Restricting employee discussions about compensation was once a common practice. Employers often used policies and practices that discouraged or even prohibited employees from sharing salary information with one another. This could take the form of explicit rules in employee handbooks, verbal warnings from management, or even implied threats of disciplinary action.
Openness around compensation fosters a fairer and more transparent workplace. When employees are free to discuss their salaries, they can identify potential pay disparities based on factors such as gender, race, or age. This transparency can help organizations address inequities and build a more equitable compensation system. Historically, pay secrecy has contributed to discriminatory practices, allowing unfair pay gaps to persist unchecked. The National Labor Relations Act (NLRA) generally protects employees’ rights to discuss wages, hours, and other terms and conditions of employment.
