Joe Biden to Ban Salary History Use in Federal Employment Offers, Require Contractors to Reveal Pay Ranges in Job Ads

By Jace Dela Cruz

Jan 30, 2024 07:24 AM EST

The administration of President Joe Biden plans to require companies with federal government contracts to disclose compensation ranges in job postings.

According to Bloomberg, it is part of the administration's broader effort to improve race and gender pay equity.

President Biden Speaks On His Bidenomics Economic Plan In Raleigh, North Carolina — (Photo : Eros Hoagland/Getty Images))
RALEIGH, NORTH CAROLINA - JANUARY 18: U.S. President Joe Biden speaks on his economic plan for the country at Abbot's Creek Community Center on January 18, 2024 in Raleigh, North Carolina.

Administration of Joe Biden to Prohibit Contractors, Federal Agencies to Use Job Applicant's Compensation History

Aiming to reduce pay secrecy to help workers negotiate, the Biden administration also plans to prohibit federal contractors and federal agencies from using a job applicant's compensation history to determine their starting pay.

"Today, my Administration is taking new actions to advance pay equity for the federal workforce and employees of federal contractors," Joe Biden said in a statement.

"These new actions adopt commonsense policies that will help pay millions of workers fairly, close gender and racial wage gaps, and yield tangible benefits for the federal government and federal contractors. These policies are good for workers, our economy, and for families," the president added.

The announcement coincided with the 15th anniversary of the Lilly Ledbetter Fair Pay Act, a law signed during the Obama administration that expanded essential protections against pay discrimination.

Open for Public Comment for 60 Days

The Office of Personnel Management is scheduled to publish a final rule on the regulation for federal employees on January 30, and it will go into effect 60 days later.

On the other hand, the Federal Acquisition Regulatory (FAR) Council will release a proposed rule for federal contractors that will be open for public comment for 60 days.

The FAR Council will publish the proposed rule that would also institute pay transparency measures that oblige contractors to disclose compensation ranges in job postings on Monday, The Hill reported.

Sectors