Hiring new workers can be a complicated process. Businesses have to balance the desire for the best talent available with the need to control operating costs. Employers want to bring in people who are excited about the company and their position within the organization.
They want to maintain that positive report so that the worker feels motivated to do their job to the best of their ability. Few things damage an employee’s work ethic and overall morale faster than the realization that their co-workers make substantially more than they do for the same job responsibilities.
Some organizations include rules in their employee handbooks or training materials that prohibit workers from discussing their wages to avoid such scenarios. They may also hope to prevent allegations of unfair pay practices. Are such policies enforceable?
Employees have a protected right to organize
Federal law and state statutes protect numerous worker rights. The right to organize, possibly by starting a union, is a key federal labor protection. One of the first steps toward organizing as employees is to evaluate the work environment.
Workers may discuss job safety and expectations. They are also likely to compare wages and benefits. While employers can include rules intended to deter workers from discussing their wages in training materials, actually enforcing those rules is all but impossible.
Companies cannot retaliate against workers for engaging in protected activities. For organizations operating in California, new wage transparency laws apply. Workers have a right to see a range of salaries for their positions. The goal of such regulations is to limit wage discrepancies based on protected characteristics, such as race and sex.
Any business with at least 15 employees must include information about the range of potential wages offered when listing a vacant position. They also have an obligation to provide wage ranges for current employees if they make a request. If the company has at least 100 workers, it must send data to the California Civil Rights Department.
Employers may find themselves in a difficult position when workers start questioning pay practices. Understanding what the law allows can help employers avoid potentially costly regulatory violations when responding to employee conduct. Employers may need help updating their handbooks and training materials to reflect changing state laws and addressing issues with staff members that could affect morale, and that’s okay.