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Discussing pay at work has always been problematic for employers, but they are prohibited from forbidding employees to discuss salaries. Even though the National Labor Relations Act (NRLA) protects employees from unfair labor practices, many companies still written or verbal policies against discussing salary. Hilst Enterprises, Inc. d/b/a La-Z-Boy Furniture Galleries, got an expensive lesson in violating federal policy when the National Labor Relations Board (NRLB) charged the company with discharging two employees who had raised issues about working conditions, wages, and hours with the employer.
In June 2022 a complaint was brought to the attention of the NLRB, Region 25-Indianapolis concerning Hilst Enterprises. The company was being charged with coercive unlawful rules and concerted activities, specifically prohibiting the discussing wages and hours, and working conditions. Such conduct is allowed under the NRLA and cannot be prohibited, with or without a union. Hilst Enterprises fired two employees who brought complaints to the employer. The NLRB contends that the two employees were fired as an example to discourage other employees from talking about wages and bringing it to the attention of the employer.
Last month, the NRLB and Hilst Enterprises came to a settlement to resolve the case. Hilst agreed to rescind its policies that violated the NRLA and mail and email notice to all employees about their rights to discuss wages and working conditions. In addition, Hilst will pay $297,000 in back wages, medical bills, interest, mileage and excess tax to the two employees who were fired. The unlawful discharges would be removed from their files. The employees will also be given a letter of apology.
NLRB Region 25 Regional Director Patricia K. Nachand said, “I applaud the great work of Region 25 staff investigating and litigating the case and obtaining this excellent settlement.”
Under the NRLA employees have the right to act together to improve their working conditions and wages, even if they don’t have a union. The NLRA investigates thousands of complaints each year pertaining to unfair labor practices.
