Discussion of Wages

This law is not intended to permit employees to disclose your proprietary information, trade secret information or other legally protected information without your consent.

In Grant-Burton v. Covenant Care, Inc., a California court found that an employer violated the Labor Code when it fired an employee for engaging in a discussion of bonus payments with co-workers. At a meeting with co-workers, the employee discussed the fact that some received bonuses while others did not. Six days later, she was fired. The termination papers indicated the termination was for violating organization rules. A company investigation concluded that the bonus discussion was one reason for her termination.

The court said she had the right to a trial on her claim for an unlawful termination. The claim was based directly on California Labor Code section 232, which the court interpreted to include discussion of bonuses as well as wages.2

Under California’s Fair Pay Act, employers cannot prohibit employees from:

• Disclosing their own wages
• Discussing the wages of others
• Inquiring about another employee’s wages
• Aiding or encouraging employees to exercise their right to equal pay

This law does not create an obligation to disclose wages.3

Pay secrecy is considered to be a factor contributing to wage inequality. For more information, see Wage Equality —Fair Pay Act.

The National Labor Relations Act (NLRA) also protects discussions of wages and working conditions, by providing employees with the right to discuss the terms and conditions of their employment with other employees. For more information, see Protected Concerted Activity in Union and Non-Union Workplaces.

1. Lab. Code sec. 232