Employment & Labor Insider

Although the Office of Federal Contract Compliance Programs has not announced a requirement that contractors update their Pay Transparency Nondiscrimination Provision, the agency has updated its required posters and language. 

The new versions do not contain substantive changes; they merely add the regulatory citation to the end of the notice (41 C.F.R. 60-1.35(c)). But because the regulations require federal contractors to use the posting and language provided by the OFCCP, contractors should update all of their existing postings and handbook policies.

For those who may be new to the federal contracting world (or those who may have just overlooked this requirement), an explanation may be in order. The pay transparency rule prohibits contractors covered by Executive Order 11246 from discriminating or retaliating against employees for discussing, disclosing, or inquiring about their compensation.  This is not a new prohibition for employers; the National Labor Relations Act generally prohibits the same conduct in many circumstances. For contractors, however, there is the additional requirement to actually post and disseminate the prohibition—hence, the Pay Transparency Nondiscrimination Provision. Contractors must post the provision electronically or in a conspicuous place that is accessible to all employees and applicants. Contractors must also include the provision in their employee handbooks.

Again, even though there has not been a formal announcement from the OFCCP mandating the new versions, we recommend that contractors replace the old poster and handbook policy as soon as practical.