Pay Secrecy/Confidentiality Rules and the National Labor Relations Act

Posted: 14 Nov 2003

See all articles by Rafael Gely

Rafael Gely

University of Missouri School of Law

Leonard Bierman

Texas A&M University - Department of Management

Abstract

For many years employers have been confronted with the issue of whether to allow employees to openly discuss their pay, or instead to require employees to keep information regarding their compensation confidential. Survey data indicates that a significant sector of private sector employers in the United States have formal rules prohibiting employees from discussing their pay with others. Furthermore, survey data also suggests that a significant majority of managers would prefer to establish such rules. Interestingly, these rules continue to be quite prevalent despite the fact that they have consistently been held to be illegal under the National Labor Relations Act. This Article seeks to provide a comprehensive account of doctrinal issues related to the use of pay secrecy/confidentiality rules under the NLRA. After discussing both the use of these rules and the current legal framework under which pay secrecy rules are evaluated, we ponder about the future of PSC rules under the NLRA given current trends in the American workplace.

Keywords: National Labor Relations Act, NLRA

JEL Classification: J53, K31, K42

Suggested Citation

Gely, Rafael and Bierman, Leonard, Pay Secrecy/Confidentiality Rules and the National Labor Relations Act. Available at SSRN: https://ssrn.com/abstract=467303

Rafael Gely (Contact Author)

University of Missouri School of Law ( email )

Missouri Avenue & Conley Avenue
Columbia, MO MO 65211
United States

Leonard Bierman

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States

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