Federal Contractors Be Alert: OFCCP Pay Transparency Requirements Are Here
Effective January 11, 2016, federal contractors or subcontractors who enter into or modify existing contracts with the federal government in amounts greater than $10,000 must comply with Executive Order 13665 (“Non-Retaliation for Disclosure of Compensation Information”). This Executive Order prohibits contractors and subcontractors from discriminating against employees or applicants who talk about their pay or ask about others’ pay.
Federal contractors and subcontractors are required to post nondiscrimination notices containing the following language and include it in their handbooks:
The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information.
Federal contractors are required to:
- include the language shown above in their covered federal contracts and subcontracts;
- include the language shown above in their employee handbooks; and
- post the language shown above to employees and applicants
Federal contractors must use the nondiscrimination provision provided by the United States Department of Labor. The provision can be accessed here.
These requirements are effective now, and any federal contractors or subcontractors should contact employment counsel to ensure they are in compliance.
