{"id":1539,"date":"2016-01-06T10:39:33","date_gmt":"2016-01-06T18:39:33","guid":{"rendered":"http:\/\/re-tales.net\/?p=1539"},"modified":"2016-01-06T10:39:33","modified_gmt":"2016-01-06T18:39:33","slug":"when-the-boss-says-dont-tell-your-coworkers-how-much-you-get-paid","status":"publish","type":"post","link":"https:\/\/re-tales.net\/?p=1539","title":{"rendered":"When the Boss Says, &#8216;Don&#8217;t Tell Your Coworkers How Much You Get Paid&#8217;"},"content":{"rendered":"<div class=\"article-above fluid-container\">\n<div class=\"article-cover\">\n<div class=\"article-cover-content-wrapper\">\n<div class=\"article-cover-content\">\n<p class=\"dek\">\u00a0 \u00a0 When I was a store manager with Longs, we had a lot of discretion as to how much we could pay people, unlike today. \u00a0If you had a particularly strong applicant with experience you could offer them more, and if they were doing a good job for you, you were allowed to give merit raises and\/or promote them to higher paying positions.<\/p>\n<p class=\"dek\">\u00a0 \u00a0 The rule &#8220;Don&#8217;t discuss your pay with anyone else&#8221; has always been around, and I have to admit I am guilty of saying it myself, but\u00a0as the article from <a href=\"http:\/\/theatlantic.com\" target=\"_blank\">theatlantic.com<\/a> says,\u00a0apparently it&#8217;s illegal to do so! \u00a0 My philosophy was to make sure everyone was being paid fairly, so if there was an inequity in my store for some reason (i.e. new hire making more than someone that had been there for a year) I would generally fix it so that things were right instead of just hoping the underpaid employee didn&#8217;t find out, simply because it was the right thing to do. \u00a0You get what you pay for, and managers who tried to squeeze their employees for a dime here or a dime here generally were not successful. \u00a0(Unfortunately in today&#8217;s world, they have no choice as raises are only given annually and solely based on performance metrics.)<\/p>\n<p class=\"dek\">\u00a0 \u00a0 \u00a0So I guess the law exists for good reason, if an employee is getting underpaid they have a right to know. \u00a0 If someone is getting paid less for good reason (i.e. poor performance, lack of experience) it should just be explained to them as such and not just kept in the dark. \u00a0Whether or not you tell them &#8220;Don&#8217;t talk about your pay&#8221; they will talk to each other and there&#8217;s nothing you can do about that. \u00a0In fact, it&#8217;s against the law to tell them that in the first place. \u00a0I learn something new every day.<\/p>\n<p class=\"dek\"><em>Whether I was working as a barista or a paralegal, the story was the same: My employers wanted me to keep my mouth shut about money.<\/em><\/p>\n<\/div>\n<\/div>\n<figure class=\"lead-img \">\n<div class=\"img-wrapper\"><picture class=\"img\"><img decoding=\"async\" src=\"http:\/\/cdn.theatlantic.com\/assets\/media\/img\/mt\/2014\/07\/shutterstock_152176700-1\/lead_large.jpg?1430154796\" alt=\"\" \/><\/picture><\/div><figcaption>\u00a0<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<div class=\"article-body\">\n<section id=\"article-section-1\">\u00a0 \u00a0 \u00a0<em>Last fall, I became a barista in a small, \u201csocially responsible\u201d coffee company. A few months later, I got a temporary paralegal position at one of the world\u2019s biggest multinational, corporate law firms.<\/em><em>The two companies had little in common, but both told me one thing: <span style=\"color: #ff0000;\">Don&#8217;t talk to your coworkers about your pay.<\/span><\/em><\/p>\n<p><em>At the law firm, this warning was conveyed to me during my salary negotiation. After I had worked for three months through a temp agency, the firm offered me a spot on their payroll. Given the size and success of the firm, the starting salary seemed low.