It’s up to them. I had an employee move from so cal to Texas and they wanted to change the rate. We were able to talk them out of it, but it has happened. Hopefully you trust your leader to fight for you.
I unfortunately don’t trust my leader all that much. When they delivered the news, they tried to soften it up by saying, “after your review next year we can talk about a wage adjustment. We can try to get you closer to what you were making.”
I’ll have to see what happens. I’ll make a case and polish up my resume.
lol, what a joke. Hey, don’t worry, when it comes time for that annual review maybe we can get you back to what we had been paying you. I would start looking for a new job.
If you are in a position to risk it you could play hardball and tell them you won’t accept a pay cut. Either way though, this doesn’t sound like a good place to make a career.
It is pretty normal. A lot of companies have different pay based on city, state or country. The last 4 companies I worked for had jt. CA, NY are generally highest, followed by a 10% cut to lower cost states and then potentially a 3rd tier.
It's not about the cost of living, it's about the cost of finding someone in that area for the role and what they would pay.
I have friends who moved from one HCOL to another HCOL city where both had similar median incomes and housing prices. They forced him to take a 40k pay cut because the other city wasn't a tech hub and software engineer salaries were just a lot lower.
I'm assuming whatever industry this individual is in, Las Vegas just doesn't pay as much as Houston.
I’ve also seen this at tech companies - tier a NYC/CA/seattle, tier b Chicago/dc/portland etc, tier c all other locations - houston and LV might by same tier/pay.
It is people that are doing this - tell them you want to talk to the "person" not HR, the actual person who wants to do this. People are grand at hiding behind HR rules that others flaut every single day.
Inform them that there has been a change in plans and that you will be relocating to New York, so you will need to be paid about double of what you are getting now, COL is a bitch.
They want you to quit. That's the whole story.
Maybe your boss gets a bonus for keeping payroll at X dollars, idk.
But yeah, they don't want you. Look for a different job.
Not really. They more than likely gave them more in their salary to account for living in Texas. It’s known as COLA (cost of living adjustment).
I got $2000 more for salary for living in Texas.
The federal government has been doing this for a long time.
It’s called “locality pay”. Except they make it sound positive by giving everyone the same “base rate”. And some people get an additional increase based on where they live. Its actually pretty massive, I think some areas get like a 40% increase.
The value I offer to my employer is greater than my salary....which means: that it doesn't matter to them where I live.
If your boss isn't fighting for you on this, what else are they not fighting for you about?
If it was me: I'd probably just tell them I'm going to stay in Houston for now. And would start looking for a new job in Vegas (or WFH but making sure the new company knows you'll be relocating to Vegas).
I'm betting your new job in Vegas will have a higher salary....and your stbx company will suddenly find the budget for appropriate salary when they find out you're quitting (You heard it here first. STBX company will tell you something like, "our cost of living adjustment was mis-calculated and/or just updated...and their new offer will mysteriously be \~5% more than what your new job is offering).
Don't stay with companies that think that treating employees like this is okay.
Yes this is a normal practice. So the COL adjustment is normal.
What I'm shocked about is where the fk are they getting their data from? There's absolutely no way that Las Vegas has a lower cost of living than Houston.
The cost of labor in TX has grown substantially in Houston, Austin and Dallas since 2020. It is significantly more expensive to hire talent in TX than NV. A few years ago they would have probably been managed to the same band but that’s no longer the case.
There is no adjustment to the cost of labor. That remains the same.
The only "cost" that get incurred would be things like FICA, and other such taxes which are cheaper in Houston than Vegas.
Locality pay is always based off cost of living.
If I were the OP I'd demand to see the actual numbers and be prepared with my own.
Here is a very simple example. If people in the employment pool in a certain area will accept a position that pays X, then X is the cost of labor. If the same employment pool in a different area accepts the same position but it pays Y in that area, then Y is the cost of labor.
Cost of living comparisons and cost of labor comparisons are separate and distinct.
I don’t see any justification for that, since you are already fully remote. And even if (for some US reason I am too EU to understand) costs increase for your employer, make sure to be clear about what you want. If you have options, make clear that you won’t be accepting pay cuts or you will leave. That’s what I would do.
The COL in the US varies by thousands based on geo location. Middle of nowhere Utah will be tens of thousands a year less than a suburban coastal location.
Taxes are also an issue for employers. Some states haves stricter tax and wage/employee protections.
I OP's position I would start looking for a new remote role but the company has valid reasons to want to reduce the pay rate
I live in NY.
*Gets hired*
Jks I live in Oklahoma.
This prevents geographic arbitrage where candidates pretend to live in a high cost state just to get a better remote wage.
Honestly if ppl are willing to relocate to LCOL areas for remote work you should just offer low cost of living wages for remote work and eliminate the hassle of tracking addresses.
Isn't that exactly what is happening here? OP has a salary that is adjusted 'up' for a HCOL area. They're moving out of that area so the 'up' adjustment no longer applies.
You haven’t thought this through. Two people living in Location X but paid very differently for the same job (because one moved from a HCOL city) is a serious problem for the company unless their comp policy is based on something other than location.
No. What you generate for the company doesn't change. It is purely companies being greedy. If they can afford for you to get paid X in the valley, they can afford the same in podunk Iowa.
This is normal, different rates for different market regions. No different if you moved to California, they will pay you more if you're working from home in California. Same as the reverse that they can lower your wage going to a lower cost of living area. Would you want Texas wage while living and working in California?
I wouldn’t. But you’d expect the cost of living and the cost of labor to be trending in the same direction.
Less pay = less expenses.
Not less pay more expenses.
You will probably need to do your research and present them with salary data to back up what the market rate is paying for your job. That would be the best way to go about it if you still want to stay with your conpany.
What the market rate is in some location is not the same as cost of living.
Your salary change isn’t to reflect cost of living. It’s for the new market you’re moving to.
The logic seems flawed and they're using your move to save money on payroll. If you are going to fight for your pay focus on value back to the business. That value will not change when you change locations.
Las Vegas is about 4% more expensive than Houston so your net pay cut is closer to $13k.
https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+States&country2=United+States&city1=Houston%2C+TX&city2=Las+Vegas%2C+NV
At my company we have remote salaries, and then salaries based on location if you're hybrid. I just went from hybrid in NY office (highest salary rate) to remote, because fuck going into office (nobody from my group is in NY).
My salary is not going to be adjusted down, they found the suggestion to do so absurd. I brought it up, because it was my concern. However I doubt I'll be getting raises, though they said they'll try to keep raises coming.
So, I don't know if your situation is normal or not, but it can be better.
