February 26, 2024

Draft Rule Would Ban Federal Government Contactors From Asking About Salary History

A regulation proposed by the Biden administration would prohibit federal contractors and subcontractors from seeking and considering information about job applicants’ compensation history when making employment decisions.

The rule, offered by the Federal Acquisition Regulatory (FAR) Council, is intended to increase gender and race equity for workers.

If implemented as written, the proposal would also require contractor disclosure of compensation in job announcements for positions that will work on or in connection with a government contract, and it would further require contractors to notify prospective applicants of their right not to provide compensation history and to obtain compensation for a job opening.

Comments on the proposed rule must be submitted by April 1, 2024.

As one law firm explained, “Under the proposed rule, if a contractor is non-compliant, complaints may be filed with a Department of Labor-identified point of contact at the agency that issued the solicitation or awarded the contract within 180 days from the date the violation occurred.” Click here to read more.

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