Question

The established pay range at a company for customer service representatives is $10 to $12 an hour. Which of the following is an example of a red circle rate?

A. An employee earns $15 an hour.
B. An employee earns $9 an hour.
C. An employee earns $10 an hour.
D. An employee earns $12 an hour.

Answer 1

The correct example of a red circle rate when the pay range is $10 to $12 an hour is an employee earning $15 an hour, as it exceeds the established range.

Step-by-step explanation:

A red circle rate refers to an employee's pay rate that lies above the established maximum of the pay range for their job. In the scenario provided, where the pay range for customer service representatives is $10 to $12 an hour, a red circle rate would be illustrated by an employee earning more than the $12 upper limit. Therefore, the correct answer would be:

A. An employee earns $15 an hour.

Since $15 is above the established pay range, this employee's rate can be identified as a red circle rate. This usually occurs due to factors like longevity, exemplary performance, or change in job structure that keeps the incumbent at a higher rate than the new maximum.