Implement fair, transparent compensation practices

Q         Are there any laws regulating whether managers and supervisors are allowed to know the compensation of the employees they supervise?

There’s currently no law that regulates whether managers and supervisors are allowed to know the compensation of the employees they supervise. Employers may therefore implement policies restricting the sharing of this information. However, you cannot restrict employees in nonsupervisory positions from discussing their compensation with their coworkers.

Section 7 of the National Labor Relations Act (NLRA) ensures employees, even in non-union settings, can “engage in other concerted activities” such as the right to discuss wages amongst themselves. Most employees in the private sector are covered under the NLRA. However, the law doesn’t cover government employees, agricultural laborers, independent contractors, or supervisors.

Under the NLRA, the term "supervisor" means any individual having the authority to hire, fire, transfer, suspend, or to effectively recommend such action along with the use of independent judgment. Therefore, supervisors generally cannot assert claims for violations of “concerted activity” rights.