Biden administration announces steps to prohibit use of salary history for federal employees, contractors

The Biden administration announced two new measures on Monday that would prohibit the use of federal employees and federal contractors’ pay history.

For federal employees, the Office of Personnel Management announced new regulations that prohibit the use of salary history in setting salaries for roles within the government.

The government has announced proposed rules for federal contractors that would prohibit contractors from requesting or considering information about a job applicant’s past compensation when making hiring decisions.

The proposed rule, released Monday by the Federal Acquisition Regulatory Commission, would also create pay transparency measures that would require contractors to disclose compensation ranges in job postings.

“Relying on a candidate’s salary history exacerbates existing inequalities in the pay structure and disproportionately impacts women and workers of color,” Shalanda Young, director of the Office of Management and Budget, told reporters. There is a possibility.”

Both this regulation and the proposed rule are part of an effort to reduce salary secrecy so that federal employers can disclose expected salary ranges in job postings and assist workers in their negotiations.

With this announcement, the Biden administration commemorated the 15th anniversary of the Lilly Ledbetter Fair Pay Act. The law, signed during the Obama administration, expanded important protections against wage discrimination.

“Despite this progress, the fight for equal pay continues. Women workers still earn an average of 84 cents for every dollar paid to men, and for many women of color, the disparity remains It’s even bigger. Today, my administration is taking new steps to improve pay equity for federal employees and federal contractor employees,” President Biden said in a statement.

The restrictions for federal employees will be postponed to January 30th and take effect 60 days later. The proposed rules for federal contractors will be subject to a 60-day public comment period.