<\/em><\/p>\n<p><em>The HR manager tried to convince me that the offer was competitive. She told me that she couldn\u2019t offer more because it would be unfair to other paralegals. She said that if we did not agree to a salary that day, then she would have to suspend me because I would be working past the allowed temp phase. I insisted that she look into a higher offer and she agreed that we could meet again later. Before I left, she had something to add.<\/em><\/p>\n<\/section>\n<div class=\"ad-boxinjector-wrapper\"><em>\u00a0<\/em><\/div>\n<section id=\"article-section-2\"><em>\u201cMake sure you don\u2019t talk about your salary with anyone,\u201d she said sweetly, as if she was giving advice to her own son. \u201cIt causes conflict and people can be let go for doing it.\u201d (This is to the best of my recollection, not verbatim.)<\/em><em>It wasn\u2019t all that surprising to hear this from a corporate HR manager. What was surprising was the d\u00e9j\u00e0 vu.<\/em><\/p>\n<p><em>Just three months earlier, some of my coworkers at the coffee shop told me that our bosses, who worked in the office on salaries, and even the owner, got a higher cut of the tips than we did. One barista told me that when she complained about it, the managers reduced her hours.<\/em><\/p>\n<p><em>When you make minimum wage and have to fight for more than 30 hours per week, tips are pretty important, so I sat down with my managers to discuss the controversy. That\u2019s when they told me not to talk about it with the other baristas. The owner \u201chates it when people talk about money,\u201d my manager added, and \u201cwould fire people for it if he could.\u201d I sulked back to the espresso machine, making my lattes at half speed and failing to do side work.<\/em><\/p>\n<p><span style=\"text-decoration: underline;\"><strong><span style=\"color: #ff0000;\"><em>In both workplaces, my bosses were breaking the law.<\/em><\/span><\/strong><\/span><\/p>\n<p><em>Under the National Labor Relations Act of 1935 (NLRA), all workers have the right to engage \u201cconcerted activity for mutual aid or protection\u201d and \u201corganize a union to negotiate with [their] employer concerning [their] wages, hours, and other terms and conditions of employment.\u201d In six states, including my home state of Illinois, the law <a href=\"http:\/\/codes.lp.findlaw.com\/ilstatutes\/820\/112\/10\" data-omni-click=\"r'article',r'link',r'0',r'374467'\">even more explicitly protects<\/a> the rights of workers to discuss their pay.<\/em><\/p>\n<p><em>This is true whether the employers make their threats verbally or on paper and whether the consequences are firing or merely some sort of cold shoulder from management. My managers at the coffee shop seemed to understand that they weren&#8217;t allowed to fire me solely for talking about pay, but they may not have known that it is also illegal to discourage employees from discussing their pay with each other. <a href=\"http:\/\/www.npr.org\/2014\/04\/13\/301989789\/pay-secrecy-policies-at-work-often-illegal-and-misunderstood\" data-omni-click=\"r'article',r'link',r'1',r'374467'\">As NYU law professor Cynthia Estlund explained to NPR<\/a>, the law &#8220;means that you and your co-workers get to talk together about things that matter to you at work.&#8221; Even &#8220;a nudge from the boss saying &#8216;we don&#8217;t do that around here&#8217; &#8230; is also unlawful under the National Labor Relations Act,&#8221; Estlund added.<\/em><\/p>\n<\/section>\n<div class=\"ad-boxright-wrapper\" data-pos=\"boxright\"><\/div>\n<section id=\"article-section-3\"><em>And yet, gag rules thrive in workplaces across the country. In a report updated this year, the Institute for Women\u2019s Policy Research found that about <a href=\"http:\/\/www.iwpr.org\/publications\/pubs\/pay-secrecy-and-wage-discrimination\" data-omni-click=\"r'article',r'link',r'2',r'374467'\">half of American employees in all sectors<\/a> are either explicitly prohibited or strongly discouraged from discussing pay with their coworkers. In the private sector, the number is higher, at 61 percent.