A reminder that we are seeking industry feedback on the proposed rule requiring a prohibition on requesting salary history of applicants, as well as requiring firms to disclose compensation ranges for open positions.
We are requesting your firm's comments by Friday, March 1.
BLUF: Compensation history bans, and salary range disclosure requirements are relatively new policies. As of August 2023, 22 states have enacted compensation history bans and 10 states have enacted a pay transparency law with their ban. Despite the perceived benefits of these policies, including reducing turnover, increasing the quality of applicants, and streamlining the hiring process, it is believed that absent a government-wide policy, contractors cannot reasonably be expected to adopt these policies with sufficient uniformity.
Comments and your firm's concerns can be left here, or by contacting me directly at dhilton@acec.org.
Many of the requested areas of questioning accompanying the proposed rule remain vague, please feel free to share your general concerns as they are understood to be impacted by this proposed rule with me directly. Specifics of the proposed rule are as follows: The proposed rule would prohibit contractors and subcontractors from seeking an applicant's compensation history, directly or indirectly, and considering compensation history when making employment decisions. Consideration of compensation history is prohibited even if the applicant provided the information voluntarily with no prompting. Covered employers would also be prohibited from retaliating against applicants for refusing to provide compensation history.The proposed rule would require contractors and subcontractors to disclose the compensation to be offered for the position in all job opening advertisements placed by the contractor or on their behalf. The disclosure must include the salary or wages, including ranges if applicable, that the contractor believes, in good faith, they will pay for the position. The disclosure must also include a general description of the benefits and any other forms of compensation.The proposed rule would require contractors and subcontractors to provide written notice of FAR rights to applicants in the job announcement or as part of the application process. The notice must include a description of the rule and how to submit a complaint regarding alleged noncompliance. The complaint process allows applicants to submit a complaint to the contracting agency point of contact within 180 days of an alleged violation. There are no specific remedies in the proposed rule, but the contracting agency may "take action as appropriate."
Dan Hilton
Director of Procurement Advocacy & International Affairs
The American Council of Engineering Companies
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