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Executive Order to Promote Pay Equity, Transparency in Federal Procurement

1 min read

President Biden has signed an executive order that will require the Federal Acquisition Regulatory Council to consider proposing rules to improve pay equity and transparency for employees and job applicants of federal contractors and subcontractors to promote economy and efficiency in federal procurement.

The council will consider whether proposed rules should limit government contractors and subcontractors from considering information on past or existing salary of job applicants and employees in employment decisions, the White House said Tuesday.

The council will also assess the possible inclusion of accountability measures in the proposed rules, according to the EO.

The Department of Labor on Tuesday released a directive to ensure that federal contractors comply with their obligation to carry out pay equity audits to identify and address barriers to equal pay in their employment practices.

“The Office of Federal Contract Compliance Programs’ directive on pay equity audits is an important measure that will help employers address and prevent pay inequality,” said OFCCP Director Jenny Yang.

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