<\/em><em>This is why President Obama recently signed <a href=\"http:\/\/www.washingtonpost.com\/politics\/obama-to-sign-two-executive-orders-aimed-at-narrowing-gender-gap-in-wages\/2014\/04\/07\/3f0ce4a8-be74-11e3-bcec-b71ee10e9bc3_story.html\" data-omni-click=\"r'article',r'link',r'3',r'374467'\">two executive actions<\/a> addressing workplace transparency and accountability. One prohibits federal contractors from retaliating against employees who discuss their pay with one another. The other requires contractors to provide compensation data on their employees, including race and sex. But while these actions protect workers at federally contracted employers, they do not affect others.<\/em><\/p>\n<p><em>The bill that would cover the rest of workers is the <a href=\"https:\/\/beta.congress.gov\/bill\/113th-congress\/senate-bill\/84\" data-omni-click=\"r'article',r'link',r'4',r'374467'\">Paycheck Fairness Act<\/a>. The law would both strengthen penalties to employers who retaliate against workers for discussing pay and require employers to provide a justification for wage differentials.<\/em><\/p>\n<p><em>These reforms are necessary to address this widespread, illegal problem that the law has failed to address for decades. Gag rules violate a fundamental labor right and allow for discriminatory pay schemes.<\/em><\/p>\n<aside class=\"pullquote instapaper_ignore\"><em>\u201cThe problem isn\u2019t so much that the remedies are inadequate,\u201d Becker says, \u201cbut that so few workers know their rights.\u201d<\/em><\/aside>\n<p><em>Given their illegality, why are gag rules so common? One answer is that the NLRA is toothless and employers know it. When employees file complaints, the National Labor Relations Board\u2019s <a href=\"http:\/\/www.nlrb.gov\/what-we-do\/investigate-charges\" data-omni-click=\"r'article',r'link',r'5',r'374467'\">\u201cremedies\u201d<\/a> are <a href=\"http:\/\/www.nwlc.org\/sites\/default\/files\/pdfs\/paysecrecyfactsheet.pdf\" data-omni-click=\"r'article',r'link',r'6',r'374467'\">slaps on the wrist<\/a>: reinstatement for wrongful termination, back-pay, and\/or \u201cinformational remedies\u201d such as \u201cthe posting of a notice by the employer promising to not violate the law.\u201d<\/em><\/p>\n<p><em>At the same time, ignorance of the law can just as easily fuel gag rules. Craig Becker, general counsel for the AFL-CIO, used to serve on the National Labor Relations Board. He told me that workers who called the NLRB rarely were aware that their employer\u2019s pay secrecy policy was unlawful.<\/em><\/p>\n<\/section>\n<div class=\"ad-boxinjector-wrapper\"><em>\u00a0<\/em><\/div>\n<section id=\"article-section-4\"><em>\u201cThe problem isn\u2019t so much that the remedies are inadequate,\u201d Becker said, \u201cbut that so few workers know their rights.\u201d He says that even among those workers who are aware of the NLRA, many think that it protects unions but no one else. Now overseeing organizers at the AFL-CIO, Becker has found that before organizers even begin helping workers, they have to educate employees on this very basic law. \u201cWorkers call us up saying they\u2019re unhappy and they want to organize,\u201d Becker explains, \u201cand when organizers look at the employee manual, sure enough, they find a policy saying that workers aren\u2019t allowed to discuss their pay.\u201d<\/em><em>Gag rules, then, are policies that flourish when employers know the law and their employees do not.<\/em><\/p>\n<p><em>But why do employers do this in the first place? Many employers say that if workers talk to each other about pay, then tension is sure to follow. It\u2019s understandable: If you found out that your coworker made more than you for doing the same work, then you\u2019d probably be upset.