Pay Equity Bulletin
April 10, 2023
Pay Equity Bulletin: Spring 2023
This winter brought significant developments in pay equity matters. March 14 marked Equal Pay Day for women, which should serve as a reminder for employers to conduct pay equity assessments on a regular basis in order to avoid enforcement actions and legal claims related to unequal pay.
In addition, a number of states implemented or passed laws requiring the disclosure of pay ranges in job postings that will cover any employer posting positions for remote work that can be performed in those states.
U.S. Marks Equal Pay Day
Tuesday, March 14 was Equal Pay Day for 2023. Equal Pay Day is not attached to a particular date but instead marks the day each year that women catch up to the earnings of men for the prior year. Women on average still earn only 84 cents on each dollar a man earns, and the figure is significantly worse for many minority women. Equal Pay Day should serve as a yearly reminder to employers to assess their pay practices for discrimination. Employers that assess their compensation structure through pay equity audits are less likely to attract enforcement actions and costly litigation.
While the federal government took no significant action on Equal Pay Day to advance pay equity, statements from leadership in the Biden administration emphasize that the administration remains ready and willing to bring enforcement actions against employers with discriminatory pay practices. On Equal Pay Day, Charlotte Burrows, Chair of the Equal Employment Opportunity Commission (EEOC), issued a statement touting the accomplishments made towards equal pay since Equal Pay Day was instituted in 1996, when the event came a month later. But Chair Burrows cautioned that “[w]hile we have gradually chipped away at the gender pay gap, we still have significant work to do.” President Biden marked the day by issuing a Proclamation calling on Congress to pass the Paycheck Fairness Act, which would make it more difficult for employers to defend pay disparities in legal proceedings and would make it largely unlawful for employers to make decisions about compensation for new employees based on past compensation history.
The Acting Secretary of Labor, Julie Su, also issued press release noting what DOL is doing to close the pay gap and specifically noting OFCCP’s issuance of a fact sheet on proactive approaches to pay equity. Former OFCCP Director Jenny Yang posted on the DOL blog, Recommitting to Pay Equity on Equal Pay Day, in which she outlined how to improve pay equity, concluding that “[p]ay equity benefits all workers and the economy.”
Woman do not just lag behind men in compensation. According to a U.S. Government Accountability Office report released on Equal Pay Day, they are also underrepresented in management positions. Moreover, women compromise only 10% of the CEOs of Fortune 500 companies.
Remote Workers Covered by New Pay Range Disclosure Laws
This winter there have been significant developments regarding pay transparency laws across the country. New York State enacted a law requiring disclosure of pay ranges in job advertisements and California and Washington State issued much needed guidance for employers seeking to comply with similar laws that went into effect in those states on January 1. Employers should be paying attention to these laws regardless of whether they have worksites New York, California, or Washington because postings for remote work in those states will be covered.
- On December 21, 2022, New York Governor Kathy Hochul signed into law a bill requiring employers with four or more employees to include wage or salary ranges in all advertisements for hire, promotion, or transfer. The law would apply to all jobs “that can or will be performed, at least in part, in the State of New York.” The law extends to remote workers located in New York and is set to go into effect on September 17, 2023.
- Also in December, California and Washington State released guidance to assist employers in complying with their laws requiring disclosure of pay ranges in job postings. According to the guidance documents, both laws will cover postings for positions that can be performed remotely within those states.
- Washington State’s pay range disclosure law requires every job posting to include a wage scale or salary range, a description of available benefits, and an explanation of any other compensation offered. The Washington guidance lays out strict requirements for what information about benefits and other types of compensation must be included in the job posting, making Washington’s law arguably the most strenuous in the nation from a compliance perspective.
- The California guidance does not require employers to disclose benefits or other forms of compensation.
Employers across the country offering remote work in any of these states should be reviewing the requirements of the new laws even if they do not have operations in California, New York or Washington State because any remote positions will fall under the jurisdiction of those laws. Moreover, Colorado was the first to pass a law requiring disclosure of pay ranges in job postings and its law covers remote workers located in the state as well. Not to mention there are numerous municipalities and localities that passed similar laws, such as New York City and Jersey City, NJ, some of which may cover remote workers. Employers should not assume their job postings are free from coverage.
The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: The Directive’s scope and coverage Reporting obligations under the Directive Status of Member State transposition Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance.
