Can companies fire workers for discussing their pay?

Businesses often impose numerous restrictions on their workers. Some people have to sign non-compete agreements that prevent them from starting their own companies for years after quitting a job. Many others impose rules regarding personal appearance and even social media use while working for the company.

Sometimes, the demands that companies make on their employees are not actually appropriate or even lawful. Businesses that do not want workers to learn about major discrepancies in what different employees make may establish rules prohibiting workers from discussing their wages and benefits.

Some workers may ignore those rules, only to face discipline, possibly including termination from their positions. Is it lawful for companies to punish workers for discussing their pay?

Wage disclosure is a protected act

Federal law establishes certain baseline rights for working professionals. There are certain types of conduct, called protected activities, that should not impact a professional’s employment or future opportunities.

When employees engage in protected workplace activities, companies cannot punish them for doing so. If a company fires, demotes or transfers an employee after they perform protected actions, the worker may have experienced illegal workplace retaliation.

There are numerous different types of protected activities, including reporting sexual harassment and asking for medical accommodations. Organizing or unionizing with coworkers is also a protected activity. That process generally requires that workers discuss their employment with one another.

As such, the law protects the right of workers to discuss their wages with one another. Otherwise, it would be all but impossible for them to identify trends, such as employers paying workers of a certain sex or race less than others. Workers who disclose their wages or ask co-workers about what they earn should not face discipline for their actions.

Companies may try to justify terminating a worker for discussing their wages by pointing to company policy. However, a company’s employment rules do not supersede federal statutes. Workers should not face retaliation for discussing their wages with one another.

When employees experience a significant violation of their employment rights, they may need to take legal action in response. Filing a lawsuit because of an employer’s retaliation may allow those harmed by inappropriate business practices to hold their employers accountable and reduce the direct harm they experience.