It has long been illegal for employers to ban their employees from discussing pay. Yet these workplace "gag rules" continue to thrive. About 50% of American workers report that their employers prohibit or discourage discussions of wages and salaries. Gag rules can open the door to wage suppression and pay inequity, which can have a particularly damaging effect on women and people of color.
If employer policies requiring pay secrecy are unlawful, why are they still so common? One reason is that workers don't know their rights.
Here's a look at what the law says about discussing your pay with coworkers.
Under the National Labor Relations Act (NLRA), which was passed in 1935, almost all private sector employees have the right to communicate with coworkers about their wages. This right is broad, and encompasses many different types of communications, including:
It is unlawful for your employer to have a work rule, policy, or hiring agreement that prohibits employees from discussing their wages with each other, or that requires employees to get the employer's permission to have such discussions. Even informal, unwritten policies or practices, such as when supervisors urge employees not to discuss pay, are illegal under the NLRA.
In addition, if you communicate about your pay with other employees, is unlawful for employers to punish or retaliate against you in any way, or to interrogate you, threaten you, or put you under surveillance. If your employer violates the NLRA, you may file a charge against them with the NLRB.
In 2014, President Obama signed an executive order effectively extending the NLRA rule to all businesses that are awarded federal contracts. Under this Order, federal contractors are prohibited from retaliating against employees who discuss their pay.
Although most employees have the right to discuss wages and compensation, there are a few types of workers who can't lawfully discuss their pay:
Not only is it illegal under federal law for private sector employers to prohibit employees from discussing pay, but in some states, the laws go so far as to require employers to disclose pay ranges to employees or job applicants.
This trend began in 2018 when California required employers to provide their pay scale to external job applicants upon request. Other states followed suit, and by 2021, states such as Connecticut, Nevada, and Rhode Island expanded on the California precedent by enacting laws requiring employers to provide pay information to current employees at hiring, when an employee changes roles, or upon first request (as well as providing pay scales to external candidates).
Colorado is unique in requiring that pay ranges be included in all job postings, and New York City will soon have a similar law. As of 2022, at least seven states and three cities have laws requiring pay transparency.
If your workplace has an unlawful pay secrecy policy, or you have been retaliated against for discussing pay, an experienced employment lawyer can help you evaluate your potential remedies.