Employees’ right to discuss compensation is a complex issue, often governed by a combination of federal, state, and local laws, as well as company policies. Generally, the National Labor Relations Act (NLRA) protects the rights of most private sector employees to engage in “concerted activities” for mutual aid or protection, including discussions about wages, benefits, and working conditions. This protection typically applies even if employees are not unionized.
Open conversations about compensation are crucial for pay transparency and equity. They can empower employees to identify and address potential pay disparities based on factors like gender, race, or age. Historically, restrictions on these discussions allowed discriminatory pay practices to persist. Promoting transparency fosters a fairer and more equitable workplace environment, boosting employee morale and trust. Moreover, transparency can benefit employers by reducing the risk of legal challenges and improving overall workplace culture.