BPHR’s Director Lisa Salcido, SPHR, SHRM-SCP provides answers to your pressing HR questions.
Question: One of our managers overheard a few employees comparing pay rates. We would like prohibit our staff from discussing their wages with each other. Should we create a policy for the handbook?
Answer: I understand your preference for wanting to keep individual pay rates confidential but you cannot forbid your employees from discussing their compensation. Creating this policy would be unlawful as it interferes with employee rights. Section 7 of the National Labor Relations Act (NLRA) states that employees have a right to join together in an effort to improve their pay, benefits and working conditions.
The National Labor Relations Board (NLRB) considers salary discussion a “protected concerted activity.” These discussions are protected whether they occur in or out of the office or through written or electronic communication.
Of course, employees disclosing their pay rates can have a negative impact on morale. To minimize jealousy and claims of pay inequality, be sure compensation in your company is fair, justifiable and in line with education, experience and the marketplace.
Take a More Balanced Approach to HR with BPHR
Adhering to labor laws can be tricky. Sometimes what’s lawful isn’t what seems logical. If you have concerns, we have you covered. Our goal is to free you of the worry, so you can focus on the bigger picture. Schedule your free phone consultation today to learn how your organization can benefit from BPHR.
Have a question for Lisa? Email her directly.
DISCLAIMER: The material presented on this page is for informational purposes only and does not constitute legal advice or legal opinion.