Discussing Pay Issues

We are a non-union Company and as many other companies across the world, having problems with employees discussing pay rates amongst themselves. Of course, this creates a tremendous amount of animosity amongst employees and supervisors.

Are you aware on any regulations or restrictions placed on privately-owned corporations that would prohibit a policy disallowing such discussions amongst employees?

Do any of you currently enforce such policies and if so, can you offer suggestions?

Comments

  • 27 Comments sorted by Votes Date Added
  • Even though you are non-union, discussion of pay between co-workers can be considered "concerted activity" which is protected under the National Labor Relations Act. If you discipline an employee for violating a policy restricting discussion of these matters, you could be subject to an unfair labor practice claim - although it may be unlikely depending on the nature of your workforce.

    You can always discipline employees if their discussion is disruptive to actual work or in an inappropiate manner.


    Al Vreeland
    Editor, Alabama Employment Law Letter
    Lehr Middlebrooks Price & Vreeland, P.C.

  • Thank you. Any suggestions?
  • [font size="1" color="#FF0000"]LAST EDITED ON 03-16-07 AT 11:19AM (CST)[/font][br][br]Even non-union companies must abide by the provisions in the NLRA that allow ee's to engage in "concerted activities for the purpose of collective bargaining and for other mutual aid or protection". Frustrating, but that gives the ee's the right to discuss wages. You can't legally prohibit them from doing so. Now what I have done is if someone lies about their rate of pay and it causes disruption, I will address that. I will also tell ee's that though they have the right to discuss their wages, it might not be wise to do so if creates dissention among themselves. If they create a problem, then they have to live with it, "don't come running to me when people treat you poorly because they are jealous". Advise them on the ramifications of their actions, but you can't stop it.

    Edit: Oops, Al Vreeland's post above appeared after I hit the send button.

  • Thank you for all the comments and information. All will be more then beneficial in a plight to keep this from becoming a written policy.

    Are you aware of specific regulations that can be used as verification of the legal ramification involved with such disciplinary actions?
  • Just print this thread from the Forum. Our word should be good enough for your boss. ;)
  • Thanks for the chuckle and will do!
  • Actually, the NLRB website is fantastic. You can find a lot of "documentation" on there. Here's a link to a specific page where it says quite clearly that you shouldn't prohibit pay discussion:

    [url]http://www.nlrb.gov/workplace_rights/i_am_new_to_this_website/what_are_protected_concerted_activities.aspx[/url]
  • All of the above being said and understood, I have maintained this "NO Discussion of wages" as a disruptive communication ingredient in all of the companies in which I have served. Over many years of HR experience in private companies, I have not be challenged one time. Additionally, the matter has not been a element of contention. We know they do it, but I know we can not fire anyone over the discussions unless it causes a major hinderance to production. We have steadily climbed to grettier levels of success in our production and the employees have been reaping the benefit of staying busy and keeping the ship going without disruptions. Our employees know the rate ranges and what to shoot for. The glass ceiling has been busted for all concerned and those with the "get go" have risen to the top and they really are not interested in what we are paying anyone. They are interested in what we pay the concerned individual.

    In the military income is a posted item and everyone knows what one is being paid if one knows the rank and time in service, the published charts provide the income information. I highly encourage the private working world to get on board with that concept. It works. No, I have not been able to get the companies in which I have been employed after retiring from the military to publish this information and be done with it as a issue!

    Pork also known as Richard
  • Anyone who asks me what another job pays gets the range immediately. Trying to keep pay rates secret implies that you're hiding inequities.
  • What you CAN do, however, is have a policy to prevent people with access to confidential information (e.g. HR, payroll, accounting) from discussing OTHER people's salaries ... the NLRB ruling prohibits the employer from disciplining employees from discussing their OWN salaries ...
  • We have disciplined employees for disrupting others' work with their complaining/pot stirring. We address it as an employee complaint. (That's usually how we become aware of the problem.)

    For example:
    ray a and Paul are coworkers.
    marc is the supervisor.

    Ray a complains to marc that Paul is constantly complaining about pay, hours, etc. and he wants Paul to knock it off.

    In the disciplinary document, marc acknowledges Paul's concerns and notes that another employee who shall remain nameless has asked him to make Paul stop. marc notes that all concerns must be brought to a supervisor's attention so they can be addressed.

    marc does not tell Paul he CAN'T complain to his coworkers, marc just tells him how his actions were perceived, and also what he must do if he wants his own issues resolved.

    marc reminds Paul of the Employee Grievance section of the handbook were it advises employees to bring all concerns to a supervisor to they may be addressed.


  • It has been my experience that pay rates or ranges should be known to employees. In unionized environments everyone knows what everyone makes, so there is no secrecy. We have done this in nonunion plants to avoid that claim from organizers.
    The only time I've had the problem is with performance bonuses being communicated between exempt employees. But with an effective appraisal system these discussions are actually minimized.

