FAR Council proposes new pay transparency requirements

On January 30, 2024, the Biden administration published a proposed regulation to prohibit federal contractors and subcontractors from using job applicants’ prior salary history when setting pay and to require federal contractors to disclose the expected salary range in job postings. Comments on the proposal are due by April 1.

The proposed rule would:

• Prohibit federal contractors and subcontractors from seeking and considering information about job applicants’ compensation history when making employment decisions about personnel working on or in connection with a government contract; and
• Require federal contractors and subcontractors to disclose the compensation offered to the hired applicant for any position to be performed on or in connection with a contract in all advertisements for job openings involving work on or in connection with a government contract placed by or on behalf of the contractor or subcontractor.

Under the proposed rule, contractors must notify applicants of their rights and prohibitions with lengthy prescribed language, including a space for the central point of contact at the federal agency that awarded the contract receiving complaints alleging contractor noncompliance. Where a point would support multiple agencies, “complaints should copy the central collection point of all known agencies to be supported by the applicant’s position.” This requirement is both unduly burdensome and not particularly helpful for applicants.