Nebraska bans pay secrecy rules

Overview:  Nebraska has enacted legislation (Legislative Bill 217) that will prohibit employers from discriminating against applicants and employees because they inquired about, discussed, or disclosed information regarding employee wages, benefits, or other compensation.  

Effective Date: Legislative Bill 217 takes effect three months after the legislature’s adjournment, which is scheduled for June 6, 2019. This means that unless the adjournment date changes, the effective date would be September 6, 2019.

Details:

Covered Employers:

Legislative Bill 217 doesn’t apply to employers that are exempt from the state’s Fair Employment Practices Act (FEPA).  The FEPA generally covers all private employers with 15 or more employees for each working day in 20 or more weeks in the current or preceding calendar year. The FEPA also covers state and local governments, regardless of the number of employees.

Note: Under Section 7 of the National Labor Relations Act (NLRA), employees have, among other things, the right to act together to improve wages and working conditions and to discuss wages, benefits, and other terms and conditions of employment, with or without a union. The National Labor Relations Board (NLRB), which enforces the NLRA, and many courts have found that pay secrecy or pay confidentiality rules violate Section 7 rights.  The NLRA generally applies to all employers.

Exceptions:

Legislative Bill 217 doesn’t apply to instances in which an employee who has authorized access to other employees’ wages, benefits, or other compensation as a part of their job function discloses the information to a person who does not otherwise have authorized access to it, unless such disclosure is in response to a charge, complaint, investigation, proceeding, hearing, or other action.

The law also doesn’t:

·      Create an obligation for any employer or employee to disclose information regarding employee wages, benefits, or other compensation;

·      Permit an employee, without the written consent of the employer, to disclose proprietary information, trade secret information, or information that is otherwise subject to a legal privilege or protected by law. Proprietary information does not include information regarding employee wages, benefits, or other compensation;

·      Permit an employee to disclose information regarding wages, benefits, or other compensation of other employees to an employer’s competitor;

·      Permit an employee to discuss information regarding employee wages, benefits, or other compensation during working hours, as defined in existing workplace policies, or in violation of specific contractual obligations; or

·      Permit an employee to disseminate information regarding employee wages, benefits, or other compensation to the general public. General public does not include public officials, judicial officers, legislators, trade associations, or other reasonable third parties for the employee's mutual aid or protection.

Action Required:  Nebraska employers should review policies, practices, and supervisor training to ensure compliance with Legislative Bill 217.

Please contact your dedicated service professional with any questions.