Solo and Small Firm

The Practitioner VOLUME 30, ISSUE 1, SPRING 2024

PAY TRANSPARENCY – YOUR WAGES DON’T HAVE TO BE A SECRET ANYMORE

Marina Kats Fraigun*

California employment law is replete with provisions that are counter-intuitive. One such area of law is pay secrecy/pay transparency. Can an employer fire an employee for discussing their wages? The answer is a clear "no".

Under both State and Federal law, an employer is not permitted to take action against an employee for discussing their wages. However, these laws fly directly in the face of what most people believe to be true (and perhaps want)—that compensation is secret.

Pay secrecy is a workplace policy that prohibits employees from talking about how much money they make with co-workers. According to the Harvard Business Review, "… pay secrecy remains the informal norm or formal policy for roughly half of all U.S. employees..."1

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