Protected conversations about wages may take on many forms, including having conversations about how much you and your colleagues and managers make, presenting joint requests concerning pay to your employer; organizing a union to raise your wages; approaching an outside union for help in bargaining with your employer over pay; and approaching the National Labor Relations Board for more information on your rights under the NLRA. For the most part: no, employers may not prohibit employees from discussing compensation according to the National Labor Relations Board (NLRB) and an April 2014 Executive Order from former President Obama. Then they may not be able to fire you for refusing to disclose. Decades of research show salary secrecy disproportionately harms women and workers of color, who are less likely than equally qualified white men to negotiate base salaries or raisesand when they do, they ask for less. Essential functions are the fundamental job duties that you must be able to perform on your own or with the help of a reasonable accommodation. Provide resources and training for management so they are aware of labor rulings and know how to respond to employees questions and requests. And many states have passed pay transparency laws for employees. An employer cannot refuse to hire you because of a slightly increased risk or because of fears that there might be a significant risk sometime in the future. Why Do Companies Commonly Place New Hires On Probation? Yes. It can be based on many things: Pay equity is a hot topic and is driving some companies to be more transparent in their compensation, from posting pay ranges (minimum to maximum) to indicating pay grades (without discussing exact figures) for jobs. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. Government." If So, Please Give Details, Including Dates (required), 9. As a result, the employee was given back pay and offered reinstatement, and the employer changed its handbook. This program is designed to help people with disabilities understand their rights and to help employers understand their responsibilities under the law. For example, if your company is determining raises. Women, employees of color and low-wage workers disproportionately forced out of work must be brought back in with the right support and equitable pay, Johnson says. And if they do not have your permission, they may violate the agreement. To prevent discrimination, inequity, and disputes over pay, it helps for employers to have a system of checks and balances when it comes to salary. Copyright 2023 MH Sub I, LLC dba Nolo Self-help services may not be permitted in all states. If salaries are public, it could lead to lower salaries overall. In addition, since some private and governmental employers are already covered by nondiscrimination and affirmative action requirements under the Rehabilitation Act of 1973, EEOC, DOJ, and the Department of Labor similarly coordinate the enforcement effort under the ADA and the Rehabilitation Act. To choose not to engage in any of these protected concerted activities. In a nutshell, the NLRA protects most employees right to discuss their salary, and President Obamas executive order applied that same right to federal employees and contractors. These restrictions are typically found in the collective bargaining agreement. And your employer cant stop you from discussing your salary with coworkers. Under this Order, federal contractors are prohibited from retaliating against employees who discuss their pay. Employers can generally inform customers or vendors that an "employee has tested positive for COVID-19" or that an employee "has been exposed to COVID-19," but the employee(s) should not be identified. If youre like most companies, your employees are the backbone of your organization. Q. Rather than punish employees for discussing wages, employers should strive to have well-written compensation policies that inform all employees how they decide salary. A. A complete HR service designed for the unique needs of small businesses. This is not a prohibited act. Find out what makes us tick. Advocates say increased discussions about pay, especially transparency from employers, can be another tool to help close the gender and racial wage gaps. For instance, they may post the salary ranges for each position on their website or job postings. No. By relying on your companys pay rates as the guide, it creates a more equitable pay structure. There are a few pros to sharing salary information: This is the most common argument for sharing salary information. Employers can never reduce pay for hourly workers below minimum wage. Encourage a workplace where employees arecomfortable approaching managementor HR personnel with questions or observations about salaries or working conditions. This case illustrates a common misconception that employers can forbid employees from discussing their salaries. Your download is being prepared. There is no general prohibition against employers disclosing employees salaries to other employees. Other Comments - Please provide a few specifics so we know if we're the right law firm to help you with your matter. To find out if you have a legal claim and develop a strategy for moving forward, contact our office for a consultation. Section 1 (b): Exceptions. Q. However, these inconsistencies should be documented as part of a pay structure analysis. Following a job offer, an employer can condition the offer on your passing a required medical examination, but only if all entering employees for that job category have to take the examination. In fact, employees' right to discuss their salary is protected by law. Government Employee: Are you a government employee? However, your employment contract may prohibit your employer from disclosing your salary information. One typically considers salary information to be shared by your employer just with IRS," he said. Save my name, email, and website in this browser for the next time I comment. In general, employers may not deduct from an employee's wages or compensation for the cost of damage or depreciation to the employer's property. Beginning January 1, 2018, an employee of a public employer may file an