Advancing Economy, Efficiency, and Effectiveness in Federal Contracting

Mar 18, 2022
Mar 18, 2022

Summary

Aims to stop unfair pay by considering rules that prevent federal contractors from asking about a person's past salary when hiring.

What problem does this solve?

Unfair pay practices can hurt the economy and the government's ability to get good work done. This order tells a council to think about making new rules to stop federal contractors from asking about past pay, which helps break the cycle of low salaries.

What does this order do?

Proposes new rules for federal contractors
Directs the Federal Acquisition Regulatory Council to consider creating rules that promote pay equity and transparency for employees of federal contractors.
Considers banning salary history questions
Requires the council to specifically consider rules that would stop federal contractors from asking job applicants about their past or current salary.
Establishes a policy against pay discrimination
Sets the official policy of the administration to get rid of unfair pay practices that harm the effectiveness of government work and purchasing.

Who does this affect?

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

What is the real world impact?

Promotes fair pay for workers
Helps to close the wage gap by preventing past, potentially discriminatory salaries from determining future pay for employees of federal contractors.

When does this start?

This order went into effect on March 15, 2022.