Employees Discussing Salaries: Can You Legally Prevent it?

Oct 19, 2015

employees discussing salariesGenerally speaking, employers may not like the idea of their employees discussing salaries with one another. It could lead to some employees feeling they aren’t being paid fairly, or cause resentment if they feel other employees are being overcompensated. Therefore an employer might have the idea of creating a Non-Disclosure Agreement (NDA) for employees to sign regarding discussion of their salaries. Can this be done legally?

No, this cannot be done legally. Under Section 7 of the National Labor Relations Act (NLRA), employees have the right to discuss the terms and conditions of their employment, including their work hours, work conditions, pay, and managers.

The National Labor Relations Board has taken an aggressive approach to this issue, suing employers over the last few years for infringing upon these rights, so you’ll want to avoid putting any language conflicting with the NLRA into company documents. Besides, NDAs are more appropriately used for proprietary and trade secret company information, not for keeping employee salaries confidential.

The best defense against employees discussing or griping about their salaries is to have a working environment where everyone feels valued and that they are treated fairly.

For more information on keeping your business compliant with employment laws and other HR issues, contact us at (518) 373-4111.

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