US employer eradicates pay gap by paying everyone the same

US employer eradicates pay gap by paying everyone the same
09 Oct 2018

A small business owner in Portland, Oregon, has started paying all of his staff exactly the same salary - including himself.

Unsettled by how the pay gap between chief executives and founders and their workforce, Kevin Cavenaugh decided architectural firm Guerrilla Development's six employees would all make the same amount.

"I just realised that I don't have to play by the rules," he told KOIN6. "It's that simple."

In one fell swoop, he equalised the boss-to-employee wage ratio and took care of the gender pay gap, although he acknowledges the move could generate problems.

"How do you feel about someone sitting two desks over that was here for a year - you've been here for five years - making the same as you? Is that fair? Interesting conversation," Cavenaugh said.

He added: "I don't know if it's going to work. It's an experiment. Talk to me in a year."

Emma Woollacott 

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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A small business owner in Portland, Oregon, has started paying all of his staff exactly the same salary - including himself.

Unsettled by how the pay gap between chief executives and founders and their workforce, Kevin Cavenaugh decided architectural firm Guerrilla Development's six employees would all make the same amount.

"I just realised that I don't have to play by the rules," he told KOIN6. "It's that simple."

In one fell swoop, he equalised the boss-to-employee wage ratio and took care of the gender pay gap, although he acknowledges the move could generate problems.

"How do you feel about someone sitting two desks over that was here for a year - you've been here for five years - making the same as you? Is that fair? Interesting conversation," Cavenaugh said.

He added: "I don't know if it's going to work. It's an experiment. Talk to me in a year."

Emma Woollacott 

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

International organisations pledge to close gender pay gap by 2030

US forbids using salary history to pay women less than men

Ontario legislates for equal pay for equal work

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