Biden Administration Proposes New Pay Transparency/Equity Rule for Federal Contractors

Jan 31, 2024

On January 30, 2024, the Biden Administration published a proposed regulation to prohibit federal contractors and subcontractors from using job applicant’s prior salary history when setting pay and to require federal contractors to disclose the expected salary range in job postings. Comments on the proposal are due by April 11.


The proposed rule would:


  1. Prohibit federal contractors and subcontractors from seeking and considering information about job applicants’ compensation history when making employment decisions about personnel working on or in connection with a government contract; and
  2. Require federal contractors and subcontractors to disclose the compensation to be offered to the hired applicant for any position to be performed on or in connection with a contract in all advertisements for job openings involving work on or in connection with a government contract placed by or on behalf of the contractor or subcontractor.


In addition, the new rule establishes a complaint process for applicants who allege noncompliance with the new requirement. Such complaints would be filed with the appropriate agency while discrimination complaints would continue to be filed with OFCCP.


The Notice of Proposed Rulemaking (NPRM) by the FAR Council was announced on January 29, 2024 as part of the Biden Administration’s commemoration of the Lilly Ledbetter Fair Pay Act and to implement Executive Order 14069, Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency.


FortneyScott will continue to monitor these developments and provide updates as appropriate. Clients with questions can reach out to their FortneyScott attorney. 

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