Many Companies have a rule that workers cannot talk to each other about how much money they are paid. But if the Company is big enough to be covered by the National Labor Relations Act (and most private businesses are), a rule forbidding employees from talking about pay is ILLEGAL. Both union and non-union workers have a right to talk about their wages.
In a recent case, the National Labor Relations Board ordered that a business change its policies, reinstate a fired employee, and pay the employee back wages.[1] The business had a rule stating: “Dissemination of confidential information within [the company], such as personal or financial information, will subject the responsible employee to disciplinary action or possible termination.” The Company used the rule to fire an employee who had complained to other employees about his heavy workload and pointed out that the Company could have hired several employees to help take on the workload for the $400,000 salary it was playing a new executive. When the worker was fired for violating the confidentiality policy, he filed a charge with the National Labor Relations Board, which found the rule and the employee’s termination was illegal.
The worker was protected by the National Labor Relations Act, even though there was not a Union in his workplace. The Act gives employees the right to engage in group action – including talking about wages – and it prohibits any employer, Union or Non Union, from interfering with, restraining, or coercing workers who exercise their rights.
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[1] MCPc, Inc., 360 N.L.R.B. No. 39 (Feb. 6, 2014).