California Wage Transparency Law: Understand Your Rights to Discuss Compensation

April 26, 2025

California Wage Transparency Law: Employee Rights Explained 

Wage Transparency Is Protected by Law

Talking about how much you earn can feel taboo—but in California, it’s not only your right, it’s protected by law. Still, many workers wonder: Can I get in trouble for discussing my pay with coworkers? The short answer is no—but let’s break down your rights and what you can do if your employer crosses the line. 


Wage Transparency Is Protected by Law 


California is a national leader in protecting workers’ rights to discuss wages. Under California Labor Code § 232 , employers cannot prohibit employees from disclosing, discussing, or inquiring about their own wages or the wages of others. 


In other words, you're allowed to ask others what they earn. And you're allowed to share your own salary information—without fear of retaliation. 



Why Is Wage Transparency So Important? 


Wage transparency is a powerful tool for workers. It helps expose pay discrimination, close gender and racial wage gaps, and empower employees to advocate for fair compensation. 


Employers sometimes benefit from secrecy—but employees rarely do. If you don’t know what others are making, it’s much harder to know if you’re being underpaid. That’s exactly why wage transparency rights exist—to level the playing field. 


 

What About “Pay Secrecy” Policies or Agreements? 


If your employer has a policy that says you can’t talk about your pay, that policy is likely illegal. 


Similarly, if you were asked to sign a contract, handbook, or confidentiality agreement restricting wage discussions, it may not be enforceable under California law. 


Employers who discipline or fire employees for discussing wages may be violating both state and federal law—and you may be entitled to legal remedies. 


 

Can You Be Fired for Discussing Pay? 


No—at least not legally. If you are fired, demoted, disciplined, or harassed because you talked about wages, that may constitute unlawful retaliation. 


In California, retaliation for wage discussions is strictly prohibited. If you’ve experienced this, you may be entitled to: 

 

  • Reinstatement to your job 
  • Backpay or lost wages 
  • Additional compensation for emotional distress 
  • Attorney’s fees and legal costs 

 


What Should You Do If You’re Punished for Talking About Pay? 

 

  • Document Everything: Keep records of emails, texts, and notes about the incident in question and any acts of retaliation. 
  • Talk to Coworkers (If Safe to Do So): If they have experienced similar treatment they may be willing to support your claims. 
  • Contact an Employee Rights Attorney: An experienced California employment lawyer can help you understand your options and help you fight back. 

 


If you’ve been punished or retaliated against for discussing wages, Lawyers for Employee and Consumer Rights is here to help. Contact us today for a free, confidential consultation and get the legal support you deserve. 

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