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.
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:
Across the country, states are steadily moving toward requiring pay transparency, most commonly by forcing employers to disclose a salary or salary range in job postings and sometimes by banning questions about salary history.
These laws aim to shrink pay gaps and give applicants and workers a clearer sense of market pay so they can negotiate more fairly. The patchwork of rules varies by who must comply, what exactly must be posted (a single number vs. a range, benefits descriptions, etc.), and when the rules apply to remote jobs, so employers that operate in multiple states need to check each state's requirements.
California was one of the big early movers: SB 1162 expanded earlier pay-disclosure rules and requires employers to include pay scales in job postings and provide certain pay data to employees upon request — with the current posting rules in effect since January 1, 2023.
New York similarly requires employers to include a good-faith salary or salary range in postings for jobs performed in the state. About a dozen other states have similar measures.
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.