President Obama’s Executive Order on Pay Transparency Became Effective January 11, 2016

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 An Executive Order prohibiting federal contractors from engaging in retaliation became effective January 11, 2016.  That order provides that federal contractors and subcontractors cannot discharge or otherwise discriminate against employees and job applicants for discussing, disclosing or inquiring about compensation.  In short, covered employers cannot tell employees or applicants:  “Don’t talk to each other about how much you are paid.”

Among other things, the order requires that covered employers adopt a pay transparency policy statement.  The Department of Labor has provided a model statement, which  can be found here:  Pay Transparency.  Contractors must modify their policy manuals, provide employees with an electronic or physical posting of the requirements of the rule, and implement the new “EEO Is the Law” poster, which can be found here:  Poster

The order has many requirements and you should consult with counsel to ensure you are in proper compliance.