Under a new proposed regulation from the U.S. Department of Labor's Office of Federal Contract Compliance Programs, employers will be prohibited from discriminating against employees or job applicants who discuss compensation with other employees. This rule applies to federal contractors and subcontractors.
The rule is one in a series of steps by the Department of Labor aimed at lessening the pay differential between men and women and among racial groups. Policies that prohibit employees from discussing compensation may prevent and employee from knowing how his or her salary compares to coworkers. If finalized, the rule will require federal contractors to disclose the nondiscrimination requirement in employee handbooks and provide the provision to job applicants.
Employers with federal contracts should pay attention to their policies on discussion of salary in the workplace.