An employee's discussion of salary with a coworker proved costly. HR cut a verbally promised 21% raise, sparking a debate on social media about transparency and retaliation in the workplace.

Salary Hike Disputes: A new controversy has emerged regarding pay transparency in the workplace. An employee who was promised a 21 percent annual salary increase reportedly suffered a setback after discussing the matter with a coworker. Following this discussion, the company's Human Resources (HR) department drastically reduced the proposed salary increase. The incident went viral, sparking sharp reactions online about "backstabbing" and corporate policies.

$73,000 promised and $5,500 cut

According to reports, the employee's annual salary was $60,000 (approximately ₹50 lakh), and he was verbally promised a raise to $73,000. However, during a casual conversation, the employee told a coworker about the raise.

As soon as this information reached HR, the employee was informed that his revised salary would now be only $67,500. This resulted in a direct pay cut of $5,500 (approximately Rs 4.5 lakh) from the initial promise. The employee claims this pay cut was simply punishment for discussing salary.

What do labor laws say? (NLRA rules)

The incident has also drawn the attention of legal experts. Under the US National Labor Relations Act (NLRA), employees have the legal right to discuss wages, bonuses, and other terms of employment with their coworkers. This is considered protected concerted activity.

The law prohibits employers from taking any retaliatory action against employees for salary discussions. Experts say that if it is proven that the pay cut was solely due to salary talk, the company could face an investigation by the National Labor Relations Board (NLRB).

The Risk of Verbal Promises

HR experts warn that while the law protects salary discussions, verbal offers have limited legal validity. Unless a salary revision is issued in writing or recorded in the payroll system, employers can make changes. This creates a gray area where it becomes difficult for employees to prove their point.

Global debate on pay transparency

This incident has further fueled calls for pay transparency worldwide. Companies in many countries are now adopting disclosure norms to address gender pay gaps and wage inequality. Critics argue that penalizing salary discussions undermines these reform efforts and promotes bias in the workplace.

People on social media are also criticizing the coworker who allegedly brought the matter to HR. This case has served as a lesson for employees about the importance of having documentation during salary negotiations.