Executive Summary: It has long been a professional faux pas to ask someone how much money they make, and some employers prohibit their employees from talking about it. Well, if you are a federal contractor or subcontractor, be prepared to set aside your professional sensibilities, because things are about to change. On April 8, 2014, President Obama issued Executive Order 13665 to address the apparent lack of transparency in employers’ pay policies and practices. To address this issue, Executive Order 13665 amended Executive Order 11246 to include a provision prohibiting covered entities from discharging or discriminating against employees or applicants for inquiring about, discussing, or disclosing their compensation or the compensation of another employee or applicant. In plain terms, Executive Order 13665 would prohibit covered entities from maintaining what are sometimes referred to as “pay secrecy” policies.
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