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Don't ask or tell: Pay secrecy policies in U.S. workplaces
11 Brookings Drive, St. Louis, MO 63130, United States.
Abstract:
How widespread are workplace rules against discussing wages and salaries in the U.S.? And what are the core correlates of whether or not an employer prohibits or discourages this type of speech? Using a unique dataset that includes a measure of whether workers are prohibited or discouraged from discussing pay, this article investigates the prevalence of pay secrecy policies, and what worker- and workplace-level characteristics are associated with these rules. Key findings reveal that these policies are commonplace, despite being illegal, and that they are concentrated in more "coercive" rather than "enabling" organizations. These more coercive workplaces are disproportionately in the private sector, lack union representation, and have managers that are generally punitive in their approach and unaccommodating of employees. Findings also indicate that the greater discretion pay secrecy provides managers does not result in discriminatory application of these rules to women, racial/ethnic minorities, or immigrants. The article concludes with a call for data collection efforts that would allow researchers to analyze the consequences of this widespread managerial practice.
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