Employers generally want to minimize their staffing costs, which often means trying to limit what they pay their employees. Sometimes, companies may pay different employees who hold similar positions within the company different amounts.
The discrepancy in pay may come down to a difference in negotiating styles during annual reviews or certain workers agreeing to accept lower wages during the hiring process. Workers who learn that they make less than their coworkers might then negotiate for pay raises or seek employment elsewhere.
Wage discussions are also commonly part of the process that occurs before organizing to join or form a union. Employers may want to limit employee discussions about wages to avoid resentment and potential complications with certain workers. Can employers enforce policies prohibiting wage discussions by firing employees?
Discussing wages is a protected activity
Companies often warn employees that they cannot discuss their pay with one another or discuss the details of their employment with outside parties. Although employers may want to limit wage discussions, the most they can realistically do is discourage those conversations.
Even if the company has a formal policy or provides training advising workers not to discuss their pay, doing so is a protected right. The right to discuss compensation is critical to the ability of workers to organize. Employers cannot retaliate against workers who discuss their wages or otherwise assert their employment rights.
Professionals who lose their jobs because they’ve discussed their pay may be able to claim that they experienced unlawful retaliation. Reviewing their situation with a wrongful termination lawyer could help workers understand if they have experienced a violation of their rights.