Join FortneyScott attorneys on Thursday, June 11, 2026, from 12:00 p.m. to 1:00 p.m. EDT for a complimentary webinar on the European Union (“EU”) Pay Transparency Directive (the “Directive”). To register, please click here . The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: · The Directive’s scope and coverage · Reporting obligations under the Directive · Status of Member State transposition · Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance. Register to attend. To register, please click here .
On Thursday, May 14, the U.S. Department of Labor’s Wage and Hour Division issued a technical amendment removing the salary threshold increases under 29 C.F.R. Part 541, adopted in April 2024. DOL stated that it was following the decisions made by federal courts in November, and that the amendment reinstated the 2019 salary levels applicable to the executive, administrative, and professional exemptions under the Fair Labor Standards Act. The current salary levels are $684 per week for exempt employees and $107,432 annually for highly compensated employees. This change codifies the enforcement posture DOL has maintained since the 2024 rule was invalidated. While this does not alter current compliance obligations, it resolves regulatory inconsistency by restoring the 2019 framework in the regulations and eliminating the 2024 provisions. Employers should confirm that exemption classifications continue to be evaluated against the reinstated 2019 thresholds and remain attentive to any future rulemaking in this area. Stay tuned. FortneyScott will continue to monitor whether there will be further substantive revisions to the white collar regulations. If so, it is likely be in the DOL’s regulatory agenda, which we understand will be published in the near future. Should you have any questions, please reach out to your FortneyScott attorney.
Federal contractors are facing immediate changes to implement stepped-up efforts to restrict DEI discrimination, including new mandatory contract clauses, expanded audits, and significant potential legal exposure. These far-reaching changes will impact prime contractors and all tiers of subcontractors. Any employer that is a federal contractor should immediately prepare for these new compliance obligations.
DOL Proposes New Joint Employer Standard In an effort to create a uniform, nationwide standard for determining joint employer status, the U.S. Department of Labor’s Wage and Hour Division will publish a Notice of Proposed Rulemaking (NPRM) in the Federal Register on April 23, 2026. The proposed Joint Employer Rule aims to restore a standard similar to the more business-friendly Trump 1.0 rule. Specifically, the proposed rule clarifies when multiple organizations would be considered joint employers under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. Comments are due within 60 days of the published date, or June 22, 2026. The proposed rule seeks to end nearly a decade of vacillating rules, as both the Trump and Biden administrations had tried promulgating a final rule previously. Those prior attempts created a series of conflicting executive and judicial rulings. As stated by acting Labor Secretary Keith Sonderling, this NPRM is intended to establish a “clear standard on joint employment.” Four-Factor Test The proposed rule modifies the Trump 1.0 standard, which focused heavily on requiring actual control by one company over another to establish joint employment. A prior judicial challenge to that approach was successful, requiring some modification to any new standard introduced thereafter. The proposed rule, therefore, responds by offering a four-factor test that is still heavily weighed on aspects of control. The four factors are whether a company: has the power to hire or fire a worker; supervises or controls a worker’s schedule or conditions of employment to a substantial degree; determines the rate and method of payment; and maintains a worker’s employment records. No single factor is dispositive, and the analysis will focus on the totality of the circumstances. Single National Standard Still a Goal The DOL acknowledged that some circuit courts continue to consider more factors and said the four listed factors were “not exhaustive.” Additionally, other federal agencies and several states have their own joint employer standards, some of which are directed at specific industries. For instance, the NLRB finalized its joint employer rule in late February 2026, with a similarly aligned standard that has some variances from DOL’s proposed standard. A final rule is anticipated soon after the comment period closes. Once issued, the rule may be subject to judicial challenges from interested parties that previously opposed similar regulatory approaches. Contact your FortneyScott attorney for additional information on how to submit comments and/or prepare for its impact on your workforce.
Federal contractors are facing immediate changes to implement stepped-up efforts to restrict DEI discrimination, including new mandatory contract clauses, expanded audits, and significant potential legal exposure. These far-reaching changes will impact prime contractors and all tiers of subcontractors. Any employer that is a federal contractor should immediately prepare for these new compliance obligations. The Federal Acquisition Regulatory Council (FAR Council), which sets government-wide procurement policy and regulation for all federal agencies, has moved quickly to implement Executive Order (EO) 14398 , Addressing DEI Discrimination by Federal Contractors. Specifically, the FAR Council: Issued government-wide implementation guidance and class deviation language for all federal agencies to incorporate a mandatory contract clause, as prescribed in EO 14398, as soon as April 24, 2026, in new solicitations, and by July 24, 2026, for bilateral modifications of existing contracts. The class deviation authorizes agency-wide implementation of new requirements in federal contracts before the Federal Acquisition Regulations (FAR) are amended formally. Requested emergency approval, under the Paperwork Reduction Act (PRA), to allow immediate enforcement of EO 14398’s information collection and reporting requirements. Join FortneyScott for a complimentary briefing on Monday, April 27, at noon ET . Please register here . Contact your FortneyScott attorney for additional information on how to prepare for this new contract clause.