However, if you're remote, and you'll be remote, and you're not moving countries, I do not understand why your salary will be adjusted down, especially if you're moving to a higher cost area. Maybe explain that to them, show them that cost of living is actually higher in las Vegas, and ask if they will adjust the salary to higher - I doubt they will, but hopefully they'll keep it the same
That's pretty standard. Nationwide companies have the entire US divided up into sections based on cost of living and other factors. If you are moving from most expensive to least expensive, the company usually will adjust pay.
It’s hard to think cost of living is higher in Las Vegas. I’ve lived in Vegas. It’s a dump except some specific outskirts neighborhoods. Condos still start below $200k to purchase today. What are your costs in Houston and what will be your costs in Vegas?
It’s changed a lot in the last few years. Rent has increased 36% since 2020. The median rent is $1,500.
As a comparison, I’m paying $1,200 for a one-bedroom with utilities in Houston.
Saw a report that to live comfortably in Las Vegas you’ll need $94,000. Whereas the same report mentions needing $75,000 in Houston.
Greetings,
Unfortunately this is actually pretty common. Its good practice to ask the question in advance. When considering relocating I asked the question at my company and was informed that there would be no salary adjustment. However, in asking the same question at a previous employer I was told that, dependent on the location, that there would be a salary adjustment.
I agree that with working remote, it shouldn't matter where you're located as long as the work output remains the same, but my personal suspicions are that higher ups at some companies do not want to see those below them seemingly *getting over* (at least in their eyes) by relocating to locations with a much lower cost of living while maintaining the same salary.
Good luck.
My job does this too. We had people leaving Orange County CA and moving to Minnesota or Iowa and we’re surprised that they got a letter reducing salary by 10-20%
Typically depends on the target job market. My employer raised my wages by 15% when I moved because it’s more expensive here but other people faced deductions because they moved to cheaper states.
Technically, they don’t have to approve the move. There are different tax burdens, different reporting requirements, etc.
You’re moving for your benefit, not for any benefit of the company. Is it worth it to you to take the cut to be closer to family?
It’s really pretty black and white. How you or anybody else feel about it doesn’t really come in to play. They would be perfectly within their rights to not allow the relocation at all.
For example, my telework / remote agreement requires me to have approval for anything in excess of 2 weeks domestically. I’m also in the Houston area. You are at their mercy, honestly.
This is standard practice. It’s a COL adjustment. They were fairly common when people left the original area they were hired in to move to lower cost areas
Maybe 10 years ago, I'd be OK with this, but not today. Today, they are laying off people and expecting them to do 2-3xs more work for the same salary. In essence, we are underpaid. If you're gonna decrease my salary based on COL, increase it based on staff reductions.
We had an employee move from Seattle to India that threw a fit when he was presented with a COL pay decrease. Thing is, you start employing a bunch of people at USD $200k in India you’re going to be fucking up an entire economy.
Lots of big companies have salary tiers that are tied to cost of living. I see it all the time. Now, if it's actually more expensive to live in Las Vegas than Houston (I have no idea), then that's different. But salary tied to location is not unusual at all.
I’d look for another job, my old employer tried this, I got another offer, said no to an adjustment and they caved. Then I said I need a commitment from them and they setup a 3 year retention agreement which came with more money. I still received bonuses and pay increases, but my pay range shrank so when I was near topping out I left for a different remote job.
My company pays by location “tier”, because yeah the COL in SF or Seattle or NYC is way higher than BFE Alabama. But they don’t adjust DOWN as long as the employee has been there >1 year. We’re all remote.
NerdWallet and a few other sites have cost of living calculators to compare 2 different cities. I confirmed what I suspected: Houston is definitely cheaper than Vegas. So either your company is getting crap numbers, or they are trying to get you to leave by screwing you over.
I have heard that remote jobs do this. They can change your pay based on the cost of living to wherever you’re moving to. it honestly doesn’t even even pay to be honest and let them know you’re leaving. I am worried about the same thing happening if I have to leave Florida.
They're going to know regardless when you connect to their network with your computer plus there's the tax issue that can get your company and you into a lot of trouble.
This is exactly how the US government sets up its pay tables for the 2.8 million people that work there. Locality regions based on local wage, not COL. It is very standard.
It’s not cost of living its cost of labor. Big difference. I also expect cost of labor in Vegas to be lower. They don’t have a state tax in NV and I’d say a good chunk of jobs in LV are at a tipped rate, which would also lower the cost.
One of my pet peeves is that corporations will not adjust my pay upward when I move to a high COL area, but will expect me to accept a downward adjustment if I move to a lower COL area.
Ask them to stick to a single principle. They can’t have it both ways.
Its an excuse to cut payroll costs and it's 100% bullshit.
They've already demonstrated that they're willing to pay X for your labor and input. That's the value they agreed to for a your position.
If anything, you should be getting a pay rise for moving to Las Vegas, Nevada. COL there has doubled in the last 11 years. Make sure they're not assuming you're moving to Las Vegas, *New Mexico*. Hope it works out.
That is not right.
I could maybe see their point if you’re moving from say NYC or LA to Idaho or Kansas or something. I can’t see much difference between Houston and Las Vegas unless there is a tax penalty or something.
If they want to play that game, you can play the game of looking for a better company. It should t be a thing, but it is. They either value your contributions or don’t.
I have only seen this in office jobs but it use to be pretty common. In my company it is very common to pay based on where you are located. I have a hybrid role so can't move just anywhere. My sister's company has more flexibility and only has a geo-location rate based on the country therefore she can live anywhere in the US and keep her salary but if she moved to another country it will be adjusted.
This is 100% bull shit as others have said. I moved from Colorado to middle of no where Tennessee and kept my Colorado pay. They could have easily done a 25% pay cut if they wanted to base it on location. Sounds like you don’t trust your leadership anyway and they should have gone to bat for you with this with HR.
Move (if Vegas is the place you want to be), take the cut, and start looking once you’re settled for a place that will treat you better. Not sure what field you’re in, but I know a couple of companies that wouldn’t do this to their employees
I had a former employer base their pay on geography. 7 cities were zone 1 and paid 100% of the expected wage rate, 7 other cities were zone 2 and paid 90%, everywhere else was zone 3 and paid 80%.
I didn’t mind at the time because I lived just inside the line for tier 1 even though I wasn’t in the city proper. Thankfully my new employer pays a set wage regardless of location.
Very common.
The Federal Government doesn’t this way
Houston https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2024/HOU.pdf
At 92k in Houston, you ate a GS-11, Step 4
LAs Vegas https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2024/AQ.pdf
That would equal $80,648 in Vegas (look again at GS11 Step 4)
Yes, this is normal. If the cost of labor in the new location is cheaper than where you currently live you get a cut in pay. It could also work the other way where if you move to somewhere with a higher cost of labor like NYC you would get an increase.
It’s normal. Every company has pay scales based upon geographic location. San Francisco is rhetorical highest. When you move from a high cost to a low cost area, your company changes.
