In 2014, President Obama issued Executive Order 13665, promoting pay transparency and openness, making it possible for workers and job applicants to share information about their pay and compensation without fear of discrimination.
On September 10, 2015, the Department of Labor issued a Final Rule implementing that order. This Final Rule takes effect on January 11, 2016, 120 days after its publication in the Federal Register, and amends the existing regulations that implement EO 11246.
The Final Rule amends the EO 11246 implementing regulations by:
- Requiring that certain information be included in covered federal contracts and subcontracts.
- Requiring that federal contractors incorporate a prescribed nondiscrimination provision into their existing employee manuals or handbooks and disseminate the nondiscrimination provision to employees and to job applicants;
- Defining key terms such as compensation, compensation information, and essential job functions as used in EO 11246, as amended; and
- Providing employers with two defenses to an allegation of discrimination: a general defense, which could be based on the enforcement of a "workplace rule" that does not prohibit the discussion of compensation information; and an essential job functions defense.
To read the full article taken from the OFCCP website, click here.
There is a FAQ section that provides additional insight and details. The final rule is effective 1/11/2016 and applies to all new contracts over $10K.
Read the Final Rule
Read Executive Order 13665
Read Executive Order 11246
Source: Office of Federal Contract Compliance Programs (OFCCP)
This information is intended to be educational and should not be considered legal advice on any specific matter. |