Is it legal for an NDA to prevent me from discussing my salary?

No. Under Section 7 of the National Labor Relations Act (NLRA), most private-sector employees have the protected right to discuss wages and working conditions. An NDA clause prohibiting these discussions is generally unenforceable and violates federal law.

What are the red flags of an illegal NDA?

Red flags include overly broad definitions of 'confidential information' that encompass compensation, threats of termination for discussing pay, and lack of explicit carve-outs for protected concerted activity.

How can I check if my NDA is compliant?

Review your contract for specific language regarding 'compensation' or 'salary' as confidential. Use tools like TermScore to scan for clauses that conflict with NLRA protections.

A TermScore is an AI-generated risk rating from 0 to 100 that evaluates the fairness and risk level of any legal document. A score of 86-100 means the contract is highly favorable, while 0-30 indicates dangerous terms you should walk away from.

What types of documents can TermScore analyze?

TermScore analyzes any legal document including freelance contracts, employment agreements, residential leases, NDAs, brand sponsorship deals, SaaS vendor agreements, and rental applications. Upload PDFs, Word documents, or images.

How much does TermScore cost?

TermScore offers a free plan with 3 scores per month. The Team plan is $15/month for 30 scores, and the Professional plan is $50/month for 500 scores with team collaboration features.

Is my document data secure?

Yes. Documents are processed in memory and analysis results are stored encrypted. TermScore never shares your document data with third parties and you can delete your data at any time from your dashboard.

How can I tell if my employment NDA is being used to illegally restrict my right to engage in protected concerted activity regarding my salary?

An employment NDA illegally restricts your rights if it explicitly prohibits discussing wages, benefits, or working conditions. Under Section 7 of the National Labor Relations Act (NLRA), these discussions are protected concerted activity. Any clause attempting to silence these conversations is generally unenforceable and unlawful.

Understanding Protected Concerted Activity

The National Labor Relations Board (NLRB) maintains that employees have the right to engage in "concerted activity" for the purpose of collective bargaining or other mutual aid or protection. This includes discussing your salary with coworkers to identify pay disparities or advocate for better compensation.

Key Protections Under the NLRA

Wage Transparency: You have a federally protected right to discuss your pay, bonuses, and benefits with colleagues.
Mutual Aid: You may discuss working conditions to organize or address grievances with management.
Non-Retaliation: Employers cannot fire, discipline, or threaten you for exercising these rights.

Key takeaway: If your NDA defines "confidential information" to include your salary or compensation, that specific provision is likely invalid under federal law.

Action Item: Review your NDA's "Confidential Information" definition. If it lists "compensation" or "salary" without an explicit exception for protected activity, it is a primary target for legal scrutiny.

Identifying Red Flags in Your NDA

Employers often bury restrictive language in dense legalese. Look for these specific patterns that suggest an attempt to chill your rights:

Red Flag Clause Type	Typical Language Used	Why It Is Problematic
Broad Confidentiality	"Employee shall not disclose any financial terms of employment."	Directly conflicts with NLRA Section 7 rights.
Non-Disparagement	"Employee shall not make negative statements about the Company."	Can be used to silence legitimate complaints about pay.
Broad Scope	"All information learned during employment is confidential."	Overly broad; fails to distinguish between trade secrets and protected speech.

Common Evasive Tactics

The "Catch-All" Clause: Using vague terms like "any and all information" to imply that salary is a trade secret.
The "Disparagement" Trap: Framing salary complaints as "disparaging the company's reputation" to justify termination.
The "At-Will" Threat: Reminding employees that they can be fired for "any reason," implying that discussing pay is a fireable offense.

Action Item: Create a list of every clause in your contract that mentions "confidentiality" or "non-disclosure" and highlight any that do not explicitly exclude "wages and working conditions."

Jurisdictional Nuances and State Laws

While the NLRA provides a federal floor, several states have enacted even stricter protections for wage transparency. For example, states like California, Colorado, and New York have specific statutes requiring employers to disclose salary ranges and prohibiting retaliation for pay discussions.

State-Level Considerations

California: Labor Code Section 232 prohibits employers from requiring employees to refrain from disclosing the amount of their wages.
Colorado: The Equal Pay for Equal Work Act mandates transparency and prohibits employers from restricting wage discussions.
New York: Recent amendments to the Labor Law strengthen protections against retaliation for discussing compensation.

Action Item: Search your state's Department of Labor website for "pay transparency laws" to see if your state offers protections beyond the federal NLRA.

Steps to Take If You Suspect an Illegal NDA

If you believe your NDA is being used to suppress your rights, follow this structured approach to protect yourself:

Document Everything: Keep a copy of your signed agreement and any communications where management discusses confidentiality.
Consult Counsel: Speak with an employment attorney who specializes in labor law to assess the enforceability of your specific contract.
File an Unfair Labor Practice (ULP) Charge: If you have been retaliated against, you can file a charge with your local NLRB regional office.
Use AI Analysis: Leverage automated tools to flag problematic clauses before you sign or to audit existing agreements.

Key takeaway: Never sign an NDA that you suspect is illegal without first seeking legal counsel or using a contract analysis tool to identify specific high-risk provisions.

TermScore can automatically analyze your employment contracts to identify clauses that conflict with the NLRA or state-level wage transparency laws. By scanning for restrictive language, TermScore provides you with the clarity needed to understand your rights and negotiate more effectively.