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A wage distortion happens when a wage order increasing the rates of wages
removes or significantly reduces the pay advantage of one position of
employees over another. This change has to be corrected. The following are the
essential elements of a wage distortion:
1.) The company has a hierarchy of positions with corresponding salary rates
2.) A wage order significantly changes or increases the salaries of the
employees in the lower level but doesn't have a corresponding increase for the
salaries of the employees in the higher level
3.) The distinction between the positions/groups of employees is eliminated
4.) The distortion exists in the same region of the country