On January 11, 2016, the final rule issued by the Office of Federal Contract Compliance Programs (OFCCP) amending regulations1 to implement President Obama’s Executive Order 13665, the so-called “Pay Secrecy” or “Pay Transparency” order, took effect. That order, issued in April 2014, amended Executive Order 11246 to bar federal contractors and subcontractors from retaliating or discriminating against an employee or applicant for inquiring about, discussing, or disclosing his or her own compensation, or the compensation of any other employee or applicant. While the regulations apply only to federal contracts or subcontracts in excess of $10,000 that are entered into or modified on or after January 11, 2016, employers that currently are or may be federal contractors would be well served to become familiar with the regulations’ requirements and begin preparing for them now. The Pay Transparency executive order and implementing rule have been touted as part of the Administration’s efforts to ensure equal pay for equal work, an objective President Obama again cited during his recent State of the Union Address.
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