Here’s How To Avoid Pay Secrecy Violations

avoiding pay secrecy violationsThe “war” on wage gaps is raging and for good reason: Large wage gaps have historically existed in the United States based on gender and race, specifically when it comes to women and minorities. According to research conducted by the Pew Research Center, black men have earned 73 percent of white men’s hourly earnings since 1980, while Hispanic men’s earnings increased from 69 percent to 71 percent of white men’s earnings since 1980. Moreover, women — regardless of their ethnicity or race — have historically lagged behind men, whether in their own race or not. Today, women across the nation still make 76 cents for every $1 men earn.

As a result of statistics like these, pay secrecy has become a significant issue with serious ramifications for violations. That’s why it’s vital to practice effective methods of training management and staff on maintaining professional behavior with regard to keeping pay information confidential, while still abiding by the requirements of the NLRA. Here’s how:

1. Put It in Writing

Before communicating what your pay secrecy policies are, make sure you have it in writing. It’s vital to give your management team and staff something solid and concrete to reference should there be any questions. Additionally, ensure that your content is up-to-date. By having clear rules written and current, staff and management can have a better understanding of the company’s stance on pay secrecy and how to act accordingly so that information is kept in a professional manner.

2. Communicate the Law

It’s vital that management and staff understand the law to avoid any pay secrecy violations. The National Labor Relations Act (NLRA) of 1935 protects employees against pay secrecy and penalizes businesses that violate the law. While it may not cost much to violate the NLRA, a violation (and a history of it) can potentially push employees into organizing into a union and take up union card signing. Union avoidance is possible by communicating the appropriate behavior to have regarding pay secrecy and what the law covers.

Employees have the right to talk about what matters to them at work, including compensation, under the NLRA. Therefore, shunning employees for discussing pay is not acceptable. Incorporating a pay policy that penalizes your employees for discussing pay at work is a violation of the NLRA, even if they sign a nondisclosure agreement.

employee engagement
3. Listen First

Educate your staff that acting irrationally, such as terminating an employee, without getting the facts or going through a defined disciplinary process, especially based on pay secrecy, is not the appropriate behavior. It’s important that they listen to what the situation is first. Businesses can be forced to give employees that were wrongfully terminated the option to get their jobs back, and they also may be required to give them back pay for the entire time they were without the job under the NLRA. Therefore, it’s significant that your staff and managers understand the ramifications of violating the NLRA and what constitutes a violation. Certain states also have their own laws pertaining to pay secrecy, including Colorado, Maine and California, so it’s important to clarify state and local laws regarding pay secrecy as well.

Final Thoughts

Training your staff and management team to avoid pay secrecy involves communicating the correct information and having a plan in place. By taking these steps, you can be proactive and prevent your employees from being pushed away into union organizing.

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