<\/em><\/p>\n<p><em>A <a href=\"http:\/\/eml.berkeley.edu\/~moretti\/ucpay.pdf\" data-omni-click=\"r'article',r'link',r'7',r'374467'\">study by economists David Card, Enrico Moretti, and Emmanuel Saez from Berkeley and Alexandre Mas from Princeton supports that prediction<\/a>. To study the relationship between pay transparency, turnover, and workplace satisfaction, they selected a group of employees in the University of California system and showed them a website that lists the salaries of all UC employees. They found that employees who were paid above the median were unaffected by using the website, while those who were paid lower than the median became less satisfied with their work and more likely to start job hunting. This result suggests, according to the authors, that employers have an incentive to keep pay under wraps. \u00a0<\/em><\/p>\n<p><em>The limitation of this research is that it doesn\u2019t tell us much about whether those employees\u2019 dissatisfaction was a bad thing. While it\u2019s possible that those employees were getting a fair wage and just felt belittled by their comparative pay, it\u2019s also possible that they were getting stiffed.<\/em><\/p>\n<aside class=\"pullquote instapaper_ignore\"><em>Do gag rules directly cause wage discrimination? That&#8217;s unknown, but they undoubtedly open the door to it.<\/em><\/aside>\n<p><em>And many workers are, in fact, getting stiffed\u2014especially women and people of color. Recall the story of Lilly Ledbetter, the inspiration of the <a href=\"http:\/\/en.wikipedia.org\/wiki\/Lilly_Ledbetter_Fair_Pay_Act_of_2009\" data-omni-click=\"r'article',r'link',r'8',r'374467'\">Lilly Ledbetter Act<\/a>, which gives workers a longer period of time to file pay discrimination suits against their employer. Ledbetter was told that she <a href=\"http:\/\/www.washingtonpost.com\/opinions\/lilly-ledbetter-says-the-president-can-do-more-for-equal-pay-sign-an-executive-order\/2014\/01\/17\/3eae5e62-7e0d-11e3-93c1-0e888170b723_story.html\" data-omni-click=\"r'article',r'link',r'9',r'374467'\">would be fired<\/a> if she talked about pay with her coworkers, but after nearly three decades of work with Goodyear, someone slipped her a note saying that she was underpaid.<\/em><\/p>\n<\/section>\n<div class=\"ad-boxright-wrapper\" data-pos=\"boxright\"><\/div>\n<section id=\"article-section-5\"><em>Ledbetter\u2019s case shows how pay secrecy can cause the pay gap between men and women, a gap that widens between men and women of color. More than 50 years after the Equal Pay Act, <a href=\"http:\/\/www.aauw.org\/files\/2013\/02\/graduating-to-a-pay-gap-the-earnings-of-women-and-men-one-year-after-college-graduation.pdf\" data-omni-click=\"r'article',r'link',r'10',r'374467'\">study<\/a> <a href=\"http:\/\/www.nwlc.org\/resource\/50-years-counting-unfinished-business-achieving-fair-pay\" data-omni-click=\"r'article',r'link',r'11',r'374467'\">after<\/a> <a href=\"http:\/\/www.iwpr.org\/initiatives\/pay-equity-and-discrimination\/#publications\" data-omni-click=\"r'article',r'link',r'12',r'374467'\">study<\/a> show that women are still paid less than men for the same work. <a href=\"http:\/\/www.theatlantic.com\/business\/archive\/2013\/05\/the-biggest-myth-about-the-gender-wage-gap\/276367\/\" data-omni-click=\"r'article',r'link',r'13',r'374467'\">Some<\/a> <a href=\"http:\/\/www.theatlantic.com\/business\/archive\/2012\/10\/why-are-women-paid-less\/263776\/\" data-omni-click=\"r'article',r'link',r'14',r'374467'\">have<\/a> <a href=\"http:\/\/www.pbs.org\/newshour\/bb\/obama-signs-executive-orders-on-pay-transparency\/\" data-omni-click=\"r'article',r'link',r'15',r'374467'\">argued<\/a> that the pay gap is effectively a myth, attributing it to women\u2019s career choices rather than workplace discrimination. If only that were true. As the National Women\u2019s Law Center has repeatedly <a href=\"http:\/\/www.nwlc.org\/sites\/default\/files\/pdfs\/wage_gap_faqs_sept_2013.pdf\" data-omni-click=\"r'article',r'link',r'16',r'374467'\">pointed out<\/a>, this \u201cignores the fact that \u2018women\u2019s\u2019 jobs often pay less precisely because women do them, because women\u2019s work is devalued, and that women are paid less even when they work in the same occupations as men.\u201d Even when you look at industries dominated by one sex or the other, the pay gap <a href=\"http:\/\/www.nwlc.org\/sites\/default\/files\/pdfs\/final_nwlc_equal_pay_report.pdf\" data-omni-click=\"r'article',r'link',r'17',r'374467'\">exists in both<\/a>.