A reader sent us this question: How many businesses have a policy like the one below?
Employees are prohibited from discussing their salary or wage levels and company benefits with other employees. Such information is confidential and may not be discussed in the workplace. Any employee violating this policy will be considered to have committed a breach of confidentiality and will be subject to disciplinary action, up to and possibly including termination of employment.
While we don’t know the specific percentage of businesses that have a policy similar to this, it must be a fairly large number, since the question arises repeatedly.
The short answer: California Labor Code §230 expressly prohibit such a policy, which says that employers may not:
- Prohibit an employee from disclosing the amount of his/her wages, or discipline an employee who does so
- Require any employee to sign a waiver of that provision
The following Labor Code §230.5 Labor Code §232.5 continues the litany by prohibiting an employer from:
- Requiring that an employee refrain from disclosing his/her working conditions
- Requiring an employee to sign a waiver of that right
- Discipline or discharge an employee who violated either of these two preceding provisions
That’s only a very small portion of the incredibly huge, often confusing laws and regulations.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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