Government Quietly Abandons Pay Transparency Rules for Federal Contractors
Published Date: 1/8/2025
Proposed Rule
Summary
The government is pulling back a proposed rule that would have made federal contractors stop asking about job applicants' past pay and require them to share salary info in job ads. This change would have affected companies working with the government and aimed to boost pay fairness and openness. Since the rule is withdrawn as of January 8, 2025, no new pay transparency rules will take effect now, so no immediate money or hiring changes are coming.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Federal contractor pay-rule withdrawn
If your company works as a federal contractor or subcontractor, the proposed rule published January 30, 2024 that would have banned asking job applicants about prior pay and required salary disclosures in all job ads for work on or in connection with a Government contract was withdrawn on January 8, 2025. Because the rule is withdrawn, contractors and subcontractors will not be required to adopt those hiring-ad or pay-history restrictions now.
Job-applicant pay transparency not enacted
If you apply for jobs that involve work on or connected to a Government contract, the proposed protections — banning employers from seeking compensation history and requiring pay to be listed in job ads — will not take effect because the proposal was withdrawn on January 8, 2025. That means applicants will not receive those new pay-history bans or mandatory pay disclosures now.
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