<\/em><em>Ariane Hegewisch is the study director at the Institute for Women\u2019s Policy Research and the author of several reports on pay secrecy and wage discrimination. One of the reasons she sees behind the pay gap is that, five decades after the Civil Rights Act outlawed discrimination on the basis of sex, old-fashioned workplace beliefs still justify sexist pay distribution. For example, in one case, in which a group of women sued Walmart for sexist discrimination in pay and promotions, women <a href=\"http:\/\/www.nwlc.org\/sites\/default\/files\/pdfs\/final_nwlc_equal_pay_report.pdf\" data-omni-click=\"r'article',r'link',r'18',r'374467'\">testified<\/a> that their managers said men \u201care working as the heads of their households, while women are just working for the sake of working,\u201d even though women are now the sole or primary breadwinners in around <a href=\"http:\/\/www.pewsocialtrends.org\/2013\/05\/29\/breadwinner-moms\/\" data-omni-click=\"r'article',r'link',r'19',r'374467'\">40 percent<\/a> of American households.<\/em><\/p>\n<p><em><a href=\"http:\/\/www.huffingtonpost.com\/2011\/06\/13\/negotiate-young-women-college-graduates-first-job_n_875650.html\" data-omni-click=\"r'article',r'link',r'20',r'374467'\">Others<\/a> <a href=\"http:\/\/money.usnews.com\/money\/personal-finance\/articles\/2013\/07\/02\/are-women-lousy-salary-negotiators\" data-omni-click=\"r'article',r'link',r'21',r'374467'\">have<\/a> <a href=\"http:\/\/hbr.org\/2003\/10\/nice-girls-dont-ask\/\" data-omni-click=\"r'article',r'link',r'22',r'374467'\">explained<\/a> the pay gap by showing that women are less likely to ask for raises. True as this is, the solution isn\u2019t as simple as <a href=\"http:\/\/leanin.org\/book\/\" data-omni-click=\"r'article',r'link',r'23',r'374467'\">telling women to speak up<\/a>. Several experiments by Hannah Bowles of Harvard and Linda Babcock and Lei Lai of Carnegie Mellon University have shown that employers are more likely to penalize women than men for negotiating. This suggests that women bite their tongues to avoid being called \u201cpushy\u201d or \u201cbossy,\u201d words with<a href=\"http:\/\/www.theatlantic.com\/business\/archive\/2014\/05\/pushy-is-used-to-describe-women-twice-as-often-as-men\/371291\/\" data-omni-click=\"r'article',r'link',r'24',r'374467'\">particularly negative connotations for women<\/a>.<\/em><\/p>\n<\/section>\n<div class=\"ad-boxinjector-wrapper\"><\/div>\n<section id=\"article-section-6\"><em>We don\u2019t know whether gag rules directly cause wage discrimination, but they undoubtedly open the door to it. Employers who keep pay secret are free to set pay scales on arbitrary bases or fail to give well-deserved raises because of social norms. &#8220;When you don&#8217;t have transparency and accountability,\u201d Hegewisch told me, \u201cemployers react to these pressures and biases and women tend to lose out.&#8221;<\/em><em>Of course, one of the time-tested mechanisms of preventing wage discrimination, unionization, has been in steady decline for decades. Jake Rosenfeld, associate professor of sociology at the University of Washington, has studied <a href=\"http:\/\/www.hup.harvard.edu\/catalog.php?isbn=9780674725119\" data-omni-click=\"r'article',r'link',r'25',r'374467'\">unions<\/a> and is now researching the relationship between pay secrecy and wage discrimination. He told me that although there is not enough data to draw a direct causal line between pay secrecy and unfair wages, we do know that in the public sector, where wage transparency is far more common, pay tends to be more equal and benefits are more evenly distributed.<\/em><\/p>\n<p><em>But in both the public and the private sector, union decline has shifted the balance of power toward employers in a way that can allow employers to keep wages secret and pay their workers unfairly. \u201cRemoving a key source of collective power in the vast majority of workplaces opens up space for employers to institute new wage setting practices, and pay secrecy is one of them,\u201d Rosenfeld says. \u201cIt\u2019s much harder to keep the books closed when you have a union arguing left and right to open them up.