Office of Federal Contract Compliance Programs, OFCCP,  announced this morning the release of the anticipated final rule implementing Executive Order 13665, commonly referred to as the Pay Transparency Executive Order.  The Rule is expected to be published in the Federal Register on September 11, 2015 and will take effect 120 days from publication –  January 11, 2016. The final rule applies to employers that enter into new, or modify existing, federal contract(s) after January 11, 2016 in excess of $10,000. The final rule amends Section 202 of Executive Order 11246 which already prohibits employment discrimination by federal contractors, and according to OFCCP “helps level the playing field for women and people of color and provides employers access to a diverse pool of qualified talent” by contributing “to building an economy that works for everyone” and helping to “make the contractor workforce more efficient.”

Under the final rule employers are required to update their nondiscrimination policies to include a proscribed provision specifically addressing pay transparency.  This language must also be made available to applicants. We are in the process of parsing through the 118 page final rule and will provide additional insights and details soon.