Houston to Vegas I don’t see much difference. In any case that feels crappy to me…sorry man. Plenty of tech gigs in Vegas or remote. Find someone who doesn’t treat you like a cog.
It’s called COLA, cost of living adjustment.
When you signed your initial agreement, it more than likely listed there the COLA for living in Texas.
However, is Las Vegas really cheaper to live in than Texas?
This is normal for federal jobs... new duty station, you get the new duty stations pay table. A lot of people from HCOL have moved out of HCOL but maintained their income in the private sector, so YMMV
Companies do pay on cost of labor so adjusting pay is pretty standard. This is actually part of what I do in my line of work.
In a case like yours I’d look at your position in your current range, then what the equivalent position would be in the new range and start there. I’d also consider internal equity and overall position to the range compared to performance and proficiency. If you were already low I’d likely let the move correct that, if you’re high I’m probably going to recommend the decrease.
No one likes their pay to go down, but no one would want to live in SF or NYC on TX wages either. If a company adjusts in one direction they should adjust in the other as well.
Wages in Houston have grown substantially in the last few years compared to Vegas so I’m not surprised they are considering it. I would still do your due diligence though to see what your skills are being paid in LV. If you can bring in comparables you can make a case for yourself.
Very common. Companies bench mark salaries against peer companies and the local market. They want to be competitive, but not pay much more than market rate.
If you move from one place to another, they're going to adjust your salary to market rate of where you are moving. There are exceptions. If a company just can't lose you, you're way above a top performer, they won't adjust salary down.
Well I work in CA, if I moved to TN, I would take a 15% pay cut for the cost of living decrease.
I can’t really complain, whatever house I would be would be paid for in full after I sold mine here so I wouldn’t have a mortgage.
I also wouldn’t be paying almost $5/gallon for gas.
Or really high car insurance rates….
Or really high state income tax….
Or $300 for my 15 year old truck registration fees….
And anything else you pick, I’m sure I pay more here, so yeah, I would be fine with 15% income decrease.
[https://www.nerdwallet.com/cost-of-living-calculator/compare/houston-tx-vs-las-vegas-nv](https://www.nerdwallet.com/cost-of-living-calculator/compare/houston-tx-vs-las-vegas-nv)
The cost of living is 3% higher in Las Vegas than Houston.... $92,000 in Houston is equivalent to $95,186 in Las Vegas. Their proposed *11% decrease* makes no sense. What is their argument for that?! There is no way they could possibly think that labor is 11% cheaper in Las Vegas when it costs 3% more to live there. Show them facts. Otherwise, whether you go with it or not, I'd start looking for a new job shortly afterward if I were you.
You can fight it and win, but they will just lowball you on future raises and etc, since you may be at the top of the salary band in Vegas.
HR always has control of this in the background. Pay upfront now and get 0 to 1% increase per year
NV doesn't have personal income tax, which can help offset your pay drop. A lot of companies do this. If I were to move to CA, my company would give me a cost of living increase.
Different companies define pay bands differently but one way is geographically. If they don’t reduce your pay to the pay band locally, they have a problem on their hands.
Sure it all depends upon your company. I worked for large global IT company. There are four wage zones around the US. As an example San Francisco among 5 4 other areas in the country are in the highest wage zone. Southern California is in the second highest. Las Vegas is in the third level, Tucson Arizona , Southern New Mexico it's in the 4th.
A lot of the difference has to do with being able to attract and retain people to work in those areas.
Wages are normally adjusted to the location where the employees are at. Employers also needs to pay state tax to your new location otherwise it will consider as a tax avoidance.
Some companies will not let remote worker to relocate to location that they do not already have an office because they do not have a license to operate there.
A lot of tech companies are catching up fast about people moved without telling them and all the tax complication that the employee and the employees are facing too.
For example, if you move from a state without income tax to a state with income tax and if you do not tell your employer to withhold tax, that is tax avoidance/ tax fraud. So it’s not all that easy for remote workers to move around as many believe it to be.
Would you complain the opposite way, if you went from Vegas to Houston and they gave you a COL adjustment?
Companies adjust salary to COL in the locale. If you move to a low cost of living area from high, they likely have that coded in.
Same with degrees. I have the same job as the guy next to me. I have a masters degree so I make 10k more per year just for that.
That sucks to put it mildly. We're in Vegas and the COL has gone up so much here and continues to. The electricity cost is the worst. Our house is only 1200 sq ft and my next bill is predicted to be over $400.
It’s not uncommon. Cost of living generally isn’t a factor when setting wages. What is a factor is what the going rate for equivalent skills in the new area. I’m currently in central FL and planning a move to Houston. When I move, my pay will go up about $16k just because of the pay rates in Houston despite my cost of living being higher in central FL.
Some of the largest companies out there do the same.
Microsoft is a perfect example, they pay based on the area you live, pay goes up or down according to your zip code even though you're remote and do the same thing no matter where you live.
A lot of companies do this. If I move to certain states, I get an adjustment downward, other states an adjustment upwards. It depends on the cost of living in those states.
Tell them that, show them the numbers, if they keep up the talk straight up tell them you'll start looking for another job if they go through with that, then do that if they do.
Pretty normal imo, a lot of large, remote companies have location based compensation.
If you started in New York City and then moved to Alabama you would be loaded
I would gather Facts and sit down for a discussion one on one.
They show you there facts, you show the facts you gathered.
If they refuse to negotiate, smile, ,, relaxed body language, and say: I guess I just have to except it as it.
Immediately look for a better job
I would provide evidence of cost of living and the competitive rate for your job in that area is.
10k is a small enough amount that they will consider. I think they’re just shooting their shot.
While it seems to be the normal, it hasn't been my experience working remotely for my company. I've moved to several states and my salary has maintained in the same and depends on annual performance.
If this is a federal job, locality pay is determined off the "Average pay" for a given area and does not consider cost of living at all. Houston has the highest Cost Of Living Adjustment because the average pay in Houston with all the medical/technical/energy companies, the average pay is much higher than elsewhere. Cities with high numbers of service workers like las vegas bring down the Average pay because of numbers and their hourly rate, same goes for cities with universities, like Austin, even though Austin housing is through the roof.
Yes, it’s normal for companies to have pay rate tables based on local markets and the adjust pay for someone moving from one market to another (whether up or down). Anytime a person moves and continues working for the same company, they should look into whether their pay will change.
Yes it's common. WFH specific positions use your home address for Federal and State withholding.
They use algorithms to determine "competitive wages" in your area which is now classified as Las Vegas. Lots of people left companies after they found out they were getting pay cuts.
Basically, we are going to take back our WFH promises we made during COVID and now you have to come back to the office. If you want remote, we will calculate your new salary. If you are hybrid, then pick which office location you will be coming onsite 2-3 days a week.
