In Tesla, Inc., N.L.R.B. A.L.J., Case 12-CA-293359 (April 25, 2023), the National Labor Relations Board (NLRB) upheld a decision by an administrative law judge (ALJ) that Tesla managers violated the rights of workers to discuss their wages or seek assistance from upper management.
The case arose after several Tesla employees at its Orlando collision center learned that new hires were being paid more than them. When the employees began to discuss their pay, the facility managers instructed employees individually and in group meetings to stop and discouraged employees from taking their complaints to upper management. Tesla later posted a notice informing employees that managers may not restrict employees from discussing their wages.
The ALJ found, and the NLRB affirmed, that the managers' actions clearly violated the National Labor Relations Act (NLRA), which protects employees' right to discuss their wages with each other. Tesla's attempt to remedy the situation by posting a notice informing employees of their rights was inadequate. The notice failed to name the managers who had violated the law, did not address the ways in which Tesla had interfered with employees' right to discuss their wages, and failed to adequately provide sufficient notice to affected employees, including former employees impacted by Tesla’s actions.
As a result, Tesla is required to cease and desist from violating employee rights and post a new notice of the violations in the collision center and email the notice to employees.
This case is a reminder that employers cannot prohibit employees from discussing their wages. Employees have the right to discuss their wages with each other, and employers cannot retaliate against employees for doing so. Employers should conduct regular training of managers at all levels to understand and follow through with company policy (e.g., the employee handbook), especially an open-door policy.
Managers and supervisors must understand that employees’ protected concerted activity is their right, even in non-union settings. Employers should be open to all discussions of terms and conditions of employment, by and between all employees, and carry the message in word and in practice.
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