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Google has rolled out a new internal calculator to explain potential pay cuts to employees who choose to work remotely, according to a new report.
And that suggests the company is considering penalizing its suburban workers versus employees who work remotely from cities where Google has offices, according to Reuters.
Calculator screenshots show, for example, that Google employees who previously traveled to Google’s Manhattan offices from Stamford, Connecticut would see their wages cut by 15% if they chose to continue working. home.
In contrast, “Googlers” who live in New York’s five boroughs and choose to work from home permanently would not see their wages cut at all.
Screenshots obtained by Reuters showed differences of 5% and 10% for commuters living in the Seattle, Boston and San Francisco areas.
Google employees moving further away from company offices have been warned they could face even more severe pay cuts. A worker who moved from San Francisco to Lake Tahoe, another expensive area in California, would see his pay cut by 25 percent.
This would mean that an employee with a salary of $ 150,000 would suddenly earn less than $ 112,000 per year.
The calculator indicates that it uses metropolitan statistical areas from the US Census Bureau, or CBSA. Stamford, Connecticut, for example, is not part of the New York CBSA, although many people who live there work in New York.
The news of the Google tool comes amid a larger debate among tech companies about remote working and compensation.
Facebook, Twitter and LinkedIn have all warned employees who plan to leave expensive cities like New York and San Francisco that their pay will be cut – while small tech companies like Reddit and Zillow say they will pay the same regardless of how much. where the employees live.
Jake Rosenfeld, a sociology professor at Washington University in St. Louis who studies wage determination, said Google’s wage structure sounds the alarm bells about who will feel the impacts the hardest, including families.
“What is clear is that Google doesn’t have to do this,” Rosenfeld told Reuters. “Google paid these workers 100% of their previous salary, by definition. So it’s not as if they can’t afford to pay their employees who choose to work remotely in the same way they’re used to receiving.
Google, which has around 140,000 employees worldwide, reported $ 61.9 billion in revenue in the second quarter of this year alone.
The company did not immediately respond to a request for comment from The Post and did not address the Stamford commuter problem in a statement to Reuters.
“Our compensation packages have always been determined by location, and we always pay at the top of the local market based on an employee’s workplace,” a Google spokesperson told Reuters.
With post wires
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