Equal Pay Act claim against his or her employer. However, they are not required to keep your salary information confidential. Your employer may conduct voluntary medical examinations that are part of an employee health program, and may provide medical information required by State workers' compensation laws to the agencies that administer such laws. Yes, but most probably won't disclose too much information. Other states followed suit, and by 2021, states such as Connecticut, Nevada, and Rhode Island expanded on the California precedent by enacting laws requiring employers to provide pay information to current employees at hiring, when an employee changes roles, or upon first request (as well as providing pay scales to external candidates). About 50% of American workers report that their employers prohibit or discourage discussions of wages and salaries. It is an agreement between the union and the employer. Sometimes positions have a significant strategic importance and the pay rate can be defended as acceptable. One reason is that workers don't know their rights. Employers tend to gather a lot of paperwork on employees, from employment applications and resumes to benefits forms, performance evaluations, disciplinary documentation, contact information, and even medical records. Without speaking to you, Bob goes to your companys Human Resources Department and demands to know what you are being paid. If your workplace has a pay secrecy policy, or you are disciplined or terminated for discussing salary with others, you may have a legal claim. This could lead to them feeling resentful toward their colleagues or their employer. website until it is completed. This could lead to conflict and tension among employees. A. However, this information is typically only accessible to employees of the company. More often than not, pay secrecy policies are unwritten and employees just assume they are not allowed to discuss compensation. Under the Equal Pay Act, an employee must file a claim within two years from the date of the violation. If someone feels underpaid, it can lead to frustration and resentment. Suspicion, distrust and other negative emotions often result from salary discussions and seriouslyaffect company morale. But now, some laws protect employees from retaliation if they do discuss salaries. You may obtain this booklet in alternate formats, upon request by dialing 800-669-3362 or 800-800-3302. "We should be putting the onus on employers to create structures that are equitable to begin with, and not putting the onus on applicants to make sure they're being paid fairly. A. Yes. As , If youre not a member of a protected class, can you still file an EEOC claim? 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. Basically, you do not have a right to reveal someone elses salary with others. Under the National Labor Relations Act (NLRA or the Act), employees have the right to communicate with other employees at their workplace about their wages. Applicants had less power, and employers could hold their cards close. Wages are a vital term and condition of employment, and discussions of wages are often preliminary to organizing or other actions for mutual aid or protection. I love to explore workplace and business-related issues to write on them. Have you been terminated? all employers, including State and local government employers, with 15 or more employees after July 26, 1994. providing or modifying equipment or devices. The National Labor Relations Board has found that we violated the National Labor Relations Act and has ordered us to post and abide by this notice. Can an employer lower my salary or pay me less than other employees doing the same job because I need a reasonable accommodation? There is a common misconception among employees that you cannot discuss your pay with others. We are proud to announce that for the ninth year, Jackson Spencer Law has been selected by Best Lawyers and , A manager at a Fuzzys Taco in Little Elm is accused of firing a bartender for refusing his sexual advances, , The former Director of Sales of an upscale assisted living facility in Southlake claims she was fired for refusing to , For the 14th consecutive year, Texas Super Lawyers has named Jennifer Spencer to its annual list of top attorneys. If you were fired from your previous job, your former employer is within their legal right to say so and share the details of your termination. And can help prevent potential lawsuits alleging discrimination. The clear message for employers: Say no to prohibiting workers from discussing pay and compensation. Here are some examples from the past three decades of NLRB decisions. You may also discuss supporting employees who work elsewhere. Can my employer disclose my salary to other companies? Jackson Spencer Law Recognized by Best Law Firms 2023, Lawsuit Alleges Fuzzys Taco Manager Fired Bartender for Refusing Sexual Advances, Lawsuit Alleges HarborChase of Southlake Fired Sales Director for Refusing to Participate in Illegal Price Fixing, Super Lawyers Selects Jennifer Spencer for 2022 Honors. Over the years, theyve ruled (and decisively) on the right of employees to discuss pay levels and compensation packages. EEOC field offices can refer you to the agencies that enforce those laws. If so, your salary information is public record and available to anyone who requests it. Employers are required to provide reasonable accommodation only for the physical or mental limitations of a qualified individual with a disability of which they are aware. GovDocs simplifies employment law compliance for large, multi-jurisdiction employers in the U.S. and Canada. Although salary information is generally considered private. For example, the NLRB issued a complaint against a diaper supply company in St. Louis that fired a worker after she discussed wages with another employee. However, employers should also maintain strict. LockA locked padlock Also, employees may be less likely to negotiate for higher salaries. A Division of NBC Universal, 10'000 Hours | DigitalVision | Getty Images, How this 25-year-old earns and spends $33,000 a year in Chicago. The law errs on the side of protecting employees right to concerted