Practical Answers to Employment Law Issues
January 31, 2024 - Pay Equity, Department of Labor (DOL), OFCCP

Proposed Rule Seeks to Mandate Pay Transparency and Ban Using Salary History for Federal Contractors

New Guidance on COVID-19 Protocols for Contractor Employees at Federal Facilities

On January 29, 2024, the Biden administration issued a Proposed Rule that would prohibit federal contractors from seeking and considering compensation history when making employment decisions and require contractors to disclose compensation being offered in job postings. If implemented, the requirements will apply broadly to all federal contracts and subcontracts that are principally performed in the United States and cover all jobs that work on or in connection with a covered contract. Covered applicants and employees can submit complaints of alleged violations to the applicable contracting agency to “take action as appropriate,” and those agencies must forward to the Office of Federal Contract Compliance Programs (OFCCP) any such complaints that also allege discrimination.

Released in recognition of the 15th anniversary of the Lilly Ledbetter Fair Pay Act, the Proposed Rule further implements the policies that the Biden administration announced in its March 15, 2022, Executive Order 14069 to advance pay equity and transparency in federal contracting. It also follows the trend of states passing pay equity and transparency laws requiring businesses to post pay information in job postings and prohibiting use of salary history information. Contractors should consider reviewing their pay equity and transparency practices now in light of the Proposed Rule so they can be prepared to comply should the rule become final.  

Read the full client alert.