June 27, 2022

Volume XII, Number 178

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June 27, 2022

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President Biden Issues Executive Order Promoting New Pay Equity and Transparency Requirements On Federal Contractors

On March 15, 2022, President Biden issued his Executive Order on Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency (the “Order”).

Among other things, the Order requires the Federal Acquisition Regulatory Council (“FAR Council”) to “consider issuing proposed rules … enhancing pay equity and transparency for job applicants and employees of Federal contractors and subcontractors.”  In so doing, the FAR Council is required to “specifically consider whether any such rules should limit or prohibit Federal contractors and subcontractors from seeking and considering information about job applicants’ and employees’ existing or past compensation when making employment decisions,” and “the inclusion of appropriate accountability measures in any such rules.”

For now, nothing changes for contractors.  However, it is likely a new federal acquisition regulation imposing new pay equity and transparency requirements on contractors and subcontractors will be issued in the near future and incorporated into new federal contracts.

The Order was issued on the same day OFCCP issued a new directive addressing federal contractors’ obligations to assess their compensation systems and turning over pay equity audits to the agency during OFCCP audits.

We will monitor and report on developments related to the Order.

© 2022 Proskauer Rose LLP. National Law Review, Volume XII, Number 76
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About this Author

Guy Brenner, Labor Attorney, Proskauer Rose, arbitration proceedings Lawyer
Partner

Guy Brenner is a partner in the Labor & Employment Law Department and co-head of the Non-Compete & Trade Secrets Group. He has extensive experience representing employers in both single-plaintiff and class action matters, as well as in arbitration proceedings. He also regularly assists federal government contractors with the many special employment-related compliance challenges they face.

Guy represents employers in all aspects of employment and labor litigation and counseling, with an emphasis on non-compete and trade secrets issues,...

202-416-6830
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