Q1: In a franchise, who is the employer for pay equity?
A1: In cases where the individual franchise owner controls hiring, firing and disciplining employees, setting wages and valuing jobs, the individual franchisee is likely to be the employer responsible for pay equity. In cases where the franchise is corporately owned and the corporation retains control and decision-making power over human resources and pay systems, then the corporation is likely to be the employer for pay equity.
Q2: A large general merchandise retailer with three divisions: department store, discount merchandise, and specialty superstore operate under different names. Is each division considered the employer for pay equity purposes or would they all fall under the same pay equity process?
A2: Internal divisions created by the corporate entity for operational, marketing or other purposes do not necessarily constitute separate employers for pay equity. Unless the divisions have been structured so that the authority and accountability for determining pay and valuing work has been transferred to the individual divisions, generally the corporate entity remains the employer for pay equity purposes.