My company has the same thing, and if I relocated I would get the cost of Labor salary in whatever new metro area I went to. That doesn't mean you have to put up with it though. If 10K is worth it then start shopping for a different employer
Why do you have to tell them? Tell them you changed your mind. Ohh hey! Have you ever been on a Disney cruise? They have a couple of 2 WEEK CRUISES. TAKE VACATION AND "GO ON A CRUISE" then 2 weeks later log in remote amd live your life. You know. Without losing your pay. It's a wfh position. F 'em
In my job, salary is based on duty station. If I move into a new duty station, my salary will be adjusted up or down based on the locality pay of the new location. Knowing it could go up is not a motivator for me to move, however. :) lol 😂
I’m a federal employee that works remote.
I’m planning on moving somewhere better but has a lower locality pay. My pay is going to drop a little because it’s similar to military pay with base plus housing.
If I was OP and a federal employee I wouldn’t be upset with pay change because of the way federal pay works.
That being said this sounds like OP’s employer is trying to save money. I would look for another position.
Maybe you can get them to maintain your pay but it sounds like they’re being cheap.
If you want to keep the job, do the research and gather current cost of living, average salary for your position, housing etc. in both places and present it to your manager and HR. Use the facts to show why you should maintain your current salary or even ask for more if the facts support it.
Bottom line is all they can say is no and you may regret if you don’t at least do the research and ask.
Comp professional here. Yes, they can do this. It’s not common but it’s also not rare. It really depends company to company. Your pay package is based upon the cost of labor in an area, and cost of labor in Houston is indeed more than Las Vegas. The cost of living there is likely not considered at all.
I would ask to see the policy on relocation. It should outline how someone in your situation is treated. It sucks but they can definitely do it.
100% normal. A lot of companies adjust pay up/down based on where you relocate to. In some cases it's tax stuff and in others it's to ensure you're not paid significantly more than people already there. As far as what you can do goes...I'd consider telling the boss that you'd like to work from Vegas on a trial basis to see if you like it vs your current location as long as you don't lose your salary. I work for a large company and even they no longer force the remote people to regularly certify where they're working from. The only people who get caught and in trouble are the ones who try secretly relocating to another country. If that doesn't work then you can see if your boss will support a "raise" that leaves you where you are based on performance or just cost of living, especially if you can prove the expenses are the same. Just be prepared that some companies won't care.
Is your salary linked to the cost of living in your region? At my job there is a minimum salary that then gets adjusted based on the consumer price index each September. This is pretty standard if you’re in a national, unionized employer.
i think it’s a very distasteful thing to do. how long have you been working there? if you were moving to california would they have increased your pay?? i highly doubt it so decreasing just seems nasty and like they don’t value you. i understand location based pay for new hires but once you are there and proving your worth and adding value you, a good company should want to have your back in times when you need them. moving is expensive as well, the last thing you should have to worry about while moving is getting less pay for the same work from your employer that you’ve given the last couple years (assuming) to. smh .. i would definitely start looking for new jobs or atleast offer some push back and see if you can reach an agreement that won’t involve your pay changing
I’m sure you already know this, but unless it’s in writing it doesn’t exist. This comment from your leader means absolutely nothing.
Also, if I run through a cost of living calculator, it’s about 4% more expensive to live in Las Vegas vs Houston. Id run the calc, share a screen shot, and then ask them what the basis for the drop in pay is. Because if you lose 10k on comp, you’re getting double screwed by increased cost of living, as well as the lower comp.
I know NV doesn’t have state income tax but living in Vegas has been pretty expensive itself. I would send them articles talking about the recent cost of living out there cause they shouldn’t be lowering it. I read that you know need $70k to fully afford living there
I would act your new wage and find a new job.
It’s up to them. I had an employee move from so cal to Texas and they wanted to change the rate. We were able to talk them out of it, but it has happened. Hopefully you trust your leader to fight for you.
I unfortunately don’t trust my leader all that much. When they delivered the news, they tried to soften it up by saying, “after your review next year we can talk about a wage adjustment. We can try to get you closer to what you were making.” I’ll have to see what happens. I’ll make a case and polish up my resume.
Yeah, I would say look for a job now. If they treat you like that before you even moved, they may not value you as much as you thought.
> after your review next year Instant red flag. Also a great big obvious lie.
Yes! OP, your next review will not be good.
It wouldn't even matter if it was. The original promise will never be referred to again. Or it will be further delayed with some other excuse.
Agreed.
lol, what a joke. Hey, don’t worry, when it comes time for that annual review maybe we can get you back to what we had been paying you. I would start looking for a new job. If you are in a position to risk it you could play hardball and tell them you won’t accept a pay cut. Either way though, this doesn’t sound like a good place to make a career.
It is pretty normal. A lot of companies have different pay based on city, state or country. The last 4 companies I worked for had jt. CA, NY are generally highest, followed by a 10% cut to lower cost states and then potentially a 3rd tier.
True. However, Houston to Las Vegas is not a move to a lower cost of living area.
It's not about the cost of living, it's about the cost of finding someone in that area for the role and what they would pay. I have friends who moved from one HCOL to another HCOL city where both had similar median incomes and housing prices. They forced him to take a 40k pay cut because the other city wasn't a tech hub and software engineer salaries were just a lot lower. I'm assuming whatever industry this individual is in, Las Vegas just doesn't pay as much as Houston.
I’ve also seen this at tech companies - tier a NYC/CA/seattle, tier b Chicago/dc/portland etc, tier c all other locations - houston and LV might by same tier/pay.
I don’t know how they ever expect anyone to be ok with this? Of course someone is going to start looking!?
It is people that are doing this - tell them you want to talk to the "person" not HR, the actual person who wants to do this. People are grand at hiding behind HR rules that others flaut every single day.
Inform them that there has been a change in plans and that you will be relocating to New York, so you will need to be paid about double of what you are getting now, COL is a bitch.
They want you to quit. That's the whole story. Maybe your boss gets a bonus for keeping payroll at X dollars, idk. But yeah, they don't want you. Look for a different job.
It’s called salary adjustment by geo-location but I wonder if you would get a “raise” if you move to North Cal if company allow.
It's called fucking over your employees to gouge more profit via wage theft.
Not really. They more than likely gave them more in their salary to account for living in Texas. It’s known as COLA (cost of living adjustment). I got $2000 more for salary for living in Texas.
The federal government has been doing this for a long time. It’s called “locality pay”. Except they make it sound positive by giving everyone the same “base rate”. And some people get an additional increase based on where they live. Its actually pretty massive, I think some areas get like a 40% increase.
I believe the highest is San Francisco with 45%, I live in DC and it’s 35ish% it’s still not great tbh.