activity. And with good reason their salary is personal and private information. However, there are a few things to remember here: Are you a government employee? About 50% of American workers report that their employers prohibit or discourage discussions of wages and salaries. See, NLRB v. Brookshire Grocery Co., 919 F.2d 359 (5th Circuit, 1990). The employer had a handbook policy against discussing wages, but it was found to be unlawful by the NLRB. For example, lets say you have a co-worker, Bob. Does your client still insist on disclosing your salary information to other employees? But they could have a policy in place that prohibits such discussions. In January 1992, EEOC published a Technical Assistance Manual, providing practical application of legal requirements to specific employment activities, with a directory of resources to aid compliance. They may need to share salary information to ensure everyone is treated fairly. Mutual trust and the feeling of being valued can go a long way in heading off problems before they escalate. Suite 400 Can an employer disclose an employees salary to other employees? Employees may resent each other if they feel they are being paid less than their coworkers. You have these rights whether or not you are represented by a union. GovDocs, Inc. If salaries are public, it could lead to lower morale among employees. If your employer violates the NLRA, you may file a charge against them with the NLRB. Additionally, if your salary is a trade secret, like in the case of a celebrity, you may not get protected. The ADA makes it unlawful to discriminate in all employment. To be protected under the ADA, you must have, have a record of, or be regarded as having a substantial, as opposed to a minor, impairment. In general, non-disclosure agreements are lawful, but they cannot include any provisions that prohibit the discussion of pay. Their rationale is that the public has a right to know how their tax dollars are being spent. Employees can discuss their salaries without reprisal from their employer. This includes the Equal Employment Opportunity Commission (EEOC). If the cost of providing the needed accommodation would be an undue hardship, the employee must be given the choice of providing the accommodation or paying for the portion of the accommodation that causes the undue hardship. When using electronic communications, like social media, keep in mind that your employer may have policies against using their equipment. If salaries are public, it could create a hostile work environment. If the health insurance offered by my employer does not cover all of the medical expenses related to my disability, does the company have to obtain additional coverage for me? You will be notified when it is ready. Companies covered by the NLRAcannot limit employees concerted activities for the purpose of collective bargaining or other mutual aid or protection, according to Section 7 of the NLRA. Require employees to sign broad non-compete agreements. Employers must disclose the salary range when an employee moves into a new position. Section 1 (a): Company information. If making an existing facility accessible would be an undue hardship, the employer must provide a comparable facility that will enable a person with a disability to enjoy benefits and privileges of employment similar to those enjoyed by other employees, unless to do so would be an undue hardship. As of 2022, at least seven states and three cities have laws requiring pay transparency. Are you unknowingly infringing on employees legal rights? For an exhaustive list of major state regulations governing discrimination by employers, visit here . Washington, DC 20507 Colorado is unique in requiring that pay ranges be included in all job postings, and New York City will soon have a similar law. While employers may restrict workers from discussing their salary in front of customers or during work, they cannot prohibit employees from talking about pay on their own time. Workers in those institutions are subject to the policies of their respective employers and may be unable to discuss pay levels. Some employees may feel comfortable sharing their salaries with their coworkers. There are no federal laws that prevent what information your employer can or cannot disclose about former employees. There are a number of situations that call for releasing information about an employee's salary or other income, including the following: When asked to release salary information, employers should consider the context and confirm with the relevant employee that salary details are required to adequately address all areas of a verification request. In most cases, these departments will simply confirm your dates of employment and . Conversations can evoke feelings of jealousy and inequity among co-workers who most likely are unaware of the reasons for salary differences, including education, experience and training. Beginning October 2021, employers in Connecticut must provide the salary range if an applicant asks for it, or if the employer extends an offer whichever occurs first. An employer cannot make up the cost of providing a reasonable accommodation by lowering your salary or paying you less than other employees in similar positions. See examples of NLRB decisions below. In other words, the best way for employers to discourage workers from discussing salary is to have a compensation system that everyone knows and understands. (b) Require an employee to sign a waiver or other document that purports to deny the employee the right to disclose the amount of his or her wages. That is if they know their current salary is public information. Or if salary information is public information or if the employer needs to do so by law. If you are part of a union, there may be restrictions on what your employer can disclose about your salary. If an employer has several qualified applicants for a job, is the employer required to select a qualified applicant with a disability over other applicants without a disability? You cannot forbid employees either verbally or in written policy from discussing salaries or other job conditions among themselves. Salary discussions are protected and will trump