Small business owners in Louisiana, Mississippi, or Texas: Restricting your employees from discussing their wage information has been ruled as unlawful by the Fifth Circuit.
In the case of Flex Frac Logistics, L.L.C. v. National Labor Relations Board, (NLRB), it was found that Flex Frac Logistics’ confidentiality policy can be interpreted in a way that implies that the company is attempting to keep their workers from sharing information about wages and compensation; both within and outside the workplace. This is in violation of the National Labor Relations Act or NLRA, according to the Fifth Circuit Court of Appeals.
Although Flex Frac Logistics’ policy did not include the word ‘wage’, it did use the terms ‘financial information, including costs’ which was interpreted by the NLRB as encompassing information about wage.
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If you have a confidentiality policy that is similar to Flex Frac Logistics’, you will want to take some time to review and update the policy if applicable to avoid any issues stemming from language within the policy that can be broadly interpreted. It does not hurt to have an HR professional or employment lawyer double check the language.
Read more about this case here.
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