On January 30, 2024, The Federal Acquisition Regulatory (FAR) Council released a proposed rule with four key components – a compensation history ban, prohibiting federal contractors and subcontractors from considering a candidate’s compensation history when determining pay; a requirement to disclose pay rate and other benefits in the job posting; a notice provision for applicants; and a requirement for these obligations to flow down to subcontractors. There is a 60-day comment period for this proposed rule.
TCWGlobal will continue to monitor this to ensure that our Clients stay up to date on the obligations that may impact them when the rule is finalized.
With pay transparency now being looked at for federal contractors and with a growing number of states in the past few years enacting laws targeting pay equity and transparency practices, it is clear this legal trend is one all companies need to continue to monitor.
Not paying attention to pay equity and pay transparency laws in your area can lead to costly penalties. For example, in New York, where the pay transparency regulations require the salary range to be included in job postings for worker in the state and remote workers reporting into a supervisor within New York State, violations incur a penalty of a minimum of $1,000.
If you’re in or have workers remotely working in Hawaii, California, Colorado, or Massachusetts, you’ll want a partner that can help ensure you’re meeting the pay equity and transparency requirements specific to those states.
As this transparency trend continues to expand, TCWGlobal will stay up to date and help you ensure that you’re meeting those obligations. For more information on how the TCWGlobal team can help you with your pay equity and transparency compliance, reach out to us at 858-810-3000 or hello@tcwglobal.com
More information on Pay Transparency in the US can be found here: https://www.tcwglobal.com/blog/what-is-pay-transparency-and-is-your-company-ready
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