| Sumario: | Organizations have been argued to favor fathers over childless men and skilled fathers over less‐skilled fathers, but group wage inequalities vary across as well as within establishments. This article theorizes class differences in the contribution of being employed in a high‐wage firm to the fatherhood wage premium. Analyses of linked employer–employee data from the Canadian Workplace and Employee Survey reveal that sorting into high‐wage establishments accounts for 60% of the economy‐wide premium for less‐educated and nonprofessional fathers, whereas high‐skilled fathers tend to work in lower wage establishments but receive the largest net fatherhood premium within firms. Among the subsample of fathers who changed employers in the past 5 years, less‐skilled fathers fared worse, whereas high‐skilled fathers sorted into high‐wage firms. Results thus suggest that employment in a higher wage firm likely enables less‐skilled men to transition to fatherhood, whereas high‐wage employers may discriminate in favor of only high‐skilled fathers in hiring.
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