any non-disclosure agreement (even if the other portions of the NDA are perfectly lawful). Q. The thought is that your company should pay workers based on your formal compensation strategy, not their pay history. This practice is more common in larger companies. Your employer may have a legitimate business reason for disclosing this information. Employees look for ways to be more open with their employees. Please refresh the page and try again, By clicking "Find a Lawyer", you agree to the Martindale-Nolo, Do Not Sell or Share My Personal Information, both face-to-face conversations and written messages, including via. This one is a little tricky. adjusting or modifying examinations, training materials, or policies. To bargain collectively through representatives of their own choice, To act together for other mutual aid or protection. Your salary is a confidential part of your job, and it's not something that you can share with others. However, sharing salary information can create tension among employees. making the workplace readily accessible to and usable by people with disabilities. Q. By Steve Milano Updated May 26, 2021. Q. I think I was discriminated against because my wife is disabled. You may have up to 300 days to file a charge if there is a State or local law that provides relief for discrimination on the basis of disability. In this case, employer cannot legally disclose your salary information to other employees. It is also unlawful for an employer to retaliate against you for asserting your rights under the ADA. All Rights Reserved. All-inclusive HCM service and technology to streamline your processes and procedures. With more than 90+ locations across the country, youll find a local team that knows the region, backed by the power of a national footprint. All rights reserved by The Balance Work, Is It Illegal To Discuss Your Salary With Coworkers_, Reposted Job After Interview 11 Scenarios, What To Do If I Hate Being A Manager 12 Solutions, How to Create a Non-Confrontational Environment? While you may not prohibit employees from discussing terms and conditions of employment (which includes salary), you don't have to encourage employees to share their compensation data.. An employee whose job function involves access to company wage and payroll information may not disclose employee pay information to other employees unless directed to by the employer or an investigating agency. With the guidance of your HR representatives and management, you should be able to handle whatever issue comes along. The ADA does not permit employers to disclose an employee's medical information to an employer's customers or vendors. An experienced employment lawyer can help you figure out whether your legal rights have been violated, and what you can do about it. 1305 Corporate Center Drive If you work in a state with a salary history ban, your employer may not be able to ask you about your previous salaries. Copyright 2023 GovDocs, Inc. GovDocs is a registered trademark of GovDocs, Inc. July 1, 2021, Minimum Wage Rates: California Cities, GovDocs Earns Best Places to Work Award, Maryland passed a host of new employment laws, Texas Instruments v. International Union of Electrical, Radio and Machine Workers, AFL-CIO. A charge of discrimination generally must be filed within 180 days of the alleged discrimination. If you have a disability, you must also be qualified to perform the essential functions or duties of a job, with or without reasonable accommodation, in order to be protected from job discrimination by the ADA. Even informal, unwritten policies or practices, such as when supervisors urge employees not to discuss pay, are illegal under the NLRA. Confidentiality Rules for Medical Information The biggest category of records that must be kept confidential is medical information. Employers must provide the pay range on a job after they've made an offer and if the applicant asks for it. For example, an employer may be required to provide a sign language interpreter during a job interview for an applicant who is deaf or hearing impaired, unless to do so would impose an undue hardship. If you are applying for a job, an employer cannot ask you if you are disabled or ask about the nature or severity of your disability. Q. I am very keen on reading and writing about work life. The EEOC requires employers to track and report employee compensation data. While the EEOC can only process ADA charges based on actions occurring on or after July 26, 1992, you may already be protected by State or local laws or by other current federal laws. For example, an employer may not deduct the cost of damage to a company car from an employee's wages. Government agencies disclose an employees salary information upon request. Accordingly, EEOC will encourage efforts of employers and individuals with disabilities to settle such differences through alternative methods of dispute resolution, providing that such efforts do not deprive any individual of legal rights provided by the statute. Currently, only 17 percent of U.S. companies explicitly allow employees to discuss their pay at workoutside of managers discussing compensation with employees privately or with each other to . "We need to think about how we bring them back in and rebuild the economy, and do it in a way that's sustainable for people and strengthens business.". 1-800-669-6820 (TTY) As a result, they may be unable to share their salary information with others. Employers must also notify current employees of all promotion opportunities and keep records of job descriptions and wages. document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 Insperity. info@eeoc.gov Some cities have passed similar laws, such as Toledo, Ohio, which does not allow employers to use this information to screen applicants, offer employment, or set salaries. You may also be entitled to attorneys fees. A. If women know what their male counterparts earn, they can negotiate for better pay. A. In October 2019, for example, Maryland passed a host of new employment laws, with a salary history ban part of the sweeping amendments. If your employer does any of these things, a charge may be filed against the employer with the NLRB.