On Equal Pay Day, March 15, President Biden issued an executive order focused on “Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency.” The EO directs the Federal Acquisition Regulatory Council (FAR) to consider issuing proposed rules to enhance pay equity and transparency for job applicants and employees by limiting or prohibiting federal contractors and subcontractors from “seeking and considering information about job applicants’ and employees’ existing or past compensation when making employment decisions.” While this EO doesn’t immediately change requirements for contractors, it is likely the FAR will impose new pay equity and transparency requirements on contractors and subcontractors in the near future.
