Important New Requirements for Federal Contractors

Effective January 11, 2016, federal contractors are required to amend their handbook language and to post a supplemental poster regarding the new regulations on pay transparency. The OFCCP has issued regulations prohibiting federal contractors and subcontractors from maintaining pay secrecy policies and from discriminating against employees and applicants who discuss, disclose, or inquire about compensation. The regulation implements Executive Order No. 13665 and applies to covered federal contracts entered into or modified after January 11, 2016. Those contracts must include specific language regarding pay transparency, but contractors can include the nondiscrimination provision by reference in the EEO clause that they use for subcontracts and purchasing orders, instead of including the full language of the executive order’s EEO clause. Contractors need to either reference the clause in purchasing orders and subcontracts or include the full language.

Although the change to contract language applies only to new contracts, the posting requirements and supplemental handbook language are effective now. If you are a federal contractor and would like a copy of the supplemental poster or language that you can use to comply with the policy requirements, contact any of the labor and employment attorneys at Skoler, Abbott & Presser, P.C.

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