An employee handbook that includes a broad confidentiality policy or restricts reasonable employee speech violates both state and federal law. California law prohibits employers from publishing or enforcing policies that limit the employee’s right to discuss wages and working conditions.1

The National Labor Relations Board (NLRB) has rejected overly broad polices if the employee could reasonably interpret that the policy restricts the discussion of wages and other terms and conditions of employment with fellow employees. The NLRB may interpret such policies as violating employees’ rights under section 7 of the National Labor Relations Act to discuss the terms and conditions of employment. Section 7 rights apply to all employees in both union and non-union workplaces. For example, provisions that generally prohibit employees from discussing “employee information” or “work matters” can be considered overbroad.

The NLRB rejected a policy that included “violating a confidence or unauthorized release of confidential information” among behaviors that could result in disciplinary action. The NLRB ruled that the handbook content violated federal labor law because employees could reasonably interpret that it restricts discussion of wages and other terms and conditions of employment with fellow employees and unions.2

As a best practice, check your employee handbook policy to be sure it is not overly broad and does not prohibit or discourage employee activity that is protected by state or federal law. Specifically identify the types of information protected by the confidentiality rule, such as trade secrets and customer information. For more information, see Provide an Employee Handbook.

  • A s ample confidentiality policy is available as part of CalChamber’s Employee Handbook Creator®. Visit our online store to find out more about how to quickly and easily create your employee handbook.

1. Lab. Code secs. 232, 232.5, 1197.5

2. Cints Corp., 344 NLRB No. 118 (June 30, 2005)