March 18, 2025 | Category: Uncategorized

In today’s fast-changing job market, more people are asking for clear information about pay. But what does this mean for companies and workers? Pay transparency is not just about showing salaries; it’s about having open discussions about pay practices in a company.

In the past, talking about salaries was seen as a bit of a taboo and employees were discouraged from having these discussions. However, there has been a growing movement towards greater pay transparency between employees, between companies and employees, and between companies and applicants.

As pay transparency becomes more common, it is important for employers to understand the law around pay transparency and the protections in place for workers who want to discuss wages.

The State of the Law on Pay Transparency and Wage Discussions

Both Nevada and federal law provide protections in the workplace for workers regarding wage discussions.  It is important that employers are aware of these protections to ensure that they remain complaint under the law.

Nevada’s Pay Transparency Requirements

In October 2021, Senate Bill 293 (SB293) went into effect. SB293 was enacted to promote pay equity and transparency within the state. It implemented specific prohibitions regarding what information should be sought from applicants regarding pay. It also established disclosure requirements for employers when it came to wage rates or salary ranges for applicants and employees.  

Under Nevada’s pay transparency law, employers are prohibited from the following:

  • Seeking the wage or salary history of an applicant;
  • Relying upon the wage or salary history of an applicant to determine whether to offer employment or the rate of pay for the applicant;
  • Refusing to interview, hire, promote, or employ an applicant if the applicant does not provide a wage or salary history; or
  • Discriminating against or retaliating against an applicant that does not provide a wage or salary history.

Employers are not prohibited from asking an applicant for their wage or salary expectations for the position for which they are applying.

Additionally, under Nevada’s pay transparency law, employers are required to provide wage and salary information to applicants and employees who apply for transfers or promotions in certain circumstances.

Employers must provide applicants with the wage or pay range for the position once they have completed an interview for the position. Employers must provide current employees who have applied for a promotion or transfer within the company the wage or salary range for the new position if the employee has:

  • Completed an interview for the promotion or transfer, or been offered the promotion or transfer; and
  • Requested the wage or salary range or pay rate for the promotion or transfer.

Employee Protections for Discussing Wages in Nevada

Nevada law also provides protections for employees to discuss wages in the workplace. NRS 613.330 prohibits an employer from discriminating or retaliating against the inquiry, discussion, or voluntary disclosure of wages. Failure to comply with this law constitutes an unlawful employment practice. This means employees have the right to discuss wages with each other, and employers cannot prohibit them from doing so.

The only exception to this particular law, is that it does not apply to any person who has access to wage information as part of their essential job functions, like someone who works in human resources or payroll. They can be prohibited from disclosing wage information to a person without access. However, they are permitted to disclose when ordered by the Labor Commissioner or a court of competent jurisdiction.

Wage Discussions Protected under the NLRA

Unlike the state of Nevada, there are no wage transparency laws at a federal level. However, the National Labor Relations Act (NLRA) does provide protections to workers who discuss their wages in the workplace. The NLRA applies to nearly all private sector employers with some very limited exceptions.

Under Section 7 of the NLRA, employees have the right to engage in concerted activities for the purpose of mutual aid or protection, which includes discussing wages with coworkers.  Wages are considered a vital term and condition of employment, and discussions of wages are often preliminary to other actions for mutual aid or protection. In addition to the protection under Section 7, Section 8 of the NLRA makes violations of Section 7 an unfair labor practice. As such, employers are barred from having policies that prohibit employees from discussing wages.

There are some limits under the NLRA when it comes to discussions about pay and benefits in the workplace; however, employers should use restraint when deciding whether to impose limits on these types of conversations. Employers can place reasonable restrictions on the time, place, and manner of these discussions. For example, an employer can limit discussions to non-work time or in non-work areas such as break room.  Any limitations on these types of conversation though, can be risky and the safest approach by an employer is to allow employees to have these discussions in the workplace with no limitations.

Federal Law Protects Workers from Retaliation for Discussing Wages

The Equal Employment Opportunity Commission (EEOC), which enforces federal workplace harassment and discrimination laws, also cautions employers about retaliating against workers for discussing wages at work. Under federal discrimination laws, employees are protected from retaliation in the workplace for engaging in a protected activity. The EEOC has advised that asking managers or co-workers about salary information to uncover potentially discriminatory wages is considered a protected activity. As such, employers can open themselves up to retaliation claims if they subject an employee to an adverse employment action for inquiring about or discussing information.

Review Your Pay Practices for Compliance & Competitiveness

Adopting pay transparency takes time and needs good planning. The first step is to review your organization’s pay practices. You should find any issues or differences in pay.

Start by doing a detailed internal pay equity audit, scrutinizing salaries across all departments and job roles. This audit will be the starting point for making needed changes.

Analyze pay for equal work (same job, same skill, same effort, same responsibility). Examine pay for work of comparable worth (different jobs, similar value to the organization). Identify and address any systemic biases that may contribute to pay disparities. Based on the audit results, develop a plan to rectify identified pay gaps. Prioritize adjustments based on the severity and impact of the disparities. Document the rationale for all pay adjustments, ensuring consistency and fairness.

Next, review external resources to ensure your salary ranges and employee benefits align with the market. Compare your salary ranges and employee benefits to those of comparable organizations in your industry and geographic region. Extend the review beyond base pay. Include all forms of compensation: bonuses, stock options, retirement plans, health insurance, and other benefits.

Keep in mind that pay transparency is a continuous process. You should regularly check and update your pay philosophy and salary structures. This will help them stay in line with new rules and what applicants and employees expect.

Implementing Pay Transparency & Alleviating Privacy Concerns

Moving to a culture where pay is open can bring its own challenges. It’s important to talk about people’s worries regarding privacy and how they might feel uncomfortable discussing salaries. Good communication and clear rules are key to making this work.

A common worry about pay transparency is how it affects employee privacy. Some workers might not like their coworkers knowing what they earn. It’s important for companies to deal with these feelings in a positive way. To address this issue, businesses can use transparency methods that offer both openness and confidentiality.

For instance, sharing salary ranges for job types or pay grades can give information about pay practices while still keeping individual salaries private. Also, making it clear that revealing details about pay is not a requirement. Meaning, employees are not required to reveal their salary or wage information to other employees if they don’t feel comfortable doing so.

Conclusion

The shift towards greater pay transparency is fundamentally reshaping the employer-employee dynamic. Employers must navigate this complex legal landscape with diligence, ensuring their practices align with both state and federal mandates to avoid legal repercussions. Ultimately, embracing pay transparency is not merely about legal compliance; it’s about building a more informed, fair, and mutually beneficial workplace for all.