A new requirement for Federal Contractors promotes pay transparency and gender and race equity takes effect in 2016 and will require the replacement of the Federal EEO poster.[wc_divider style=”dotted” line=”single” margin_top=”” margin_bottom=””]
President Obama issued Executive Order 13665 in 2014 to protect workers on federal contracts from workplace discrimination against workers and job applicants who share information about their pay and compensation.
What Will Change for Federal Contractors with Pay Transparency?
The OFCCP released the Final Rule, which will take effect January 11, 2016, and covers Federal Contractors with federal contracts valued at $10,000 or more.
The Final Rule amends the Equal Employment Opportunity order (EO 11246) to prohibit contractors from discharging or discriminating against any employee or applicant for employment because the employee or applicant inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant – except if the employee’s ‘essential job function’ gives the worker access to compensation information or if the worker’s function is to protect the privacy of personnel records.
Federal Contractors covered by the Final Rule will need to provide the EEO is the Law Poster Supplement to employees and applicants using employee manuals or handbooks, and either electronically or by posting the prescribed provision in conspicuous places beginning January 11, 2016.
The content from the supplement will be integrated with the “EEO is the Law” poster at some point in the future, yet to be determined by the Department of Labor.
GovDocs Compliance Counsel Anne Jakala, Esq. reminded employers that if the display the current EEO is the Law poster, they are in compliance until the Jan. 11 deadline.
“Remember that it is only effective for new or modified federal contracts on or after January 11, 2016 and not for current contracts. Currently, Federal Contractors are required to post the OFCCP EEO is the Law Poster. At this time, this poster is shared with the EEOC’s EEO is the Law Poster (which is required to be posted by private employers). Therefore, at this time, they are the same poster.”
What Can Federal Contractor Employees Discuss About Pay?
Unless the worker is excepted based on essential job function, employees on federal contracts have the right to discuss compensation as defined in the Final Rule:
“…any payments made to, or on behalf of, an employee or offered to an applicant as remuneration for employment, including but not limited to salary, wages, overtime pay, shift differentials, bonuses, commissions, vacation and holiday pay, allowances, insurance and other benefits, stock options and awards, profit sharing, and retirement.”
Intranet Labor Law Postings for Remote Workers
According to the Final Rule, the OFCCP estimates that 99 percent of 500,000 Federal Contractor companies will post the required information electronically while only 1 percent will post the provision on employee bulletin boards.The OFCCP allowance for electronic postings is part of a larger trend among agencies who are recognizing the increase of remote workers (in other words, employees who work at home or offsite but who are still linked to company networks).
GovDocs has developed our Intranet Posting Program to help large employers provide the latest required postings for all employees – directly from the company intranet.
The GovDocs Intranet Poster Program automatically updates electronic labor law postings on your company’s intranet site securely. While other electronic posting update services force customers to manually download files every time a posting change affects their subscribed locales and then distribute them or post them to an intranet, delivers the most current GovDocs’ electronic files to your intranet in real time via a secure access link with no manual steps for your department.