\u201d<\/em><\/p>\n<p><em>Republican lawmakers have blocked the Paycheck Fairness Act three times,<a href=\"http:\/\/www.huffingtonpost.com\/2014\/04\/09\/paycheck-fairness-act_n_5118254.html\" data-omni-click=\"r'article',r'link',r'26',r'374467'\">claiming<\/a> that it would just increase lawsuits against employers. They\u2019ve also argued that forcing firms to share their compensation practices would hurt business. But according to Hegewisch, there\u2019s no evidence that lawsuits have increased in states where pay transparency laws have been strengthened, and firms already share compensation information through human resources services like <a href=\"http:\/\/www.worldatwork.org\/home\/html\/home.jsp\" data-omni-click=\"r'article',r'link',r'27',r'374467'\">WorldatWork. \u00a0<\/a><\/em><\/p>\n<p><em>If the law did change, we would still face one of the biggest barriers to pay transparency: workpla<\/em>ce <em>culture. Even the most confident among us can melt into awkward, self-conscious messes when we have to negotiate our salaries, and asking a coworker about pay seems akin to asking about their sex life. <a href=\"http:\/\/www.inc.com\/jeff-haden\/inside-buffer-company-complete-transparency.html\" data-omni-click=\"r'article',r'link',r'28',r'374467'\">Private<\/a>\u00a0<a href=\"http:\/\/www.npr.org\/blogs\/money\/2014\/07\/02\/327758712\/the-company-where-everyone-knows-everyone-elses-salary?utm_source=facebook.com&amp;utm_medium=social&amp;utm_campaign=npr&amp;utm_term=nprnews&amp;utm_content=20140702\" data-omni-click=\"r'article',r'link',r'29',r'374467'\">companies<\/a> are showing that opening up the books completely can work, while the public sector has done that for decades, yet many still fear that talking about pay would destroy our workplace collegiality.<\/em><\/p>\n<p><em>On the day my bosses at the coffee shop told me not to talk tips, my morale hit bottom. An organization I once trusted was telling me not to ask basic questions about my compensation. Even if pay secrecy comes with good intentions, this is its unintended effect: It tells workers that their bosses have something to hide, or that they don\u2019t have the right to get a second opinion on whether they are being treated fairly. As Craig Becker told me, \u201cWorkers can only improve their situation when they can understand their working conditions.\u201d Deciding whether a pay scale is fair cannot be left up to the employer alone.<\/em><\/p>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 \u00a0 When I was a store manager with Longs, we had a lot of discretion as to how much we could pay people, unlike today. \u00a0If you had a particularly strong applicant with experience you could offer them more, and if they were doing a good job for you, you were allowed to give <a class=\"read-more\" href=\"https:\/\/re-tales.net\/?p=1539\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,9],"tags":[],"class_list":["post-1539","post","type-post","status-publish","format-standard","hentry","category-managers-and-bosses","category-retail-employees"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/re-tales.net\/index.php?rest_route=\/wp\/v2\/posts\/1539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/re-tales.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/re-tales.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/re-tales.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/re-tales.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1539"}],"version-history":[{"count":3,"href":"https:\/\/re-tales.net\/index.php?rest_route=\/wp\/v2\/posts\/1539\/revisions"}],"predecessor-version":[{"id":1544,"href":"https:\/\/re-tales.net\/index.php?rest_route=\/wp\/v2\/posts\/1539\/revisions\/1544"}],"wp:attachment":[{"href":"https:\/\/re-tales.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/re-tales.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/re-tales.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}