April 9, 2014 •
President Signs Executive Order to Curtail Compensation Discrimination
Yesterday President Barack Obama signed an executive order to prevent federal vendors from prohibiting their employees from inquiring about, disclosing, or discussing their compensation with fellow workers.
The April 8 order, titled “Non-Retaliation for Disclosure of Compensation Information,” is intended to discover, remediate, and help eliminate compensation discrimination.
The president’s order justified this prohibition by stating, “Federal contractors that employ [compensation discrimination] are subject to enforcement action, increasing the risk of disruption, delay, and increased expense in Federal contracting. Compensation discrimination also can lead to labor disputes that are burdensome and costly.”
The order takes effect immediately and will apply to new contracts entered into once the Department of Labor creates rules promulgating the order.
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