An across-the-board increase is a type of pay raise that applies uniformly to all employees covered by a specific agreement or policy. This means that every employee receives the same percentage or fixed amount added to their salary or wage, regardless of their position or performance. This approach is often used to ensure fairness and equity in compensation across an organization.
Across-the-board increases are commonly encountered in employment law, particularly in labor negotiations, collective bargaining agreements, and company policies. They are often part of union contracts, where the terms specify that all members receive the same raise. Employers may also implement these increases to maintain morale and reduce turnover. Users can manage related documents and agreements using legal templates available through US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A company decides to implement a 5 percent across-the-board increase for all employees to help offset rising living costs. This increase is applied to every employee's salary, regardless of their role or performance.
Example 2: A union negotiates a contract that includes a $1,000 across-the-board increase for all members, ensuring that every worker receives the same amount added to their pay. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Details |
|---|---|
| California | Employers must comply with state minimum wage laws, which may affect the implementation of across-the-board increases. |
| New York | Similar to California, New York has specific wage laws that employers must follow, impacting pay increases. |
| Texas | Texas does not have a state minimum wage higher than the federal level, allowing more flexibility in pay increases. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| General Increase | A wage increase applicable to all employees. | Often used interchangeably with across-the-board increase. |
| Merit Increase | A pay raise based on an employee's performance. | Unlike across-the-board increases, merit increases vary by individual performance. |
If you are an employee expecting an across-the-board increase, review your employment contract or collective bargaining agreement for specific details. If you are an employer considering such an increase, consult with legal professionals to ensure compliance with applicable laws. Users can explore US Legal Forms for templates that can assist in drafting or reviewing employment agreements.
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The purpose is to provide a uniform pay raise to all employees, promoting fairness and equity within the organization.