CONTRACTORS MUST DISCLOSE SALARY RANGES FOR JOB OPENINGS
A new proposed rule supported by the White House will require contractors to post salary ranges “for any position to perform work on or in connection with the contract…”. In addition, contractors and subcontractors will be prohibited from seeking and considering information about job applicants’ non-federal compensation history when making employment decisions about personnel working on or in connection with a government contract. The proposed rule was highlighted in a White House press release issued January 29th. The key phrase for many contractors will be what “in connection with a contract” means. While companies that sell mainly or exclusively to the federal government will likely have to post ranges for all positions, commercial item and service companies that conduct most of their business outside of the government market will have to obtain guidance on how far the definition of “connection” goes. The agency that manages a company’s specific contract will handle complaints of noncompliance unless they deal with discrimination. The Department of Labor’s Office of Federal Contract Compliance (OFCCP) will continue to have jurisdiction over these claims. The thrust of the proposed rule is to bring more transparency to federal contractor positions and bring federal rules more in-line with those of approximately 20 states that already have similar requirements. While contractors may have used previous salary information as one guide point on what to offer a prospective new hire, companies likely have an array of other tools available to assist in that task. Experienced contractors likely have a good sense of market conditions and understand what it takes to hire and attract talented workers. Comments on the proposed rule are due at the end of March. See the proposed rule here for more: https://public-inspection.federalregister.gov/2024-01343.pdf