Restrictions on workplace conversations regarding compensation were once commonplace. Employers often implemented policies prohibiting employees from sharing salary information, believing it fostered competition and discontent. For example, a company might have included a clause in employment contracts or employee handbooks forbidding such discussions.
Openness about compensation is now considered beneficial for fostering fair pay practices and promoting pay equity. Transparency can help identify and address pay gaps based on factors like gender, race, or age. Historically, pay secrecy contributed to systemic inequalities. The National Labor Relations Act (NLRA) generally protects employees’ right to discuss wages, hours, and other terms and conditions of employment. This right applies to most private sector employees, regardless of union membership. This legal protection has significantly shifted the landscape, empowering employees to advocate for fair compensation.