  • I agree that regardless of whether or not there's a policy, people WILL discuss pay. They just DO.

    Often, they don't realize the damage they are doing or how negatively others see them when they stir the pot. OK, sometimes they know exactly what they are doing, and when coaching them in the right direction doesn't work, a hand slap for being disruptive, regardless of the topic they are discussing, sometimes needs to happen.
  • I agree they often don't realize the damage they do. Sometimes ee's are just excited over getting a decent raise and they feel they must share their joy. Well, the other person doesn't quite receive the same level of joy from the news. I've come across many instances of people talking about pay seemingly innocently and are surprised when others get upset. Those situations are much easier for counselling.
  • Most cases I come across are more like this: Paul is mad because he only got a 2% raise, and he asks Ray how much he got, thinking everybody's raise was lower than usual. Ray says 4% because he figures that's what everyone gets. Now Paul is mad, and stomps around asking everyone what their raise was, and is mad to find out he's the ONLY one who only got 2%. Nevermind that his performance was lackluster in the past 12 months and everyone else was average to good.

    Oddly, it still doesn't occur to Paul that his stomping around is bringing everyone else down. He thinks he's the only one who's miserable. Now Marc has to talk to him about it, without violating any employee rights laws.

  • I love it when that happens. Paul is a butt, and whereas I may have been the only one who recognized it before, everyone can see it now. He may even get mad and quit so I can upgrade. The other employees can also make the mental connection... be a non-performing butt, and get a lower raise.
  • Let's see... 4% of nothin' would be...
  • Notice how marc is avoiding this post. He has confrontation issues.
  • >Notice how marc is avoiding this post. He has
    >confrontation issues.



    Would YOU want to confront a grown man whose idea of casual day involves spandex tights, oversized glitter-glasses and a feather boa?
  • Yes, actually, and I'd have a great time with it.

    We employed quite a few openly and flamboyantly gay men in my "past life" and although I occasionally had to tell some of them to tone it down, we had a good time. It all depends on your outlook, Frank. x;-)
  • Nah, I really got a 6% raise, but didn't want to hurt HRQ's feelings.
  • You deserve every penny!

    Blessings.
  • The experience I have with this is timing. When does eveyone think that a newly hired no experience ee who does a great job and meets or exceeds performance levels of a person that has been there on the job for 5 years get the same or near same pay? If the person is performing the same job and after one year is as capable as the long employedd ee doesn't he deserve the pay? How does anyone factor in tenure with the company?
    Elizabeth
  • You guys (and whoever it was before that was talking about "confidential company information") might want to check out the decision handed down by the Court of Appeals for the DC Circuit yesterday that upheld the NLRB's ruling that a general confidentiality provision constituted an unfair labor practice, because it was possible that an employee could reasonably interpret the provision to apply to the discussion of wages. The confidentiality provision was:

    "We honor confidentiality. We recognize and protect the confidentiality of any information concerning the company, its business plans, its partners, new business efforts, customers, accounting and financial matters."

    Even though there was no evidence that the company had ever disciplined any employee for discussing wages, nor was there evidence that any employee actually had interpreted the policy to prohibit the discussion of wages, the NLRB and Court of Appeals found that the policy constituted an unfair labor practice because an employee could reasonably interpret language prohibiting the release of “any information concerning the company,…its partners,…accounting and financial matters” to prohibit the discussion of information concerning wages.

    It's possible that employees could interpret a reprimand (or mere "talking-to") for "bringing everyone else down" as a reprimand for discussing wages (which I think is kinda what it is, no matter how you dress it up). I mean that's the whole point: concerted activity is protected, even if it causes a certain amount of "disruption" (which sometimes is a euphemism for 'unionization'). Obviously if it's actually disrupting work performance or otherwise done inappropriately, that's one thing, but if it's more an issue of morale, resentment, jealousy, I think it would be risky to discipline for discussing wages under the guise of that kind of "disruption." The morale, resentment, jealousy issues, etc. are part of what's at issue in union activity protection - by prohibiting people from introducing those issues to the workplace with their gripes (or praises) about their pay, you could be affecting people's rights to work together to improve their working conditions. It's a fine line, for sure.


  • I agree, that is why I merely advise ee's of the ramifications of discussing wages. I tell them they have every legal right to do so and we will not stop them, but then if others get upset with them they must live with the consequences and I will be unable to help them. Their choice.
  • I agree it's a fine line. We rarely write up for this, but in the most recent case, an employee resigned without notice because the other employee was "harassing" her about the work environment. We asked her for the opportunity to make it stop, we didn't want her to quit over this.

    The quitting employee ended up staying, the other employee said she didn't know she was upsetting anyone.

    The problem stopped.
Sign In or Register to comment.