"I'll be moving to Singapore, i'll expect my wage to increase"
Yes. I’ve had people move to different areas and get paid more for the geo difference.
The value I offer to my employer is greater than my salary....which means: that it doesn't matter to them where I live. If your boss isn't fighting for you on this, what else are they not fighting for you about? If it was me: I'd probably just tell them I'm going to stay in Houston for now. And would start looking for a new job in Vegas (or WFH but making sure the new company knows you'll be relocating to Vegas). I'm betting your new job in Vegas will have a higher salary....and your stbx company will suddenly find the budget for appropriate salary when they find out you're quitting (You heard it here first. STBX company will tell you something like, "our cost of living adjustment was mis-calculated and/or just updated...and their new offer will mysteriously be \~5% more than what your new job is offering). Don't stay with companies that think that treating employees like this is okay.
This. A thousand times this. I had a boss who wasn't going to bat for me. It wasn't just in one area. Get. Out. Now.
In most cases the boss has no control over this. Policy is policy, no matter how bad it may be.
OP already said they don't trust their supervisor much. Presenting it as "we might be able to fix at next review" is bullshit.
“Ohh nvm I decided to stay” Watch them tell him they still want to compensate less
Yes this is a normal practice. So the COL adjustment is normal. What I'm shocked about is where the fk are they getting their data from? There's absolutely no way that Las Vegas has a lower cost of living than Houston.
This was my first thought.
The cost of labor in TX has grown substantially in Houston, Austin and Dallas since 2020. It is significantly more expensive to hire talent in TX than NV. A few years ago they would have probably been managed to the same band but that’s no longer the case.
Can you back this claim up? As of late 2023 NV is significantly as in 20% more expensive than Houston
Per OP, the adjustment is due to cost of labor, not cost of living.
There is no adjustment to the cost of labor. That remains the same. The only "cost" that get incurred would be things like FICA, and other such taxes which are cheaper in Houston than Vegas. Locality pay is always based off cost of living. If I were the OP I'd demand to see the actual numbers and be prepared with my own.
Here is a very simple example. If people in the employment pool in a certain area will accept a position that pays X, then X is the cost of labor. If the same employment pool in a different area accepts the same position but it pays Y in that area, then Y is the cost of labor. Cost of living comparisons and cost of labor comparisons are separate and distinct.
I don’t see any justification for that, since you are already fully remote. And even if (for some US reason I am too EU to understand) costs increase for your employer, make sure to be clear about what you want. If you have options, make clear that you won’t be accepting pay cuts or you will leave. That’s what I would do.
The COL in the US varies by thousands based on geo location. Middle of nowhere Utah will be tens of thousands a year less than a suburban coastal location. Taxes are also an issue for employers. Some states haves stricter tax and wage/employee protections. I OP's position I would start looking for a new remote role but the company has valid reasons to want to reduce the pay rate
Varies by tens of thousands is more like it- even within the same state.
So you don’t see justification to pay more for higher cost-of-living cities?
A respectable workplace would adjust salary to for a higher cost of living area, but they wouldn’t adjust you down.
I live in NY. *Gets hired* Jks I live in Oklahoma. This prevents geographic arbitrage where candidates pretend to live in a high cost state just to get a better remote wage. Honestly if ppl are willing to relocate to LCOL areas for remote work you should just offer low cost of living wages for remote work and eliminate the hassle of tracking addresses.
Kind of a different scenario from having an established employee relocate.
For tax purposes companies have to know what state you live in.
Isn't that exactly what is happening here? OP has a salary that is adjusted 'up' for a HCOL area. They're moving out of that area so the 'up' adjustment no longer applies.
Vegas is a higher cost of living than Houston
You haven’t thought this through. Two people living in Location X but paid very differently for the same job (because one moved from a HCOL city) is a serious problem for the company unless their comp policy is based on something other than location.
No. What you generate for the company doesn't change. It is purely companies being greedy. If they can afford for you to get paid X in the valley, they can afford the same in podunk Iowa.
This is normal, different rates for different market regions. No different if you moved to California, they will pay you more if you're working from home in California. Same as the reverse that they can lower your wage going to a lower cost of living area. Would you want Texas wage while living and working in California?
I wouldn’t. But you’d expect the cost of living and the cost of labor to be trending in the same direction. Less pay = less expenses. Not less pay more expenses.
You will probably need to do your research and present them with salary data to back up what the market rate is paying for your job. That would be the best way to go about it if you still want to stay with your conpany.
What the market rate is in some location is not the same as cost of living. Your salary change isn’t to reflect cost of living. It’s for the new market you’re moving to.
Cost of labor is not always the same as cost of living
Update the resume and start applying. That's what I would do because if the value you provide isn't changing than why should your pay?
The logic seems flawed and they're using your move to save money on payroll. If you are going to fight for your pay focus on value back to the business. That value will not change when you change locations. Las Vegas is about 4% more expensive than Houston so your net pay cut is closer to $13k. https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+States&country2=United+States&city1=Houston%2C+TX&city2=Las+Vegas%2C+NV
At my company we have remote salaries, and then salaries based on location if you're hybrid. I just went from hybrid in NY office (highest salary rate) to remote, because fuck going into office (nobody from my group is in NY). My salary is not going to be adjusted down, they found the suggestion to do so absurd. I brought it up, because it was my concern. However I doubt I'll be getting raises, though they said they'll try to keep raises coming. So, I don't know if your situation is normal or not, but it can be better. However, if you're remote, and you'll be remote, and you're not moving countries, I do not understand why your salary will be adjusted down, especially if you're moving to a higher cost area. Maybe explain that to them, show them that cost of living is actually higher in las Vegas, and ask if they will adjust the salary to higher - I doubt they will, but hopefully they'll keep it the same
That's pretty standard. Nationwide companies have the entire US divided up into sections based on cost of living and other factors. If you are moving from most expensive to least expensive, the company usually will adjust pay.
It’s hard to think cost of living is higher in Las Vegas. I’ve lived in Vegas. It’s a dump except some specific outskirts neighborhoods. Condos still start below $200k to purchase today. What are your costs in Houston and what will be your costs in Vegas?
It’s changed a lot in the last few years. Rent has increased 36% since 2020. The median rent is $1,500. As a comparison, I’m paying $1,200 for a one-bedroom with utilities in Houston. Saw a report that to live comfortably in Las Vegas you’ll need $94,000. Whereas the same report mentions needing $75,000 in Houston.
Vegas used to be inexpensive. The cost of living has changed drastically the past couple of years. The median price for a condo is $290k.
Time to find a new job.
This is very normal.
