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USA Federal Legislation Simplified

Non-Retaliation for Disclosure of Compensation Information

E.O. 13665
Apr 11, 2014
E.O. 13665
Apr 11, 2014

Summary

Stops companies with federal contracts from punishing workers who ask about, share, or talk about how much they or others get paid.

What problem does this solve?

When companies stop workers from talking about their pay, it is hard to find out if some people are being paid unfairly. This order makes it illegal for companies with government contracts to punish workers for discussing pay, which helps find and fix unfair pay.

What does this order do?

Protects employees who discuss pay
Forbids federal contractors from firing or punishing employees or job applicants for asking about, discussing, or sharing their own pay or another person's pay.
Creates an exception for certain jobs
Specifies that the rule does not apply to employees, like those in human resources, who have access to pay information as part of their job, unless they are sharing it as part of a formal complaint or investigation.
Requires new rules to be created
Orders the Secretary of Labor to create and propose new rules within 160 days to put this order into practice.

Who does this affect?

  • Employees of federal contractors
  • Job applicants for federal contractors
  • Federal contractors

What is the real world impact?

•
Promotes fair pay
Encourages pay equity by allowing employees to discuss their salaries without fear. This transparency makes it easier to identify and challenge pay discrimination, especially for women and minorities who are often paid less for similar work.
•
Increases government oversight of contractors
Adds a new rule for companies that want to do business with the federal government. Some businesses may see this as the government interfering with their private pay policies and creating potential for conflict among employees.

When does this start?

The order is effective immediately, but its rules will apply to new government contracts after the Department of Labor finalizes them. The order sets a deadline for these new rules to be proposed.
Deadline for new regulations
The Secretary of Labor must propose new rules to carry out this order within 160 days of April 8, 2014.