American Painting Contractor

Contractor penalized for firing painter who discussed salary

It’s the conversation no owner wants to overhear.

Two of your employees are comparing notes on their salaries. One is making less, but that’s because of their experience and skillset. Yet no one is offering that perspective in this conversation.

For many painting contractors, few things create more discomfort than employees openly discussing pay. It can feel like a loss of control, or even a direct challenge to your authority.

But no matter how much you don’t like it, you’re not allowed to stop it.

That’s the lesson from the National Labor Relations Board, where a judge ruled this month against a small painting contractor in Cincinnati. 

The dispute stemmed from an employee talking about his wage rate with coworkers on two separate occasions. Soon after the second discussion, the supervisor texted that “we heard that you had talked about how much money we are paying you and we can’t have that here” and fired the employee.

Later, the company’s general manager claimed the termination was due to lack of work, though he alluded to the issue discussing salaries with coworkers, saying it “really shouldn’t have been done.”

The judge in the case ultimately found the lack of work explanation wanting. There was no proof of a work shortage, and there was no explanation why the employee was not allowed to finish the job he was working on.

The judge ruled that firing the employee constituted unlawful discharge.

Now the small painting contractor will have to rehire the painter, with full backpay and interest compounded daily, as well as other penalties.

It’s a good reminder about the dangers of telling your employees they can’t discuss their wages. The National Labor Relations Act protects employees’ right to engage in “concerted activity,” which includes talking with one another about compensation, hours, and working conditions.

If you’re worried about salary comparisons, a better strategy is to make sure your compensation structure stands up to scrutiny.

When employees talk, you want the numbers to hold up even if you’re not there to explain them.