No, most companies can’t stop people from sharing their paychecks with other employees.
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Federal law allows most people who work in private companies to discuss with colleagues how much they earn.
For many, talking about salary in the workplace is often considered taboo.
Nearly half of all full-time workers surveyed by the Women’s Policy Research Institute in 2017-2018 reported that their employers discourage or prohibit wage discussions.
But are these actions legal? This is what CHECK reader John wanted to know. He emailed us to ask, “Can a company force you not to reveal your salary to co-workers?”
QUESTION
Can most companies stop people from sharing their paychecks with other employees?
SOURCES
ANSWER
No, most companies can’t stop people from sharing their paychecks with other employees.
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WHAT WE FOUND
Federal law allows most people who work for private companies to share their salary or wages with other employees.
According to the federal government’s National Labor Relations Board (NLRB), the National Labor Relations Act (NLRA) covers most private sector employers, including manufacturers, retailers, private universities, and healthcare providers.
Employees covered by the NLRA may discuss their pay outside of work, during breaks between work, or even at work if “non-work conversations” are allowed.
These conversations can also take place via written messages, including on social media, although some employers may have rules that you can’t use their electronic communications equipment, according to the NLRB.
But any rules that expressly forbid payment discussions are illegal under the NLRA.
“Even informal, unwritten policies or practices, such as executives urging employees not to discuss pay, are illegal under the NLRA,” California attorney Melora Garrison wrote to Nolo.
Employers also cannot “punish you or take any action against you” for talking to another employee about your wages, the NLRB said in a statement.
More from CHECK: In most states, employers may ask you for a credit report.
While most private sector workers can discuss compensation with their co-workers, there are some workers who cannot do so under federal law.
The NLRA rules do not apply to people working in these industries due to other laws or regulations:
- Federal, state and local government employees
- Employees of companies covered by the Railroad Labor Act, such as employees of interstate railroads and airlines.
- agricultural workers
- Employees of religious organizations “involved in [carrying out] the religious purpose of the organization, such as teachers in church schools”
- Independent Contractors
According to Garrison, these employees are “subject to the policies of their employers and may not be able to negotiate their pay.”
But this does not mean that there is no protection for these workers.
Some of them may belong to a union or, in the case of civil servants, their salary data is already publicly available.
State and local laws may also allow some non-NLRA-protected workers to negotiate their pay without repercussions.
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texasstandard.news contributed to this report.