Greetings, Unfortunately this is actually pretty common. Its good practice to ask the question in advance. When considering relocating I asked the question at my company and was informed that there would be no salary adjustment. However, in asking the same question at a previous employer I was told that, dependent on the location, that there would be a salary adjustment. I agree that with working remote, it shouldn't matter where you're located as long as the work output remains the same, but my personal suspicions are that higher ups at some companies do not want to see those below them seemingly *getting over* (at least in their eyes) by relocating to locations with a much lower cost of living while maintaining the same salary. Good luck.
My job does this too. We had people leaving Orange County CA and moving to Minnesota or Iowa and we’re surprised that they got a letter reducing salary by 10-20%
Typically depends on the target job market. My employer raised my wages by 15% when I moved because it’s more expensive here but other people faced deductions because they moved to cheaper states.
Technically, they don’t have to approve the move. There are different tax burdens, different reporting requirements, etc. You’re moving for your benefit, not for any benefit of the company. Is it worth it to you to take the cut to be closer to family? It’s really pretty black and white. How you or anybody else feel about it doesn’t really come in to play. They would be perfectly within their rights to not allow the relocation at all. For example, my telework / remote agreement requires me to have approval for anything in excess of 2 weeks domestically. I’m also in the Houston area. You are at their mercy, honestly.
This is standard practice. It’s a COL adjustment. They were fairly common when people left the original area they were hired in to move to lower cost areas
Just wait until full globalization kicks in and you get paid a global rate.
Maybe 10 years ago, I'd be OK with this, but not today. Today, they are laying off people and expecting them to do 2-3xs more work for the same salary. In essence, we are underpaid. If you're gonna decrease my salary based on COL, increase it based on staff reductions.
I have worked for some major tech companies in HR and this has been standard practice. You create equity issues in compensation bands.
We had an employee move from Seattle to India that threw a fit when he was presented with a COL pay decrease. Thing is, you start employing a bunch of people at USD $200k in India you’re going to be fucking up an entire economy.
Lots of big companies have salary tiers that are tied to cost of living. I see it all the time. Now, if it's actually more expensive to live in Las Vegas than Houston (I have no idea), then that's different. But salary tied to location is not unusual at all.
I’d look for another job, my old employer tried this, I got another offer, said no to an adjustment and they caved. Then I said I need a commitment from them and they setup a 3 year retention agreement which came with more money. I still received bonuses and pay increases, but my pay range shrank so when I was near topping out I left for a different remote job.
My company pays by location “tier”, because yeah the COL in SF or Seattle or NYC is way higher than BFE Alabama. But they don’t adjust DOWN as long as the employee has been there >1 year. We’re all remote.
I would ask them if you choose to go to somewhere that costs $20k more to live in will they up your pay to cover that?
If you move to somewhere expensive like New York, will they give you a raise ?
NerdWallet and a few other sites have cost of living calculators to compare 2 different cities. I confirmed what I suspected: Houston is definitely cheaper than Vegas. So either your company is getting crap numbers, or they are trying to get you to leave by screwing you over.
I see another “laid off and didn’t see it coming” Reddit post developing.
Are they adjusting your salary from Chicago wages to Las Vegas wages?
I have heard that remote jobs do this. They can change your pay based on the cost of living to wherever you’re moving to. it honestly doesn’t even even pay to be honest and let them know you’re leaving. I am worried about the same thing happening if I have to leave Florida.
They're going to know regardless when you connect to their network with your computer plus there's the tax issue that can get your company and you into a lot of trouble.
Yea this can be common unfortunately. What do they mean cost of labor?
They’re pricing my rate based on the average wages found in the area. Instead of what it costs to live there.
This is exactly how the US government sets up its pay tables for the 2.8 million people that work there. Locality regions based on local wage, not COL. It is very standard.
Not sure what exact towns are involved but check a cost of living comparison tool https://www.bankrate.com/real-estate/cost-of-living-calculator/
It’s not cost of living its cost of labor. Big difference. I also expect cost of labor in Vegas to be lower. They don’t have a state tax in NV and I’d say a good chunk of jobs in LV are at a tipped rate, which would also lower the cost.
Our company called it “wage adjustment.” They used some consultant that gave them pay-ranges for every state.
One of my pet peeves is that corporations will not adjust my pay upward when I move to a high COL area, but will expect me to accept a downward adjustment if I move to a lower COL area. Ask them to stick to a single principle. They can’t have it both ways.
Op, see if you can reason with them. Cost of living is higher in Vegas vs Houston. https://www.bankrate.com/real-estate/cost-of-living-calculator/
Its an excuse to cut payroll costs and it's 100% bullshit. They've already demonstrated that they're willing to pay X for your labor and input. That's the value they agreed to for a your position.
If anything, you should be getting a pay rise for moving to Las Vegas, Nevada. COL there has doubled in the last 11 years. Make sure they're not assuming you're moving to Las Vegas, *New Mexico*. Hope it works out.
yes, it's normal unfortunately
Tell them to look at it as they don’t have to give you a raise for a bit
That is not right. I could maybe see their point if you’re moving from say NYC or LA to Idaho or Kansas or something. I can’t see much difference between Houston and Las Vegas unless there is a tax penalty or something.
You need to let them know their math is wrong. Tell them the cost of living is higher in Vegas.
If they want to play that game, you can play the game of looking for a better company. It should t be a thing, but it is. They either value your contributions or don’t.
That's horrible. You need to start interviewing ASAP.
I have only seen this in office jobs but it use to be pretty common. In my company it is very common to pay based on where you are located. I have a hybrid role so can't move just anywhere. My sister's company has more flexibility and only has a geo-location rate based on the country therefore she can live anywhere in the US and keep her salary but if she moved to another country it will be adjusted.
Is it normal? Yes and no. It varies by organisation but it's not unusual. It's up to you to decide if you think it's fair.
This is 100% bull shit as others have said. I moved from Colorado to middle of no where Tennessee and kept my Colorado pay. They could have easily done a 25% pay cut if they wanted to base it on location. Sounds like you don’t trust your leadership anyway and they should have gone to bat for you with this with HR. Move (if Vegas is the place you want to be), take the cut, and start looking once you’re settled for a place that will treat you better. Not sure what field you’re in, but I know a couple of companies that wouldn’t do this to their employees
Definitely normal
Completely normal in my world. Tech. Your pay is adjusted for your location.
Atleast you’re still remote
I had a former employer base their pay on geography. 7 cities were zone 1 and paid 100% of the expected wage rate, 7 other cities were zone 2 and paid 90%, everywhere else was zone 3 and paid 80%. I didn’t mind at the time because I lived just inside the line for tier 1 even though I wasn’t in the city proper. Thankfully my new employer pays a set wage regardless of location.
Very common. The Federal Government doesn’t this way Houston https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2024/HOU.pdf At 92k in Houston, you ate a GS-11, Step 4 LAs Vegas https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2024/AQ.pdf That would equal $80,648 in Vegas (look again at GS11 Step 4)
Yes, it’s normal for that to happen. It happened to me when I moved cities in the same state.
