Biden administration pushes new approaches to advance pay equity

Tuesday, March 15, was Equal Pay Day in the United States. Equal Pay Day represents how far into the next year women must work to earn what men earned in 2021 based on U.S. Census Bureau data. The Biden administration chose this Equal Pay Day to push new attempts to close the gender pay gap.

President Biden issues EO on prior salary

President Joe Biden issued an “Executive Order on Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency”, directing the Office of Personnel Management to issue a proposed rule that would address the use of salary history in hiring and pay-setting processes for federal employees.

In addition, the Executive Order (EO) directed the Federal Acquisition Regulatory (FAR) Council to work with the U.S. Department of Labor to consider issuing proposed rules to promote economy, efficiency, and effectiveness in federal procurement by enhancing pay equity and transparency for job applicants and employees of federal contractors and subcontractors.

The EO also asks the FAR Council to consider whether the rules should limit or prohibit federal contractors and subcontractors from seeking and considering information about job applicants’ and employees’ existing or past compensation when making employment decisions and whether the rules should include appropriate accountability measures.

OFCCP issues new compensation directive