Talking about money can be difficult and uncomfortable for many people. For working people, however, discussing pay and benefits can be essential to ensure they are not being shortchanged on the job.
That is why federal law protects employees’ rights to discuss pay and related issues with their co-workers. California and Washington are among several states that have also passed laws to bolster these rights.
Sadly, some employers simply disregard the laws. Pay secrecy policies – banning employers from discussing their pay with co-workers – remain common, even though they are unlawful. Many employees mistakenly believe their employers can enforce these bans. That makes it much harder for them to know whether they are being paid less than others for the same work.
At Justice Law Corporation, our California wage and hour attorneys help people ensure that they are fully paid for their work. We are seasoned lawyers who have dedicated our careers to fighting for working people in California and Washington. Our lawyers have a strong track record of success for the people that we represent.
It is essential to understand that pay secrecy policies are illegal. In many situations, employers use pay secrecy policies to mask discrimination or other wage-and-hour violations. An experienced employment lawyer can help you challenge a pay secrecy policy and then gather information to determine whether your employer has been violating your rights through deceptive pay practices.
Why Employers Push Pay Secrecy Policies
Businesses and other employers have wide latitude to decide who they hire for which jobs and how much those people are paid. As long as employers are not discriminating or retaliating against certain workers and are otherwise complying with basic wage and hour laws, they can make these decisions as they see fit.
There are several reasons employers may not want employees discussing their pay. Many employers make legitimate pay decisions based on workers’ experience, abilities, and contributions on the job. When workers in the same group know what everyone makes, it can cause animosity and sew derision among the ranks.
Sometimes, however, employers keep a tight lid on pay discussions to shield themselves from liability for widespread pay violations, such as forcing employees to work off the clock, skimping on overtime pay, or underpaying certain workers for discriminatory reasons.
There are several benefits to allowing workers to discuss salaries, if they choose to do so. This kind of transparency is a check against discrimination on the job. Specifically, it can help employees determine whether they are being underpaid compared to coworkers and determine if there are legitimate reasons for the disparity. If not, the person may have a discrimination claim.
State laws banning pay secrecy policies popped up across the country following decades’ worth of examples of people being underpaid simply because of their gender, race, nationality, disability, or religion. Many of those workers did not learn about the pay disparities until years later because their employers strictly enforced pay secrecy policies.
Pay Secrecy Policies Are Unlawful in California and Washington
Federal law generally gives working people the right to discuss pay and other terms and conditions of their jobs. This is widely considered the kind of “concerted activity” that is protected under the National Labor Relations Act.
These kinds of discussions can come in many different ways, including:
- In-person
- By phone or text
- Through social media
- Outside of work
- During rest or meal breaks
Although the NLRA also enshrines workers’ rights to join unions, you do not need to be in a unionized workplace to be protected by the law.
In addition, workers in California and Washington have some of the strongest legal rights on the job in the country. That includes the right to discuss pay and other terms of their employment with co-workers.
In California, a pair of laws effectively ban pay secrecy policies: California Labor Code Section 232 and the California Fair Pay Act together. In Washington, the state’s Equal Pay and Opportunities Act similarly prohibits the policies.
The laws generally give employees the right to:
- Discuss or inquire about their own wages or the wages of other employees; and
- Help or encourage co-workers to inquire about wages
The laws also generally ban employers from:
- Requiring employees to refrain from disclosing the amount of their wages; and
- Force employees to sign waivers or other documents requiring them to stay silent about wages
Importantly, the laws also protect workers from retaliation for exercising their rights. Employers cannot fire, demote, discipline, or otherwise take action against employees for discussing wages. They also cannot interrogate you about the discussions or threaten to take punitive action if they continue.
How to Fight Back Against Pay Secrecy Policies
Employees whose employers continue to impose pay secrecy policies, whether written, verbal, or strongly implied, have several options for enforcing their rights.
Workers in California and Washington can file claims with state and federal agencies to request investigations. Employees can also file lawsuits against their employers, challenging policies and seeking court orders that strike them down. Those who have been retaliated against for discussing wages can also sue for remedies such as reinstatement to their jobs and unpaid wages.
Groups of workers can also join together in class actions. These lawsuits accuse employers of violating the rights of groups of workers and seek legal remedies for all who have been financially injured as a result. Employment class actions help workers level the playing field with large corporations by allowing them to pursue claims in a single case.
Our California Wage and Hour Attorneys Can Help
If you believe that your employer is violating your rights on the job, whether it is by being underpaid or in other terms and conditions, you do not need to go it alone. A California wage and hour attorney at Justice Law Corporation can help you evaluate your claim and understand your rights and options.
Our office is conveniently located in Pasadena. Contact us at (818) 230-7502 to schedule a free consultation with a California wage and hour attorney.
