by Emily L. Bristol
The comment period for a new rule prohibiting federal contractors from having pay secrecy policies will come to a close on December 16.
The U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) regulation, “Government Contractors, Prohibitions Against Pay Secrecy Policies and Actions,” would prohibit contractors from taking action against applicants or employees because they were discussing, inquiring about, or disclosing their compensation or the compensation of another applicant or employee. The proposed regulation also includes:
- Definitions for key terms such as “compensation,” “compensation information,” and “essential functions”;
- An obligation to disseminate a new OFCCP-mandated nondiscrimination provision to employees and applicants; and
- A defense for the discipline of an employee, such as an HR employee, who improperly discloses employee pay absent a separate legal obligation to disclose the information.