On Jan. 29, the Biden administration unveiled two new rules that would limit the use of pay history for federal employees and employees of federal contractors.
The Office of Personnel Management has issued a policy for agencies that will limit the use of salary history in the process of determining pay for employment inside the government. This newly implemented law will apply to federal employees.
President Joe Biden made a statement about the action, remarking that the order comes on the 15-year anniversary of the Lilly Ledbetter Fair Pay Act, put into place under the Obama administration. According to the president, the legislation was a “landmark victory in the fight for equal pay.”
“Despite this progress, the fight for equal pay continues,” President Biden said in a Jan. 29 statement. “Women workers are still paid on average 84 cents for every dollar paid to men, and the disparities are even greater for many women of color.
“Today, my Administration is taking new actions to advance pay equity for the federal workforce and employees of federal contractors. These new actions adopt commonsense policies that will help pay millions of workers fairly, close gender and racial wage gaps, and yield tangible benefits for the federal government and federal contractors. These policies are good for workers, our economy, and for families.”
The proposed rule, which the Federal Acquisition Regulatory Council is expected to publish on Jan. 29, would also institute pay transparency measures that require contractors to disclose compensation ranges in job postings.
The series of initiatives are aimed at pay equity within the federal workforce and among employees of federal contractors.
The Office of Personnel Management will implement a final rule to ensure that federal agencies no longer factor in an individual’s past or current pay when setting compensation. This move seeks to reduce pay discrimination and ensure that salaries are based on qualifications and expertise rather than historical pay.
Another initiative focuses on enhancing pay transparency in federal contracting. According to the White House’s announcement, the Federal Acquisition Regulatory Council is set to propose regulations that would prohibit federal contractors and subcontractors from seeking or considering job applicants’ compensation history during the hiring process. Additionally, these contractors will be required to disclose expected salary ranges in job postings. This step aims to increase transparency, facilitate fair salary negotiations, and minimize pay disparities.
Furthermore, the Department of Labor’s Office of Federal Contract Compliance Programs will issue guidance clarifying existing protections against discrimination in hiring and pay decisions. This guidance will help federal contractors and prospective employees understand when reliance on an individual’s compensation history may result in unlawful discrimination.
According to the White House, these measures align with the administration’s broader efforts to address wage gaps and strengthen economic security, particularly for women. The administration pointed to its reported investments in job creation, access to well-paying positions, and support for caregivers as contributing factors to the reduced unemployment rate among women.
“My Administration will continue to call on Congress to pass the Paycheck Fairness Act, to increase pay transparency and strengthen our tools to fight sex-based pay discrimination,” the president’s statement went on to say. “Today and every day, Vice President Harris and I remain committed to building on the promise of the Lilly Ledbetter Fair Pay Act and strengthening the economic security of women across the country.”
From The Epoch Times
