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Federal Contractor Policy

Pay Transparency (Executive Order 13665)

Prohibits federal contractors from discriminating against employees and applicants who ask about or discuss compensation. This rule applies to banks that are federal contractors under Executive Order 11246 (Affirmative Action).

Requirements Include:

  1. Pay Transparency Policy Statement: This cannot be modified and must be included in existing employee handbooks or manuals and the contractor’s current regular means of communicating with employees and applicants and posted either electronically or conspicuously where applicants and employees can see it.
  2. The final rule requires that the equal opportunity clause included in covered federal contracts and subcontracts be amended to include that federal contractors and subcontractors must refrain from discharging, or otherwise discriminating against, employees or applicants who inquire about, discuss, or disclose their compensation or the compensation of other employees or applicants.
    Example statement: “The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee’s essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor’s legal duty to furnish information.”
  3. For the full regulation visit, https://www.dol.gov/ofccp/PayTransparency.html