The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: The Directive’s scope and coverage Reporting obligations under the Directive Status of Member State transposition Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance.
Join FortneyScott attorneys on Thursday, June 11, 2026, from 12:00 p.m. to 1:00 p.m. EDT for a complimentary webinar on the European Union (“EU”) Pay Transparency Directive (the “Directive”). To register, please click here . The Directive is driving a significant shift in compensation reporting and transparency across the EU, and requires employers to disclose salary ranges to applicants, share internal pay-setting criteria, and conduct gender pay reporting. With the June 7, 2026, deadline for Member States to transpose the Directive into national law, employers need to understand their compliance obligations and prepare for unresolved implementation questions. In this webinar, FortneyScott attorneys will help U.S. companies with operations in the EU understand the Directive’s requirements, including how they differ from U.S. compliance frameworks. We will discuss best practice lessons that can be adopted from U.S. pay transparency and reporting laws and, importantly, provide key contrasts of the U.S. practices that are not applicable in the EU. Key topics include: · The Directive’s scope and coverage · Reporting obligations under the Directive · Status of Member State transposition · Practical compliance steps employers can take now Who should attend. This webinar is designed for in-house counsel, HR leaders, and senior professionals at multi-national organizations responsible for compensation, benefits, and employment law compliance. Register to attend. To register, please click here .
On Thursday, May 14, the U.S. Department of Labor’s Wage and Hour Division issued a technical amendment removing the salary threshold increases under 29 C.F.R. Part 541, adopted in April 2024. DOL stated that it was following the decisions made by federal courts in November, and that the amendment reinstated the 2019 salary levels applicable to the executive, administrative, and professional exemptions under the Fair Labor Standards Act. The current salary levels are $684 per week for exempt employees and $107,432 annually for highly compensated employees. This change codifies the enforcement posture DOL has maintained since the 2024 rule was invalidated. While this does not alter current compliance obligations, it resolves regulatory inconsistency by restoring the 2019 framework in the regulations and eliminating the 2024 provisions. Employers should confirm that exemption classifications continue to be evaluated against the reinstated 2019 thresholds and remain attentive to any future rulemaking in this area. Stay tuned. FortneyScott will continue to monitor whether there will be further substantive revisions to the white collar regulations. If so, it is likely be in the DOL’s regulatory agenda, which we understand will be published in the near future. Should you have any questions, please reach out to your FortneyScott attorney.
Federal contractors are facing immediate changes to implement stepped-up efforts to restrict DEI discrimination, including new mandatory contract clauses, expanded audits, and significant potential legal exposure. These far-reaching changes will impact prime contractors and all tiers of subcontractors. Any employer that is a federal contractor should immediately prepare for these new compliance obligations.
DOL Proposes New Joint Employer Standard In an effort to create a uniform, nationwide standard for determining joint employer status, the U.S. Department of Labor’s Wage and Hour Division will publish a Notice of Proposed Rulemaking (NPRM) in the Federal Register on April 23, 2026. The proposed Joint Employer Rule aims to restore a standard similar to the more business-friendly Trump 1.0 rule. Specifically, the proposed rule clarifies when multiple organizations would be considered joint employers under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. Comments are due within 60 days of the published date, or June 22, 2026. The proposed rule seeks to end nearly a decade of vacillating rules, as both the Trump and Biden administrations had tried promulgating a final rule previously. Those prior attempts created a series of conflicting executive and judicial rulings. As stated by acting Labor Secretary Keith Sonderling, this NPRM is intended to establish a “clear standard on joint employment.” Four-Factor Test The proposed rule modifies the Trump 1.0 standard, which focused heavily on requiring actual control by one company over another to establish joint employment. A prior judicial challenge to that approach was successful, requiring some modification to any new standard introduced thereafter. The proposed rule, therefore, responds by offering a four-factor test that is still heavily weighed on aspects of control. The four factors are whether a company: has the power to hire or fire a worker; supervises or controls a worker’s schedule or conditions of employment to a substantial degree; determines the rate and method of payment; and maintains a worker’s employment records. No single factor is dispositive, and the analysis will focus on the totality of the circumstances. Single National Standard Still a Goal The DOL acknowledged that some circuit courts continue to consider more factors and said the four listed factors were “not exhaustive.” Additionally, other federal agencies and several states have their own joint employer standards, some of which are directed at specific industries. For instance, the NLRB finalized its joint employer rule in late February 2026, with a similarly aligned standard that has some variances from DOL’s proposed standard. A final rule is anticipated soon after the comment period closes. Once issued, the rule may be subject to judicial challenges from interested parties that previously opposed similar regulatory approaches. Contact your FortneyScott attorney for additional information on how to submit comments and/or prepare for its impact on your workforce.
