employment law counseling, training and compliance.

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