Employees have the right to discuss wages at work without fear of retaliation or unfair disciplinary action. Pay transparency supports fairness, protects against discrimination, and strengthens workplace rights under federal employment laws.
By Brad Nakase, Attorney
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You may have been taught as a child that discussing money in public was impolite. This is not to suggest that it is unlawful to discuss your finances in public. Of course, your employer can not punish or fire you because you discussed your compensation and benefits with your fellow workers (federal law). “Is it illegal to talk about wages in the workplace?” The answer is no.
Relevant section of the NLRA (National Labor Relations Act) guarantees you the right to express your compensation with your colleagues without being concerned about retaliation. According to the law, your right to speak out on your salary is fair even in states that uphold the right to work, such as Florida.
However, just a few companies support their workers’ use of their freedom to talk about their salaries for a variety of reasons. Sadly, even fewer workers are aware that they have this right. There are salary disparities in our culture, and because they lack the authority of their supervisors, workers may be discouraged from bringing up such issues.
Employers who try to terminate workers or take other retaliatory action against them for asserting their rights could face legal action and be held accountable for compensating all impacted workers. Many workers still hesitate, asking, “Is it illegal to talk about wages according to my company policy?”—not knowing that such policies are unenforceable if they violate federal law.
If your boss overhears you and another worker talking about compensation, they are not allowed to:
To know about the rights you have in the workplace, you can always consult an employment law expert. It is your right to make your lawyer enforce such rights in confidence, just to make your working life as well as that of your colleagues more enjoyable.
A question you may ask yourself is: “Is it illegal to talk about wages according to the company rules?” That is, can the company establish regulations that forbid you from holding these talks in the first place, instead of disciplining you after they take place? The answer is “no” here as well.
Your employers cannot ban or limit you from talking about your salary with fellow workers. Such discussions may happen during breaks, when you are not at work, or even when you are at work in a case where you are allowed to chat about something that is beyond your job. You have these rights regardless of whether or not you are represented by a union.
Such efforts are unlawful and cannot be enforced by law, even if your employer provides you with a written agreement that prohibits you from discussing salaries with other employees. Let’s say, for instance, that your employer gives you a policy in the business handbook that prohibits you from discussing your salary or fringe benefits with other staff members. The law forbids this kind of clear prohibition, and it cannot be implemented.
However, let’s say your company doesn’t have a policy that forbids talking about pay, but instead informs you that it is “disrespectful” to them and therefore they prefer that you just come talk to management about any wage-related issues you may have. Since wage negotiations are not specifically prohibited, they are not unlawful. However, it would be unlawful for your employer to retaliate against you if they try to do so after you talk about your wages with other workers.
Consider a scenario in which your employer enforces a rule that forbids you from engaging in any conversations unrelated to work since doing so can be distracting and may result in a mishap at work. Such a regulation might hold up in court if the business has a good basis for banning all unnecessary communication while employees are on the clock.
If the employer can demonstrate that there is a specific necessity that makes it dangerous to have non-essential conversations regarding personal matters, the likelihood that the rules will be enforced is considerably higher. In the absence of these dire circumstances, though, you should be able to talk about your pay with anybody you want.
Not all bosses are aware of their authority’s boundaries, particularly when it involves salary negotiations. Your employer may not have bad motives if they attempt to stop you from discussing pay during business hours. It’s possible that your employer is merely unaware of the NLRA’s provisions.
To clear up any confusion your employer may have had about letting you talk about pay at work, you, your lawyer, and your company may need to have a conversation. By following the law, the company avoids the risk of a costly lawsuit, and this settlement may improve relations between you & your employer.
You may need a lawyer when your employer still fails to allow you to discuss your pay in the workplace or when you suffer any form of discipline or retaliation because you do so. The National Labor Relations Board is entitled to enforce the NLRA, and your employment law attorney will help you in setting up and filing a request to the board.
Try to document the specifics of any disciplinary action or retribution you have experienced from management over your pay before seeing your lawyer. Make a chronology with the following notes, if at all possible:
Any emails, texts, phone logs, or other correspondence you get from your boss or other coworkers regarding the incident/incidents should also be saved.
By acting, you show your boss that you value your rights and are determined to receive the safeguards you are entitled to.
Although retaliation may take many different forms, it is commonly understood to be any adverse employment action that is taken against you because you participated in an activity that was protected. Retaliation could take the following forms when discussing pay with other coworkers:
You should think about working with a lawyer to submit a claim to the National Labor Relations Board as quickly as you can if your employer is aggressively retaliating against you. Whatever proof you have, such as witness testimonies and communication with your employer, will be reviewed by the Board. If an NLRA breach is discovered, the Board has the authority to take proceedings against your company and order that you get compensation for the unfair outcomes you experienced.
As a requirement of employment, some firms demand that new hires sign confidentiality agreements. These contracts restrict the information that workers can divulge to parties both inside and outside the employer’s company. They are typical of workplaces that utilize valuable or distinctive intellectual property.
A clause that forbids you from sharing your pay with others is typically not enforceable, but agreements regarding confidentiality are. Since the company cannot force you to forgo this crucial workplace safeguard in exchange for a job or other benefits linked to your job, any such clause in a contract of confidentiality should be removed.
You should demand that your company take out any such language from your confidentiality agreement before you sign it. An expert in California employment law can discuss this with your employer and convince them that such a clause is unlawful.
If you’re asking yourself again: “Is it illegal to talk about wages if I signed a confidentiality agreement?” know this: your right to discuss your pay cannot be waived, even though you signed a document.
A non-compete agreement restricts your capacity to work in competition with an employer once you leave your position, just like a confidentiality agreement does. Employers who have workers with unique or specialized abilities may benefit from this.
Non-compete clauses that are reasonable and do not reasonably prevent you from earning a livelihood are enforceable, similar to confidentiality clauses. Nevertheless, there is no law that allows such a contract to include a clause according to which you are not allowed to discuss your salary with anyone, whether in the workplace or otherwise. Before you accept the contract, the company should be forced to remove the clause after knowing about it.
An employer could assume that by prohibiting employees from discussing their wages with each other, they may be able to create a sense of unity in the workplace. Since it saves the firm money, the employer can believe that they can even get away with paying some of the workers less for doing the same job.
The possible rewards coming from the possible consequences of forbidding you and your colleagues from talking about the earnings are assumed by the employer. In case you and your other workers cannot communicate frequently, it is possible that there might exist huge remuneration disparities that still prevail in your firm. It is not only unfair, but these pay gaps can also be illegal and discriminatory.
Policies that do not allow you to discuss your pay with your coworkers may also not allow you an easy time to plan and raise your concerns about your pay with the management. You may be afraid to raise the issue with the management on your own, and if you cannot discuss the topic of wages and salaries in the workplace with colleagues, it will be difficult to know how many of them are concerned about this topic.
Employees are kept in ignorance about their circumstances and are unable to advocate for themselves when discussions regarding pay and benefits are prohibited. Employee morale may suffer as a result, and turnover may rise since workers may believe they have no other options for improving their circumstances.
So, is it illegal to talk about wages? Absolutely not—and knowing that is the first step toward ensuring fair treatment. Protecting your rights to equitable treatment depends on your capacity and right to speak with other workers about your compensation. When you and your fellow employees are not fairly treated and paid, then your productivity as well as the well-being of the company is affected.
Openness in payment also ensures that everyone is treated equally, and it enables a worker to control their own career. It might be hard to know whether the banned speech in your company is legally covered speech or not. Contact a learned lawyer as soon as possible in case you feel persecuted or in case you require legal advice.
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