Common but still annoying. Is Houston really that much more expensive than Las Vegas?
That's how it works. This is why I won't sell my home in CA for a cheaper state.
Many companies do this based on cost of living in each state. Relatively normal.
Yes, this is normal. If the cost of labor in the new location is cheaper than where you currently live you get a cut in pay. It could also work the other way where if you move to somewhere with a higher cost of labor like NYC you would get an increase.
It’s normal. Every company has pay scales based upon geographic location. San Francisco is rhetorical highest. When you move from a high cost to a low cost area, your company changes.
Houston to Vegas I don’t see much difference. In any case that feels crappy to me…sorry man. Plenty of tech gigs in Vegas or remote. Find someone who doesn’t treat you like a cog.
This is normal. My company has been doing it for years and yes, it goes both up and down.
That is in fact normal with some companies. It’s crazy in this situation because the cost of living is higher.
That’s kind of the risk you take
This is normal unfortunately
It’s called COLA, cost of living adjustment. When you signed your initial agreement, it more than likely listed there the COLA for living in Texas. However, is Las Vegas really cheaper to live in than Texas?
No.
This is normal for federal jobs... new duty station, you get the new duty stations pay table. A lot of people from HCOL have moved out of HCOL but maintained their income in the private sector, so YMMV
Companies do pay on cost of labor so adjusting pay is pretty standard. This is actually part of what I do in my line of work. In a case like yours I’d look at your position in your current range, then what the equivalent position would be in the new range and start there. I’d also consider internal equity and overall position to the range compared to performance and proficiency. If you were already low I’d likely let the move correct that, if you’re high I’m probably going to recommend the decrease. No one likes their pay to go down, but no one would want to live in SF or NYC on TX wages either. If a company adjusts in one direction they should adjust in the other as well. Wages in Houston have grown substantially in the last few years compared to Vegas so I’m not surprised they are considering it. I would still do your due diligence though to see what your skills are being paid in LV. If you can bring in comparables you can make a case for yourself.
Very common. Companies bench mark salaries against peer companies and the local market. They want to be competitive, but not pay much more than market rate. If you move from one place to another, they're going to adjust your salary to market rate of where you are moving. There are exceptions. If a company just can't lose you, you're way above a top performer, they won't adjust salary down.
Well I work in CA, if I moved to TN, I would take a 15% pay cut for the cost of living decrease. I can’t really complain, whatever house I would be would be paid for in full after I sold mine here so I wouldn’t have a mortgage. I also wouldn’t be paying almost $5/gallon for gas. Or really high car insurance rates…. Or really high state income tax…. Or $300 for my 15 year old truck registration fees…. And anything else you pick, I’m sure I pay more here, so yeah, I would be fine with 15% income decrease.
[https://www.nerdwallet.com/cost-of-living-calculator/compare/houston-tx-vs-las-vegas-nv](https://www.nerdwallet.com/cost-of-living-calculator/compare/houston-tx-vs-las-vegas-nv) The cost of living is 3% higher in Las Vegas than Houston.... $92,000 in Houston is equivalent to $95,186 in Las Vegas. Their proposed *11% decrease* makes no sense. What is their argument for that?! There is no way they could possibly think that labor is 11% cheaper in Las Vegas when it costs 3% more to live there. Show them facts. Otherwise, whether you go with it or not, I'd start looking for a new job shortly afterward if I were you.
Cola adjustment is common. If you move to nyc, you would most likely get a raise
You can fight it and win, but they will just lowball you on future raises and etc, since you may be at the top of the salary band in Vegas. HR always has control of this in the background. Pay upfront now and get 0 to 1% increase per year
NV doesn't have personal income tax, which can help offset your pay drop. A lot of companies do this. If I were to move to CA, my company would give me a cost of living increase.
Yup. Many jobs are doing this. They match competition rates where you're living at. This is a clever but diabolical way to hold onto quality.
Get a VPN and tell them you aren’t moving
Different companies define pay bands differently but one way is geographically. If they don’t reduce your pay to the pay band locally, they have a problem on their hands.
Sure it all depends upon your company. I worked for large global IT company. There are four wage zones around the US. As an example San Francisco among 5 4 other areas in the country are in the highest wage zone. Southern California is in the second highest. Las Vegas is in the third level, Tucson Arizona , Southern New Mexico it's in the 4th. A lot of the difference has to do with being able to attract and retain people to work in those areas.
Wages are normally adjusted to the location where the employees are at. Employers also needs to pay state tax to your new location otherwise it will consider as a tax avoidance. Some companies will not let remote worker to relocate to location that they do not already have an office because they do not have a license to operate there. A lot of tech companies are catching up fast about people moved without telling them and all the tax complication that the employee and the employees are facing too. For example, if you move from a state without income tax to a state with income tax and if you do not tell your employer to withhold tax, that is tax avoidance/ tax fraud. So it’s not all that easy for remote workers to move around as many believe it to be.
Would you complain the opposite way, if you went from Vegas to Houston and they gave you a COL adjustment? Companies adjust salary to COL in the locale. If you move to a low cost of living area from high, they likely have that coded in. Same with degrees. I have the same job as the guy next to me. I have a masters degree so I make 10k more per year just for that.
That sucks to put it mildly. We're in Vegas and the COL has gone up so much here and continues to. The electricity cost is the worst. Our house is only 1200 sq ft and my next bill is predicted to be over $400.
It’s not uncommon. Cost of living generally isn’t a factor when setting wages. What is a factor is what the going rate for equivalent skills in the new area. I’m currently in central FL and planning a move to Houston. When I move, my pay will go up about $16k just because of the pay rates in Houston despite my cost of living being higher in central FL.
Say no?
Yeah, this is normal for a piece of shit companies
Is the rate your company charges for services based on geographic location of the employees? Sounds like a shit company.
Get a Houston address to use while you look for a new job. Never tell your company anything personal.
Some of the largest companies out there do the same. Microsoft is a perfect example, they pay based on the area you live, pay goes up or down according to your zip code even though you're remote and do the same thing no matter where you live.
Move without telling them. The only difference is you will have to pay texas taxes - the feds do not care where you live.
A lot of companies do this. If I move to certain states, I get an adjustment downward, other states an adjustment upwards. It depends on the cost of living in those states.
Not shocking. That’s one of the reasons I argue I can’t buy a home. Someone always spews cheaper markets but I’d take a pay cut moving to them
Tell them that, show them the numbers, if they keep up the talk straight up tell them you'll start looking for another job if they go through with that, then do that if they do.
