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Pay transparency continues to gain traction nationwide and aims to reduce gender/racial pay gaps and promote fairness in the workplace. Much of these changes surrounding pay transparency are driven by pay equity initiatives and increased enforcement activity by the National Labor Relations Board ("NLRB"). While Pennsylvania has not yet enacted a comprehensive wage transparency statute, employers must still navigate and comply with applicable federal law.
Under Section 7 of the National Labor Relations Act, employees—unionized or not—have the protected right to discuss wages, benefits, and other terms and conditions of employment with coworkers. The NLRB has consistently held that employer policies, agreements and disciplinary actions prohibiting or discouraging such discussions are unlawful.
Common problem areas include:
- Confidentiality rules that encompass compensation information;
- Social media or conduct policies that restrict discussion of pay; and
- Policies requiring employees to raise compensation concerns only through management.
Violations can result in rescission of policies, mandatory postings, and, in some cases, reinstatement and back pay. These federal protections apply regardless of whether a state has enacted pay transparency legislation.
Pennsylvania currently does not have any comprehensive statute related to pay transparency. But, even in the absence of a Pennsylvania statute, employers are still subject to federal protections afforded to employees regarding pay discussions. Employers operating in multiple jurisdictions should include this in their state-by-state compliance review. Keeping that in mind, employers should: (1) review handbooks and policies to ensure they do not restrict protected wage discussions, and (2) train managers not to discourage or retaliate against employees for discussing pay. Policy review and training remain the best tools for minimizing exposure as pay transparency continues to evolve.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
