Is it legal for employers to not allow employees to discuss compensation.

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Is it legal for employers to not allow employees to discuss compensation.

I started a new job and feel hesitant to sign
the employee handbook because of a passage that
says ‘ all compensation is confidential.
Employees may not discuss compensation levels
and/or actual dollar amounts of compensation
with their co-workers. Employees who violate
this policy may be subject to disciplinary
action, including termination’

Asked on February 12, 2019 under Employment Labor Law, Wisconsin

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

As a general rule, an employer can not prohibit its employeess from discussing their compensation with their co-workers under the the NLRB (National Labor Relations Board). Companies not covered by the NLRA, but that are federal contractors, must follow a similar standard. Exceptions to the foregoing are those whose job functions involve access to company wage and payroll information unless otherwise directed by their employer or an investigating agency. Employers not covered by the NLRA or the federal contractor exception, include municipal governments and religious schools. Workers in those institutions are subject to their employer's policies. If you are still unclear as toyour rights/remedies, you should consult directly with an employment law attorney and/or your state's department of labor.

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

As a general rule, an employer can not prohibit its employeess from discussing their compensation with their co-workers under the the NLRB (National Labor Relations Board). Companies not covered by the NLRA, but that are federal contractors, must follow a similar standard. Exceptions to the foregoing are those whose job functions involve access to company wage and payroll information unless otherwise directed by their employer or an investigating agency. Employers not covered by the NLRA or the federal contractor exception, include municipal governments and religious schools. Workers in those institutions are subject to their employer's policies. If you are still unclear as toyour rights/remedies, you should consult directly with an employment law attorney and/or your state's department of labor.


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