Job postings would need salary info under proposed rule

Federal contractors would need to provide compensation information in job postings under a proposed rule published in the Federal Register on January 30.

Under the Pay Equity and Transparency in Federal Contracting proposed rule, contractors and subcontractors would need to disclose:

• The salary to be offered to the hired applicant, and
• A general description of benefits and other forms of compensation.

The disclosure would be made in all advertisements for job openings placed by or on behalf of the contractor or subcontractor. It would be required for any position involving work on or in connection with the contract.

Salary history information prohibited

The proposed rule also prohibits contractors and subcontractors from asking about a job applicant’s compensation history.

In addition, they would be prohibited from retaliating against applicants who do not respond to an inquiry regarding pay history.

Which contracts are covered?

The salary information clause required under the rule would be included in all contracts for work performed in the United States and its territories.

This would include contracts relating to acquisitions of commercial products and services.

Notice required, but not posting

The proposed rule would require contractors to provide job applicants with notice of the salary information requirement as part of the job announcement or application process.

The proposed rule does not require contractors to post the notice or display a poster of employee rights, however.

Next steps

Interested parties can submit comments on the proposed rule before April 1, 2024. After comments are considered, the agencies proposing the rule (the Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration (NASA)) will release a final rule and an effective date.

Key to remember: Pay transparency and salary history laws are becoming increasingly common under state laws. The federal government is now proposing that federal contractors also take steps to provide compensation information to applicants.