06/20/2014 03:49 pm ET Updated Aug 20, 2014

3 Tricks Companies Commonly Use to Scam Employees

If you've worked in corporate America you're likely familiar with some of the scams employers use to screw employees. This article isn't necessarily for you. This article is for recent college grads or anyone for that matter that is new to the workforce and getting their first "real job."

1.) Fancy Title with Low Wages
Wouldn't it be nice to have director or manager in your job title? It sounds great on a business card, looks good on LinkedIn and it's something you can brag and boast about to friends and family on Facebook, but what really matters is how much money you earn. Employers know how much people foolishly value their job title. It appeals to their narcissism. Don't feel bad though. This isn't your fault. You were conditioned to believe that job titles have value, but you weren't conditioned to ensure your job title matches your earnings. Employers are taking advantage of the psychological weakness of employees by giving them fancy titles with low wages. In case you think that earning a fancy title at Job A will allow you to earn more money once you move to Job B, you will be in for a rude awakening. Your next employer will look at your previous job title purely as a means of helping determine where your skillset and experience lies. They will look at your previous salary to determine how much they're willing to offer you. So since Job A screwed you over, you will continue to be screwed over at subsequent companies. It's a vicious cycle and it only ends when you put your foot down and are only willing to accept wages that match or exceed the median earnings of your position within your career field.

2.) Made Up Titles
Fancy titles are one thing, but made up titles are even worse! Employees can become victim to made up titles on all levels of business. At a hip small or medium sized business, they like to make up titles like Chief Creative Officer. Big businesses like to make up titles like Sr. Consultant. I will give small and medium sized businesses the benefit of the doubt. They're at least making an attempt at creating an environment that feels exciting. When a big business gives you a generic title such as Sr. Consultant, they're merely trying to make you unhireable elsewhere, as well as make it impossible for you to develop a comparative analysis of how your job title compares to salary expectations across your industry. This term is generic and worthless, and doesn't extend value outside of the bubble it's provided in.

3.) Contract-To-Hire Lures
Contract-to-hire. It's the great lure that so many businesses are using to attract young, fresh-faced talent. They promise that if you perform well, they will give you a full-time salaried position. This is often times total B.S. In my book What Next? The Millennials Guide To Surviving and Thriving in the Real World, I recommend and encourage Millennials to pursue contract positions, as they are easier to obtain. This helps you earn experience and you're generally compensated very well. It's also a great alternative to an unpaid or low-paid internship. However, the caveat is that you shouldn't make a career out of contract positions and you should also be aware that many companies will not hire you once your contract ends. This is merely a ploy to get you on board to serve their current needs. If they wanted to hire you, they would have interviewed you and verified your resume' to validate whether or not you are a worthy employee. Contracting you is merely their ploy to keep budget down and escape taxes and benefits.

Michael Price is an entrepreneur and author of What Next? The Millennial's Guide To Surviving and Thriving in the Real World. An advocate of ideas for radical change, he has received critical acclaim for his lessons in education, career, entrepreneurship, and personal finance.