OFCCP Issues Final Pay Transparency Rules
10/01/15
Author: DeadreDiggs/Thursday, October 1, 2015/Categories: Bulletin News
Summary
Overview: In 2014, President Obama issued Executive Order 13665, with the intent of promoting pay transparency and 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.
Effective Date: 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
Coverage: Federal Contractors
The Details
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The Final Rule amends the EO 11246 implementing regulations by:
- Requiring that certain information be included in covered federal contracts and subcontracts. The Final Rule requires that the equal opportunity clause included in covered federal contracts and subcontracts be amended to include that federal contractors and subcontractors must refrain from discharging, or otherwise discriminating against, employees or applicants who inquire about, discuss, or disclose their compensation or the compensation of other employees or applicants. An exception exists where the employee or applicant makes the disclosure based on information obtained in the course of performing his or her essential job functions;
- Requiring that federal contractors incorporate aprescribed nondiscrimination provisioninto 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.
Read the Final Rule and Executive Orders
Readthe Final Rule
ReadExecutive Order 13665
ReadExecutive Order 11246
Additional Resources
ReadFrequently Asked Questions by Employers and Employees
View the RequiredNondiscrimination Provisionfor Employer Manuals, Handbooks, and Postings
Print the"EEO is the Law"Poster Supplement
ReadKnow Your Rights Fact Sheet
ReadOFCCP Pay Secrecy Fact Sheet
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