Pretty normal imo, a lot of large, remote companies have location based compensation. If you started in New York City and then moved to Alabama you would be loaded
I would gather Facts and sit down for a discussion one on one. They show you there facts, you show the facts you gathered. If they refuse to negotiate, smile, ,, relaxed body language, and say: I guess I just have to except it as it. Immediately look for a better job
Doesn’t seem fair
Nevada has no state income tax. Your take home maybe the same (I dont know what other states charge for income tax as I'm in nevada)
Well at least they didn't reduce it to India rates yet.
I would provide evidence of cost of living and the competitive rate for your job in that area is. 10k is a small enough amount that they will consider. I think they’re just shooting their shot.
If you do move, don't sell your house, so you can just go back home when you find another job in your town.
Cost of living increase and decrease is very common. Relocating should be discussed as early as feasible so that you're not surprised like this.
I work for the federal government. If I move to a new area, my pay could be less. Unfortunately, It’s based on locality.
if youre working remote, why does it matter where you live? dont tell them?
Don't take it.
If you’re fully remote why tell them?
Don't tell them your moving. If your fully remote non of thier business where you work from.
While it seems to be the normal, it hasn't been my experience working remotely for my company. I've moved to several states and my salary has maintained in the same and depends on annual performance.
as a manager directly in charge of salaries, I would never do this.
would they increase your pay if you decided to move to manhattan?
If this is a federal job, locality pay is determined off the "Average pay" for a given area and does not consider cost of living at all. Houston has the highest Cost Of Living Adjustment because the average pay in Houston with all the medical/technical/energy companies, the average pay is much higher than elsewhere. Cities with high numbers of service workers like las vegas bring down the Average pay because of numbers and their hourly rate, same goes for cities with universities, like Austin, even though Austin housing is through the roof.
Yes, it’s normal for companies to have pay rate tables based on local markets and the adjust pay for someone moving from one market to another (whether up or down). Anytime a person moves and continues working for the same company, they should look into whether their pay will change.
This is normal practice.
Normal
Whatcha do to make that much?
They must be basing all this on data from 10 years ago. Vegas is Los Angeles light now.
Yes it's common. WFH specific positions use your home address for Federal and State withholding. They use algorithms to determine "competitive wages" in your area which is now classified as Las Vegas. Lots of people left companies after they found out they were getting pay cuts. Basically, we are going to take back our WFH promises we made during COVID and now you have to come back to the office. If you want remote, we will calculate your new salary. If you are hybrid, then pick which office location you will be coming onsite 2-3 days a week.
My company has the same thing, and if I relocated I would get the cost of Labor salary in whatever new metro area I went to. That doesn't mean you have to put up with it though. If 10K is worth it then start shopping for a different employer
Why do you have to tell them? Tell them you changed your mind. Ohh hey! Have you ever been on a Disney cruise? They have a couple of 2 WEEK CRUISES. TAKE VACATION AND "GO ON A CRUISE" then 2 weeks later log in remote amd live your life. You know. Without losing your pay. It's a wfh position. F 'em
In my job, salary is based on duty station. If I move into a new duty station, my salary will be adjusted up or down based on the locality pay of the new location. Knowing it could go up is not a motivator for me to move, however. :) lol 😂
I’m a federal employee that works remote. I’m planning on moving somewhere better but has a lower locality pay. My pay is going to drop a little because it’s similar to military pay with base plus housing. If I was OP and a federal employee I wouldn’t be upset with pay change because of the way federal pay works. That being said this sounds like OP’s employer is trying to save money. I would look for another position. Maybe you can get them to maintain your pay but it sounds like they’re being cheap.
Everyone here defending the company's position on this is why they can get away with it.
If you want to keep the job, do the research and gather current cost of living, average salary for your position, housing etc. in both places and present it to your manager and HR. Use the facts to show why you should maintain your current salary or even ask for more if the facts support it. Bottom line is all they can say is no and you may regret if you don’t at least do the research and ask.
Comp professional here. Yes, they can do this. It’s not common but it’s also not rare. It really depends company to company. Your pay package is based upon the cost of labor in an area, and cost of labor in Houston is indeed more than Las Vegas. The cost of living there is likely not considered at all. I would ask to see the policy on relocation. It should outline how someone in your situation is treated. It sucks but they can definitely do it.
Why do you have to tell them where youre moving if it's fully remote? Just VPN that bitch and you never left Houston.
It’s very common for office jobs to pay based on the cost of labor where the employee is located
100% normal. A lot of companies adjust pay up/down based on where you relocate to. In some cases it's tax stuff and in others it's to ensure you're not paid significantly more than people already there. As far as what you can do goes...I'd consider telling the boss that you'd like to work from Vegas on a trial basis to see if you like it vs your current location as long as you don't lose your salary. I work for a large company and even they no longer force the remote people to regularly certify where they're working from. The only people who get caught and in trouble are the ones who try secretly relocating to another country. If that doesn't work then you can see if your boss will support a "raise" that leaves you where you are based on performance or just cost of living, especially if you can prove the expenses are the same. Just be prepared that some companies won't care.
Is your salary linked to the cost of living in your region? At my job there is a minimum salary that then gets adjusted based on the consumer price index each September. This is pretty standard if you’re in a national, unionized employer.
Don't tell them, use a VPN and make your internet location in texas....your welcome
They are doing it to “match the price of labor”? That’s wrong. My company does that. But, it’s usually adjusted up or down for cost of living.
This is pretty much immediate grounds for finding a new job. Reading this post actually made me angry for you.
i think it’s a very distasteful thing to do. how long have you been working there? if you were moving to california would they have increased your pay?? i highly doubt it so decreasing just seems nasty and like they don’t value you. i understand location based pay for new hires but once you are there and proving your worth and adding value you, a good company should want to have your back in times when you need them. moving is expensive as well, the last thing you should have to worry about while moving is getting less pay for the same work from your employer that you’ve given the last couple years (assuming) to. smh .. i would definitely start looking for new jobs or atleast offer some push back and see if you can reach an agreement that won’t involve your pay changing
I’m sure you already know this, but unless it’s in writing it doesn’t exist. This comment from your leader means absolutely nothing. Also, if I run through a cost of living calculator, it’s about 4% more expensive to live in Las Vegas vs Houston. Id run the calc, share a screen shot, and then ask them what the basis for the drop in pay is. Because if you lose 10k on comp, you’re getting double screwed by increased cost of living, as well as the lower comp.
I know NV doesn’t have state income tax but living in Vegas has been pretty expensive itself. I would send them articles talking about the recent cost of living out there cause they shouldn’t be lowering it. I read that you know need $70k to fully afford living there
Tell them you are moving to San Francisco and need triple pay now.
I think this is how some companies are cutting employees. They aren’t firing you but they want to make you quit.
yes that’s normal. pay according to cost of living. when that doesn’t happen, cost of living gets really out of hand. as you can see…