Biden Administration Announces Steps to Ban Use of Salary History for Federal Employees and Contractors

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The Biden administration announced two new measures Monday to ban the use of salary history for federal employees and federal contractors.

For federal workers, the Office of Personnel Management (OPM) announced new regulations for agencies that will prohibit the use of salary history to set compensation for government positions.

For federal contractors, the administration announced a proposed rule that would prohibit contractors from seeking and considering information about applicants’ past compensation when making employment decisions.

The proposed rule, which the Federal Acquisition Regulatory Council will release Monday, would also institute pay transparency measures that would require contractors to disclose pay ranges in job postings.

“Relying on a candidate’s salary history can exacerbate pre-existing inequities in our salary structures and disproportionately impact women and workers of color,” Office of Management Director Shalanda Young told reporters. and budget.

Both the regulation and the proposed rule aim to encourage federal employers to disclose expected salary ranges in job offers and reduce salary secrecy to help workers negotiate.

The Biden administration marked the 15th anniversary of the Lilly Ledbetter Fair Pay Act with these announcements. The law, signed during the Obama-Biden administration, expanded important protections against pay discrimination.

“Despite this progress, the fight for equal pay continues. Female workers are still paid an average of 84 cents for every dollar paid to men, and the disparities are even greater for many women of color. Today, my administration is taking new steps to advance pay equity for the federal workforce and federal contractor employees,” Biden said in a statement.

The regulations affecting federal employees will take effect on January 30 and will take effect 60 days later. And the proposed rule for federal contractors will be subject to a 60-day public comment period.

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