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Some companies use the 2-tier compensation structure. This approach places new employees on pay scales which are lower than the pay scales of employees hired before the tiers were in place. These pay structures have been controversial because they violate a basic union tenet: equal pay for equal work. A recent study examined both the main and the interaction effects of knowledge of the pay structure and social and self-pay referents on pay attitudes in a setting with wage and job-duty tiers. Knowledge of the pay structure when hired and expected pay were among the most important predictors of pay fairness and pay satisfaction. The significant interaction effects found across tier levels indicated pay knowledge had a differential impact on pay attitudes. The interaction effects, however, did not support the assumption that the reason attitudes differ among employees on various tier levels is that they use different referents.