OFCCP Issues Final Rule Prohibiting Pay Secrecy Policies and Actions By Federal Contractors
September 17, 2015Final Rule last week implementing Executive Order 13665 (entitled Non-Retaliation for Disclosure of Compensation Information). Executive Order 13665 amends Executive Order 11246 by prohibiting federal contractors from discharging or discriminating against employees or applicants who inquire about, discuss, or disclose their own compensation or the compensation of another employee or applicant. The Final Rule was published in the Federal Register on September 11, 2015, and goes into effect on January 11, 2016. The Final Rule affects covered federal contractors who enter into or modify existing covered federal contracts greater than $10,000, on or after January 11, 2016, and includes employees and job applicants who work for, or apply to work for, a company that has a covered contract with the Federal Government. The Final Rule implements Executive Order 13665 by:
- Revising the “equal opportunity clause” to include the new nondiscrimination provision, which is required in all qualifying federal contracts, federally assisted construction contracts, subcontracts, and purchase orders;
- Requiring federal contractors to incorporate an OFCCP-prescribed nondiscrimination provision into existing employee manuals and handbooks; and
- Requiring federal contractors to disseminate the nondiscrimination provisions to employees and job applicants.