The Office of Federal Contract Compliance Programs of the U.S. Department of Labor (“OFCCP”) announced a final rule prohibiting federal contractors and sub-contractors from maintaining policies that discriminate against employees and applicants who discuss, disclose or inquire about compensation. The rules require contractors and sub-contractors to incorporate a provision prohibiting compensation disclosure discrimination in their equal employment opportunity clause which is included in government contracts, employee manuals and handbooks provided to employees and applicants. This new rule applies to employers with supply and service contracts and federally assisted construction contracts of $10,000 or more entered into after January 11, 2016.
Employers that are covered by the new rule have time to comply, but should begin reviewing all written policies now in order to get the necessary changes made in a timely manner. The final rule is available at: http://www.dol.gov/ofccp/PayTransparency/ .