The Department of Labor issued a proposed rule that, if finalized, would require federal contractors to report to the government information on employees’ compensation. The rule intended to stop unequal pay issues and was drafted as required by a Presidential memorandum.
The proposed rule would apply to federal contractors and subcontractors who file an EEO-1 report, have more than 100 employees, and have a contract of $50,000 or more with the government for at least 30 days. These groups would have to provide information, including:
- number of workers within a specific EEO-1 job category by race, ethnicity and sex;
- w-2 wages for all workers on the job category by race, ethnicity and sex;
- hours worked defined by race, ethnicity and sex.
The information is intended to help the government identify contractors who have discriminatory pay practices. Employers who work on federal contracts should review their compensation practices and gear up for reporting salaries.