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Ban on Salary History Inquiries to Expand to Federal Contractors

Salary History Bans have made their way around the country at the state and local levels for the past decade. Now, one will make its way to federal contractors.

On March 15, 2022, President Biden issued an Executive Order  (“Executive Order on Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency”), directing the Federal Acquisition Regulatory Council to issue a proposed rule that:

  • “enhances pay equity and transparency,” and
  • limits or prohibits federal contractors from inquiring about (and considering) salary history information.

 

While the Order does not mandate specific restrictions, various state and local laws can give federal contractors an idea of what to expect next. At a minimum, the new rule will likely prohibit inquiring about salary history on job applications. Other considerations may include whether federal contractors can rely on voluntary salary history disclosures and whether there will be a salary range requirement (similar to the Colorado and New York City laws).

Federal contractors should consider reviewing their applications and hiring policies to determine if any changes will need to be made.

For more information on Salary History and other laws, and whether they affect your state, visit our Resource Guide at the Hire Image Resource Library.

Hire Image will continue to keep you updated on the status of the proposed rule.

Please contact us if you have any questions about your own background screening practices.

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