How Companies Can Avoid Violating the National Labor Relations Act as to wage discussions

The National Labor Relations Act (NLRA) is a critical piece of labor legislation in the United States, designed to protect the rights of employees and ensure fair labor practices. One area where companies often find themselves in legal hot water is when discussing wages with their employees. There are things companies need to do to avoid violating the NLRA when it comes to discussing wages.

Understanding the NLRA

Before we delve into the dos and don’ts, let’s have a brief understanding of the NLRA. Enacted in 1935, the NLRA, also known as the Wagner Act, aims to protect employees’ rights to engage in collective bargaining and union activities. It sets forth rules for employers and employees, ensuring that both parties can engage in fair labor practices without undue interference.

Key Provisions Related to Wage Discussions

When it comes to discussing wages, there are a few key provisions of the NLRA that employers should be aware of:

• Section 7 Rights: Section 7 of the NLRA grants employees the right to engage in “concerted activities” for their mutual aid and protection. This includes discussing wages, hours, and working conditions with colleagues, whether or not they are part of a labor union.
• Anti-Retaliation: The NLRA prohibits employers from retaliating against employees who exercise their rights under Section 7. This means that companies cannot take adverse actions, such as firing or disciplining employees, for discussing wages.
• Confidentiality Policies: Employers should be cautious when implementing confidentiality policies that restrict employees from discussing their wages. Such policies may be deemed unlawful if they unduly limit employees’ Section 7 rights.

These sections apply to all states, including right to work states, including the state of Utah. They also typically apply to all private companies. Even if the company does not have a union or a state does not foster unions as other states does, employees are still allowed to discuss wages under this act.

Dos and Don’ts for Companies

Now, let’s look at what companies need to do to ensure compliance with the NLRA when discussing wages:

Dos:

• Educate Managers and Supervisors: Ensure that your managers and supervisors are well-informed about the NLRA and its provisions. Training them on how to handle wage discussions is crucial.
• Review and Revise Policies: Regularly review your company policies, especially those related to confidentiality and employee conduct, to ensure they align with NLRA requirements. A complete bar to discussions on wages would violate this act. Make necessary revisions to avoid any potential violations.
• Encourage Open Communication: Create a workplace culture that encourages open communication about wages, hours, and working conditions. When employees feel free to discuss these topics, they are less likely to feel their rights are being violated.
• Seek Legal Counsel: If you are uncertain about the legality of your policies or actions, consult with legal counsel specializing in labor and employment law. They can provide guidance and ensure your company stays within the bounds of the law.

Don’ts:

• Retaliate Against Employees: Avoid any form of retaliation against employees who engage in wage discussions. Retaliation can lead to legal troubles and damage your company’s reputation. Retaliation includes but is not limited to terminating an employee for discussing wages, lower their hours, demotion, change in job duties or description.
• Implement Broad Confidentiality Policies: Be cautious when implementing broad confidentiality policies that restrict employees from discussing their wages. Ensure that such policies do not infringe upon employees’ Section 7 rights. There are some exceptions to this but it is typically good to discuss with legal counsel as to the exceptions. A company should not have broad policy or provisions in offer letters or employment contracts that says an employee cannot discuss wages. It also should not foster its employers and managers from keeping other employees from discussing wages.
• Interfere with Union Activities: If your employees are engaged in union activities, be extremely careful not to interfere with their rights. Violating union-related provisions of the NLRA can lead to severe consequences. A policy that says employees cannot discuss wages, could be read as a company violating an interfering with an employee and his or her right to unionize.

Violation of the NLRA as it relates to discussing wages

If an employee thinks there is a potential violation of the National Labor Relations Act as it relates to discussing wages, they can file a complaint with the NLRA board. The NLRA will conduct an investigation. If any violations are found, they may enter a cease and desist order against the company from continuing actions that violate the NLRA. An employee may also recover damages such as lost pay or any other damages incurred related to a violation of the act if any kind of retaliation occurred.

Discussing wages within your company should be done with a clear understanding of the NLRA’s provisions. There should not be a complete bar toward employees on their inability to discuss wages. By educating your workforce, revising policies, and fostering a culture of open communication, you can ensure that your company complies with the law while promoting a fair and transparent work environment.

Remember, seeking legal counsel when in doubt is always a wise choice to avoid potential violations of the National Labor Relations Act. Ultimately, respecting your employees’ rights benefits not only your workforce but also your company’s long-term success and reputation.

Reach out to our employment law firm today on how we can assist you with your legal questions as it relates to labor rights.