I am a US based employee of the US subsidiary of a German company. Prior to the start of an earlier plant manager, employees in my situation received an extra 12.5% salary for enduring working in Mexico. Employees, who arrived subsequent to that manager do not get the extra pay. The earlier arrivals still do. Is this legal?

Alex,

I'm a bit confused. Can you provide more information?

As I understand it you have employees working in Mexico? Up to "X" date all employees working in Mexico were given a salary differential/bonus of 12.5% for working in Mexico? Currently all employees who began working in Mexico after "X" date are not given the additional compensation?

Is that correct?

Was the 12.5% in additional compensation part of a written policy? Do any of the employees working in Mexico have a signed employment agreement? In the past, was the 12.5% compensation a discretionary salary item?

Are the employees permanently based in Mexico? Or are the based in the US and working in Mexico for short periods?

Carole