The proposed rule would also institute pay transparency measures that require contractors to disclose compensation ranges in job postings.
“Relying on a candidate salary history can exacerbate pre-existing inequality in our pay structures and disproportionately impact women and workers of color,” Shalanda Young, director of the Office of Management and Budget, told reporters.
The moves are part of an effort for federal employers to disclose expected salary ranges in job postings and reduce pay secrecy to help workers negotiate.
The Biden administration marked the 15-year anniversary of the
Lilly Ledbetter Fair Pay Act with the announcements. The law, signed during the Obama administration, expanded protections against pay discrimination.
The regulation for federal employees will be pushed Jan. 30 and go into effect 60 days later. The proposed rule for federal contractors will go into a public comment period for 60 days.
The Hill’s Alex Gangitano has more here.