Construction industry officials are reviewing a new proposal put out by the Biden Administration regarding information pertaining to a worker’s salary history.
As printed in the Federal Register, the Pay Equity and Transparency in Federal Contracting rule would prohibit all federal contractors and subcontractors from requesting information pertaining to an job applicant’s past salary history.
The rule would additionally require those same contractors to post salaries in job listing advertisements.
According to the Federal Register announcement, the proposed rule is animated by the theory that bans on compensation histories would promote the “economy, efficiency, and effectiveness of the Federal contractor workforce.”
Compensation history bans, the announcement continues, have had the effect of decreasing “gender, racial, and ethnic pay gaps by reducing pay secrecy and helping workers negotiate.”
Announcing the salaries being offered in job listings, meanwhile, could “help employers effectively lower recruiting costs, both in terms of direct expenses, such as job advertising costs, and indirect expenses, such as those related to the selection and negotiation process.”
The site Bloomberg Law has raised the possibility that the proposed rule could “present stumbling blocks for contractors when it comes to practical application,” noting that attorneys for federal contractors are currently seeking clarity on the scope of the rule.
In a brief press release, the Associated Builders and Contractors has announced that it will be “analyzing the proposed rule and participating in the regulatory process.”
Comments on the new rule proposal will be accepted by the Regulatory Secretariat Division until April l.
By Garry Boulard
