Are employers allowed to require employees to keep their pay confidential?

In California, employers are allowed to require employees to keep their pay confidential. This is because of federal and state labor laws protecting the confidentiality of an employee’s pay. The National Labor Relations Act prohibits employers from interfering with employees’ right to discuss their wages with each other. Despite this, employers may still ask employees to keep their pay confidential if it is in the company’s best interests. Employees should know that, as long as their employer is in compliance with state and federal laws, they can require their employees to keep their pay private. This does not mean employers cannot disclose the overall wage and salary structure of the company or how salaries are determined and reviewed. Employers are able to communicate any information about the wages and salaries of the company as long as it does not reveal the actual amounts earned by any individual employee. Employers who require employees to keep their pay confidential should provide written notice to the employee. This notice should spell out exactly which information is confidential, and how the employer plans to handle any breach of confidentiality. Employees should also be aware of their rights under state and federal law, and how they should proceed if they feel their employer is asking them to keep their pay confidential in a manner that is illegal or violates their rights.

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