Ask HN: Why is Pave legal? • Hacker News Board

Re: Ask HN: Why is Pave legal?

#31

Post by tazu » Wed, Sep 11, 2024, 11:24 AM UTC

> Pave is a YC-backed startup

This thread is getting removed from the front-page in 3... 2...

Re: Ask HN: Why is Pave legal?

#32

Post by rocqua » Wed, Sep 11, 2024, 11:25 AM UTC

If this were illegal, so should the KornFerry Hay system be, and that system has existed for decades.

Re: Ask HN: Why is Pave legal?

#33

Post by dctoedt » Wed, Sep 11, 2024, 11:29 AM UTC

nowyoudont wrote: post #11

mcntsh wrote: post #5

Wage fixing is when multiple companies agree to set wages at a certain amount. Sharing compensation data across companies doesn't necessarily mean wage fixing. Company A can use the compensation data from Company B to try and compete better for talent. Not saying thats what it will be used for, but it's technically not wage fixing.

I'm asking this as someone with 0 legal knowledge: doesn't the context matter? If every company takes this data and is like "we want to pay at the 95th percentile" (which is what they all do), that seems like wage fixing even if they're not all agreeing to it together.

> If every company takes this data and is like "we want to pay at the 95th percentile"

It's thought by some that this is how CEO compensation has gone up so much: Corporate boards of directors have compensation committees, which are fed survey data about comp ranges; a comp committee will say, "We want our CEO's comp to be in the top quartile" — which, as time goes on, leads to an inexorable upward ratchet effect.

Re: Ask HN: Why is Pave legal?

#34

Post by jskrablin » Wed, Sep 11, 2024, 11:30 AM UTC

sameoldtune wrote: post #24

chipgap98 wrote: post #21

Earlier quoted context omitted.

Stochastic wage fixing is still wage fixing

Your honor, the algorithm made me do it!

ChatGPT did it!

Re: Ask HN: Why is Pave legal?

#35

Post by Fokamul » Wed, Sep 11, 2024, 11:31 AM UTC

Lol try this here in EU.

Re: Ask HN: Why is Pave legal?

#36

Post by dsotirovski » Wed, Sep 11, 2024, 11:33 AM UTC

Gratitude for the expose. I was(and assume most here were as well) completely unaware of Pave. I will, and hopefully other potentially impacted, look up if I am affected by this and if so - share experiences/info here.

Re: Ask HN: Why is Pave legal?

#37

Post by exabrial » Wed, Sep 11, 2024, 11:34 AM UTC

Wow first we got our rents fixed, now we're getting our wages fixed. Awesome

Re: Ask HN: Why is Pave legal?

#38

Post by master_crab » Wed, Sep 11, 2024, 11:34 AM UTC

paxys wrote: post #29

Collecting and sharing data is in itself not illegal. RealPage was also using the data to algorithmically generate a rent number and encouraging landlords to automatically use that number with no room for negotiation. It literally branded itself as a service that would prevent landlords from bidding against each other. That part is what pushed it into collusion. And regardless of whether it is legal or not, the probl…

No. DoJ is suing RealPage because they used non-public, sensitive data to set rental prices in a way that reduces competition. Literally what these guys are doing.

Complaint: https://www.justice.gov/opa/media/1364976/dl?inline=&utm_med...

more readable Press release for DoJ on RealPage: https://www.justice.gov/usao-mdnc/pr/justice-department-sues...

Re: Ask HN: Why is Pave legal?

#39

Post by benterix » Wed, Sep 11, 2024, 11:39 AM UTC

tazu wrote: post #31

> Pave is a YC-backed startup This thread is getting removed from the front-page in 3... 2...

I really, really hope they don't.

Re: Ask HN: Why is Pave legal?

#40

Post by that_guy_iain » Wed, Sep 11, 2024, 11:39 AM UTC

Because it's not wage fixing?

To be competitive you need to be paying more than others not the same as them. This is why FAANG got themselves into a fix of paying 500k for people they would have paid 200k for a year or so beforehand.