Punishing Employees For Discussing Compensation Is Illegal
It’s not uncommon for employers to try to prevent workers from discussing their wages and benefits. Once word gets out, others may feel they’re not compensated fairly and ask that they be at least as well paid, if not better, than their co-workers. Preventing these discussions makes sense from an employer’s perspective, but that doesn’t mean it’s legal as a breach of contract lawyer knows all too well.
Transparency not only affects worker rights under state and federal labor law. Anti-discrimination laws forbid unequal employee wages based on their protected bases (race, color, sex, religion, national origin, and disability, among others). These claims are difficult, if not impossible when learning what others are earning is impossible.
National Labor Relations Act Protects Worker Communications
The National Labor Relations Board (NLRB) enforces the National Labor Relations Act (NLRA). The law covers collective worker actions to improve wages and work conditions. But it’s not limited to unionized workplaces or where workers are organizing for collective bargaining.
The NLRA covers much of the nation’s workforce, unionized or not, based on their effect on interstate commerce, according to the NLRB. For non-retailers, jurisdiction is based on whether the employer has at least $50,000 of sales of goods or services provided out of state (“outflow”) or purchases from out of state (“inflow”). Either can be direct or ‘indirect’ (made through a third company).
Rules Against Discussing Wages Are Illegal
“Policies that specifically prohibit the discussion of wages are unlawful as are policies that chill employees from discussing their wages,” states the NLRB. As our friends at Focus Law LA can share, employees covered by the NLRA have the right to communicate their wages and working conditions to:
- Coworkers
- Labor organizations
- The media
- The public
The NLRB considers wages a vital term and condition of employment, and discussing them can lead to organizing or other actions for mutual aid or protection. The NLRB states that employees covered by the NLRA may discuss wages and terms and conditions of employment:
- In face-to-face conversations
- Over the phone
- In written messages
These communications can take place:
- When away from work
- While on a break
- During work, if non-work conversations are allowed
Workers have these rights whether a union represents them or not.
Retaliation Against Discussing Wages Is Illegal
Whether you have an official policy against these discussions (which would be illegal) or an unwritten rule, it would violate the NLRA to:
- Punish a covered employee for discussing wages
- Interrogate workers about possible conversations
- Threaten an employee with punishment if they have these conversations
- Put an employee under surveillance to see if they’re having these conversations
If you have questions about preventing employees from discussing certain matters or believe a union is trying to organize your workforce, contact your attorney to discuss your options.
A lawyer will examine your specific situation to see what, if any, legal action can be taken. It is important to consult legal counsel before taking any actions on your own to ensure that everything you and your company does follows the letter of the law. Contact a lawyer near you today.