The Biden administration announced two new steps on Monday to prevent the use of pay history by federal employees and contractors.
The Office of Personnel Management has issued a new policy for agencies that prohibits the use of salary history in determining pay for government positions.
The government released a proposed rule for federal contractors that would prevent them from soliciting or evaluating information about job applicants’ previous remuneration when making employment choices.
The new rule, which the Federal Acquisition Regulatory Council will publish on Monday, would also establish pay transparency measures, requiring contractors to reveal salary ranges in job ads.
“Relying on a candidate’s salary history can exacerbate pre-existing inequality in our pay structures, disproportionately impacting women and workers of color,” Shalanda Young, director of the Office of Management and Budget, told reporters.
The regulation and proposed rule are both part of an attempt by government companies to reveal estimated wage ranges in job advertising and decrease pay secrecy to assist workers in negotiating.
The news came as the Biden administration marked the 15th anniversary of the Lilly Ledbetter Fair Pay Act. The measure, signed during the Obama administration, strengthened crucial pay discrimination provisions.
“Despite this progress, the fight for equal pay persists.” Women workers are still paid 84 cents for every $1 earned by males, and the discrepancies are significantly higher for many women of color. Today, my Administration is taking new steps to advance pay parity for federal employees and contractors,” President Biden stated in a statement.
The regulation for government employees will be pushed until January 30 and will take effect 60 days later. The proposed rule for federal contractors would be open to public comment for 60 days.