Does the NLRA apply to all employees?

The NLRA covers most private-sector employees. However, it excludes supervisors, managers, independent contractors, agricultural workers, and employees of federal, state, or local governments.

What should I do if my contract contains a salary secrecy clause?

Do not sign under duress. Request that the clause be removed or amended to include a 'savings clause' that explicitly carves out rights protected by Section 7 of the NLRA. Consult with legal counsel or use an AI analysis tool like TermScore to flag the provision.

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.

Can an employment NDA legally prohibit me from disclosing my salary to coworkers?

No. Under the National Labor Relations Act (NLRA), most private-sector employees have the federally protected right to discuss wages and working conditions. Any NDA clause attempting to restrict these discussions is generally unenforceable and may constitute an unfair labor practice under federal law.

The Legal Foundation: Section 7 of the NLRA

The National Labor Relations Act (NLRA) is the primary federal statute protecting your right to discuss compensation. Section 7 grants employees the right to engage in 'concerted activities' for the purpose of collective bargaining or other mutual aid or protection.

Why Salary Discussions are Protected

The National Labor Relations Board (NLRB) has consistently ruled that discussing wages is a protected concerted activity because it is a necessary precursor to collective action, such as requesting a raise or addressing pay equity issues. Even if you are not part of a union, these protections apply to you.

Key takeaway: An employer cannot fire, discipline, or threaten you for discussing your salary with coworkers, regardless of what your NDA says. If an employer attempts to enforce such a clause, they are likely violating federal labor law.

Action Item: If you are currently in a dispute regarding salary disclosure, document all communications where your employer attempted to restrict your speech and consult with an NLRB regional office.

Exceptions and Limitations

While the NLRA provides broad protection, it is not universal. Understanding the boundaries of these protections is critical for compliance.

Who is Not Covered?

Supervisors and Managers: Individuals with the authority to hire, fire, or discipline others are generally excluded from NLRA protections.
Independent Contractors: If you are classified as a 1099 contractor rather than a W-2 employee, you do not enjoy the same Section 7 rights.
Public Sector Employees: Federal, state, and local government employees are governed by different statutes, though many states have enacted their own pay transparency laws.
Agricultural Workers: These workers are specifically excluded from the NLRA definition of 'employee.'

Category	NLRA Protection Status
Private Sector W-2 Employee	Protected
Manager/Supervisor	Not Protected
Independent Contractor	Not Protected
Public Sector Employee	State-specific laws apply

Action Item: Verify your employment classification in your contract. If you are labeled an 'independent contractor' but perform the duties of an employee, you may have a misclassification claim.

Identifying Red Flags in Your NDA

Employers sometimes use 'boilerplate' language that is overly broad. You should scan your contract for specific phrases that attempt to silence pay discussions.

Common Prohibited Clauses

'Confidential Compensation': Clauses stating that 'all compensation details are strictly confidential' and 'disclosure to any third party is prohibited.'
'Non-Disparagement' Overreach: Language that prevents you from discussing 'any aspect of your employment' with others.
'General Confidentiality': Broad definitions of 'Proprietary Information' that include salary, bonus, or equity data.

Review the 'Confidential Information' definition: Does it explicitly list salary or compensation?
Look for a 'Savings Clause': A valid contract should state: 'Nothing in this agreement shall be construed to prohibit protected concerted activity under Section 7 of the NLRA.'
Check for Severability: Ensure the contract has a clause stating that if one part is found illegal, the rest of the contract remains in effect.

Key takeaway: If your NDA lacks a savings clause, it is a significant red flag. You have the right to request an addendum that clarifies your rights under the NLRA.

Action Item: Use a highlighter to mark any section of your contract that mentions 'confidentiality' and 'compensation' in the same paragraph. These are the areas that require immediate legal scrutiny.

State-Level Pay Transparency Laws

Beyond the federal NLRA, many states have passed specific pay transparency laws that go even further. For example, states like California, Colorado, and New York have strict requirements regarding salary disclosure and pay equity reporting.

Why State Laws Matter

State laws often provide a private right of action, meaning you can sue your employer directly for damages if they attempt to enforce a salary secrecy clause. These laws often mandate that employers disclose salary ranges in job postings, further cementing the legal trend toward total pay transparency.

Action Item: Search your state’s Department of Labor website for 'Pay Transparency' or 'Wage Disclosure' statutes to see if your state offers additional protections beyond the federal baseline.

How TermScore Can Help

Navigating complex legal language in an employment contract can be daunting. TermScore uses advanced AI to instantly scan your employment agreements, flagging restrictive covenants and clauses that may violate federal labor laws like the NLRA. By identifying these issues before you sign, TermScore empowers you to negotiate from a position of strength and ensure your rights remain protected.