President Biden’s Administration Issues Executive Order Promoting Pay Equity and Transparency for Federal Contractor Employees

President Biden announced an executive order on March 15, 2022, announcing steps to advance pay equity for employees, including women, employed by government contractors.

Proposed rules may address the use of salary history in the hiring and pay-setting processes for federal employees, consistent with Executive Order 14035 of June 25, 2021 (Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce). The proposed rules may consider limiting or prohibiting federal contractors and subcontractors from seeking and considering information about job applicants’ and employees’ existing or past compensation when making employment decisions with appropriate accountability measures.

This most recent executive order is the latest attempt to raise, regulate, and level the economic pay landscape for federal government contractors. Earlier in the year, President Biden issued an executive order requiring federal contractors to pay $15 per hour for federal contractor employees starting January 30, 2022.

It is recommended that when working with a federal government contractor, you ask about their approach to labor and pay rates on their contracts. There are techniques which can be applied to give federal government contractors the competitive advantage and our AssuredPartners Government Contractor Solutions team is there to help you craft a solution for your client. Contact us today to see how we can help you navigate through this, and future, executive orders and mandates.