Federal contractors are facing immediate changes to implement stepped-up efforts to restrict DEI discrimination, including new mandatory contract clauses, expanded audits, and significant potential legal exposure. These far-reaching changes will impact prime contractors and all tiers of subcontractors. Any employer that is a federal contractor should immediately prepare for these new compliance obligations. The Federal Acquisition Regulatory Council (FAR Council), which sets government-wide procurement policy and regulation for all federal agencies, has moved quickly to implement Executive Order (EO) 14398 , Addressing DEI Discrimination by Federal Contractors. Specifically, the FAR Council: Issued government-wide implementation guidance and class deviation language for all federal agencies to incorporate a mandatory contract clause, as prescribed in EO 14398, as soon as April 24, 2026, in new solicitations, and by July 24, 2026, for bilateral modifications of existing contracts. The class deviation authorizes agency-wide implementation of new requirements in federal contracts before the Federal Acquisition Regulations (FAR) are amended formally. Requested emergency approval, under the Paperwork Reduction Act (PRA), to allow immediate enforcement of EO 14398’s information collection and reporting requirements. Join FortneyScott for a complimentary briefing on Monday, April 27, at noon ET . Please register here . Contact your FortneyScott attorney for additional information on how to prepare for this new contract clause.
Employers need to continue to be vigilant in their compliance efforts for DEI and related programs. Here are two quick updates: To assist employers, our most recent DC Insider-Employer Update podcast – EO 14398 and the Procurement Power Play: Compliance, Contracts, and Consequences – provides a great overview of the newest Executive Order and federal contractor compliance. Additionally, late Friday, April 10 th , DOJ announced the first False Claims Act settlement based on DEI claims against IBM for $17 million. Please contact your FortneyScott attorney for more information, and visit our website ( www.fortneyscott.com ) for our recent special webinar .
The Trump Administration continues to push for the elimination of “illegal DEI.” Join FortneyScott attorneys on Thursday, April 9, 2026 at noon EDT to learn the latest developments by multiple federal agencies targeting DEI programs and policies. The webinar will address the key federal agencies’ expansive efforts, including: EEOC , focusing on the agency’s latest challenges to DEI, including expansive investigations of corporate DEI programs, subpoena enforcement litigation and limiting the rights of trans workers; DOJ , including the False Claims Act investigations, and challenges to the constitutionality of EO 14173 in 4th and 7th Circuits; FTC & FCC , highlighting the Mansfield Program, and warning law firms about antitrust compliance, and how DEI can impact regulatory approvals; and, Certification of Compliance , including GSA’s proposed Certification for grantees, and the implications for federal contractors. We also will provide key takeaways for DEI compliance, and steps to mitigate the risks of federal government enforcement actions based on illegal DEI matters. This webinar is the final in a three-part series designed for compliance professions, in-house counsel, HR and inclusion leaders, and other business leaders responsible for labor and employment law compliance.
In this special webinar we will address: Details of the new EO; The specific prohibition on “racially discriminatory DEI activities” in five key areas; The new requirements that add materiality to the contract payments and the expansion of the basis for False Claims Act exposure; New subcontractor management and reporting duties; Penalties and enforcement, including contract cancellation, debarment from future contracts and FCA actions by DOJ; and, The detailed implementation deadline for actions, including the new contract clauses, FAR Council guidance and agencies compliance report to the White House.
In collaboration with FortneyScott and Fragomen law firms, LRQA officially launched TriAge: Age & Eligibility Verification Framework , designed to help employers strengthen hiring and workforce monitoring amid rising age and eligibility verification risks. TriAge goes beyond basic I‑9 compliance by providing a structured set of best practices to verify identity, age, and eligibility across operations. The framework also supports enhanced oversight and allows for independent validation through audits and assessments. We are proud to have contributed to the development of LRQA’s TriAge, a practical tool that helps employers build stronger, more defensible hiring practices.
