Employers generally try to control the wages they provide workers to minimize their staffing expenses. They may attempt to offer each new hire or recently-promoted worker the lowest wages that they can potentially justify. People holding similar roles within the company could receive vastly different pay.
Many companies include information in their training manuals or worker handbooks warning employees that disclosures of their wages or benefits packages are against company policy. Workers who worry that they have not received fair compensation may want to discuss their wages with others in the company but may fear losing their jobs or facing other penalties.
Can employers prohibit workers from discussing their wages with one another?
Wage discussions are part of organizing
The ability to discuss working conditions and compensation is a critical labor law protection. Employment laws largely focus on the rights of individual employees, while labor laws relate to the right of workers to organize and bargain collectively with employers.
The ability to discuss wages is a key component of effective organization and collective bargaining. Regardless of what some companies claim, the federal standards regarding labor rights make it clear that wage disclosure is a protected activity.
Employees should not need to fear punishment or job loss because they disclose their pay rate to others. They can disclose what they earn or ask others about their wages without facing employment consequences.
Workers who believe they have experienced violations of labor law, including termination or other punishment after discussing wages with coworkers, may have grounds to take legal action against their employers. Documenting a company’s response to protected activities can be beneficial for those experiencing inappropriate employer retaliation.