Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency

This executive order directs the Federal Acquisition Regulatory Council to consider issuing proposed rules that would limit or prohibit federal contractors from using job applicants' salary history in employment decisions, aiming to promote pay equity and transparency in federal procurement. It parallels anticipated OPM rules for federal employees and requires consideration of accountability measures for contractors and subcontractors.

Federal Register Open PDF 87 FR 15315

Key directives

Federal Acquisition Regulatory Council shall consider issuing proposed rules to promote pay equity and transparency for federal contractors and subcontractors
Specifically consider limiting/prohibiting contractors from seeking and considering applicants' and employees' existing or past compensation in employment decisions
Consider inclusion of appropriate accountability measures in any such rules
Consult with Secretary of Labor and other agency heads as appropriate

Who is ordered

Timeline

Immediate

EO issuance; Federal Acquisition Regulatory Council directed to begin consideration of proposed rules

Near term (90d)

Consultation process with Secretary of Labor and agency heads; development of proposed rule considerations

Long term

Potential issuance of proposed rules (no deadline specified); implementation of pay equity restrictions on federal contractors if rules finalized

Risks & tensions

No binding deadline for rulemaking — 'consider issuing' language creates uncertainty about whether rules will actually be proposed
Scope limited to 'consideration' rather than mandate to issue rules, reducing immediate structural impact
Vague 'appropriate accountability measures' leaves enforcement mechanism unspecified
Potential tension between pay equity goals and contractor compliance burdens; may affect competition for federal contracts