OFCCP Pay Transparency Rule Takes Effect.

Benefits Insights, Spring 2016

The final rule to implement Executive Order (EO) 13665, Non-Retaliation for Disclosure of Compensation Information, took effect on January 11, 2016, amending existing regulations on discrimination. The rule prohibits federal contractors and subcontractors from discharging or otherwise discriminating against employees for discussing, disclosing, or inquiring about compensation.

The U.S. Department of Labors Office of Federal Contract Compliance Programs (OFCCP) issued the final rule in September 2015 to promote federal contractor pay transparency. The rule, which prohibits pay secrecy policies, is intended to help make the federal contractor workforce more efficient by leveling the playing field for women and minorities and providing employers access to a more diverse pool of qualified talent.

EO 13665, signed by President Obama, enables workers and job applicants to share information about pay and compensation without fear of discrimination or retaliation by federal contractors and subcontractors. The rule also prescribes a nondiscrimination provision for existing employee manuals and handbooks, defines key terms, and provides contractors with two defenses to a discrimination allegation.

A copy of the final rule can be found at www.gpo.gov/fdsys/pkg/FR-2015-09-11/pdf/2015-22547.pdf.

OFCCP Pay Transparency Rule Takes Effect