The Biden administration, in a bid to enhance pay equity across genders and races, is set to mandate companies with federal contracts to reveal expected salary ranges in their job adverts. This is part of the administration’s wider approach aimed at dealing with disparities in compensation across race and gender.
Alongside this, another significant step is being introduced that prevents federal agencies and US contractors from factoring in a job applicant’s previous compensation during determination of their starting pay. This move targets to diminish the prevalent practice of setting pay scales based on an applicant’s salary history, which critics say perpetuates wage discrimination.
Emphasizing the importance and effect of these directives, President Joe Biden opined, “These new actions adopt commonsense policies that will help pay millions of workers fairly, close gender and racial wage gaps and yield tangible benefits for the federal government and federal contractors…”
These changes come hand in hand with additional efforts to limit contractors’ usage of salary history and a commitment from the Labor Department subagency to issue new anti-bias guidance. Building on previous measures aimed at enhancing equity, these moves signal a continued emphasis from the Biden administration on ensuring pay parity and fairness in the workplace.
Full details of these policy changes can be found in the original article on Bloomberg Law.