White House and Federal Acquisition Regulation Council Support Potential Rule Change
In January, 2024, the White House announced a potential rule change that would address transparency concerns for federal contractors and subcontractors. Simultaneously with the White House disclosure, the Federal Acquisition Regulations Council published a “Notice of Proposed Rulemaking” specifically addressing salary history bans and pay transparency for as they relate to applicants and employees of all federal contractors and subcontractors. The proposed federal rule replicates the actions that a number of state and municipal entities, including agencies in New York, New Jersey and California, have taken in recent months.
The proposed rules would:
- Mandate that all federal contractors and subcontractors include anticipated salary ranges for any jobs or positions “on or in connection with” government contracts, including subcontracts. The disclosure, though, must include more than just salary. It needs to be transparent about what benefits will be provided, as well as any other potential forms of compensation, such as bonuses, overtime pay and commissions.
- Ban any attempts by federal contractors and subcontractors to obtain, solicit or consider an applicant’s prior compensation when making hiring decisions or establishing rates of pay for employees who provide any services “on or in connection with” a government contract or subcontract
- Require that the disclosures set forth in the rule be an integral and visible part of either the job announcement or the job application process
It’s important to note that the language of the rule clearly extends its application beyond direct employees, as the phrases “on or in connection with” suggests.
Thus far, the rule is only proposed and has no legal effect. The law office of Stephen D. Hans & Associates will continue to monitor this matter and help keep businesses informed of any developments.
Let Stephen Hans & Associates Handle Your Employment Law Concerns
At Stephen Hans & Associates, our attorneys are glad to answer your questions and provide legal advice. Years of experience have provided us with extensive knowledge regarding employment law. We have successfully represented many employers throughout the greater New York City area in litigation involving workplace disputes. Our offices are conveniently located in Long Island City with easy access from Manhattan.