The Biden administration on Monday proposed banning government agencies from considering an individual’s current or past pay when determining their salary for federal employment, a move they say will help close the pay gap for women and minorities.
The proposed rule would also require pay transparency measures including requiring federal contractors to disclose compensation ranges in job postings.
“Relying on a candidate’s salary history can exacerbate preexisting inequities in our pay structures and disproportionately impact women and workers of color,” said Shalanda Young, director of the Office of Management and Budget.
By forcing federal agencies to disclose salary ranges and job postings and empower workers to negotiate better pay before accepting a job.
The Biden administration timed the announcement to coincide with the 15th anniversary of the Lilly Ledbetter Fair Pay Act, which President Obama signed into law in 2009. It expanded protections against pay discrimination for women and minorities.
The proposal for federal employees will be published Monday and go into effect 60 days later while the proposal for federal contractors will go into a 60-day public comment period.