Ever wonder how your salary compares to your peers? Did you negotiate the right amount during the interview process? Is there a gender or race disparity when it comes to how people are compensated? These are some of the questions you may find yourself asking when you have been in your position for quite some time.
- Can I legally discuss wages with co-workers?
In the United States, the right to discuss wages is governed by the National Labor Relations Act (NLRA). The Act was enacted in 1935 and was part of President Franklin Roosevelt’s New Deal. The NLRA is primarily known as the law that enshrined the right for employees to form unions. It created an administrative agency, the National Labor Relations Board (NLRB) to provide rules and regulations relating to both union and non-union employment.
The NLRA also protects the right to discuss wages at many but not all employers. Because the NLRA is a federal law, it covers employers who are large enough to impact “interstate commerce.” Whether an employer is big enough to be covered by the NLRA depends in part on the industry in which it operates. The NLRB’s website describes the size of companies that are governed by its rules. For example, the NLRA’s right to discuss wages applies to retail companies that have $500,000 or more in gross annual sales. For non-retailers, the right to discuss wages applies to employers that have at least $50,000 in interstate sales. There are also industry specific limits, such as the $200,000 in annual revenues for a law firm. And there are certain jobs, such as those working at religious schools that may not be covered by the Act. The law also does not apply to supervisors or to independent contractors.
Most employees are covered by the NLRA. And those that are not might be covered by a state law. California and New York have passed laws that also protect your right to discuss wages with co-workers. You should check out your specific situation, but for the most part, the chances are good that you can legally discuss pay with co-workers.
You have these rights whether or not you are represented by a union. You also have the right to not engage in these conversations if you do not feel comfortable openly discussing your pay with others.
- The benefits of discussing wages
Knowledge is power. That is the primary reason to find out how you are paid in comparison to your co-workers.
Talking about your salary may prove beneficial to you. It lets you know whether or not you are getting fairly compensated for the quality of work you bring. Why is someone in a lower or similar position to you getting paid more? Do you perform the same tasks as them? Have they been with the company longer and have more experience? The answers to these questions may inform your decision to ask for a raise and otherwise evaluate your compensation.
The best way to raise this topic with a co-worker is to emphasize that you are doing this for their mutual benefit. It helps them become more informed. This isn’t you just being nosy.
- What are the drawbacks?
Just because you have the right to ask a question doesn’t mean that you will be happy with the answers you receive. When you ask about compensation, you may discover uncomfortable truths, such as your employer thinks more highly of your co-workers or that you are paid less because you asked for less during the interview process.
Moreover, just because you are paid less doesn’t mean that the employer has broken the law or that they will raise your pay if you ask for a raise. If you do ask for money based in part on finding out what others make, you are generally better off not mentioning other people’s pay. It is often more effective just to make the best case for a raise without making a direct comparison.
You also should assess the risk that your employer will take adverse action against you, even if it is against the law to do. Under the NLSA and the Equal Pay Act in some states, it is unlawful for your employer to punish or retaliate against you for having that conversation. It is also unlawful for your employer to interrogate, threaten, or put you under surveillance for talking to other workers about their pay. It is also unlawful for employers to have a policy or hiring agreement that prohibits employees from discussing their wages with each other or that requires you to get the employer’s permission to have such discussions.
These legal protections are important. But they don’t prevent the employer from firing you or taking some other adverse action, such as giving you worse assignments. You do have the right to file a complaint with the NLRB and a lawyer may be willing to file a lawsuit against your employer. If you do feel that your employer may just violate the law, first talk to a lawyer who is experienced in representing employees in disputes with their employers.
Conclusion
Overall, too few employees take advantage of their right to discuss wages with co-workers. Unless you fall into one of the exemptions to coverage provided by the NLRA, you likely have the legal right to discuss wages. And so long as you are prepared to hear unpleasant information, you are better off finding out that you are paid less than working under an illusion about how your employer views you. You too have the right to evaluate your employer and seek to work elsewhere if you think that is in your best interest.
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