AGC Urges OFCCP to Simplify Compliance Requirements of Pay Secrecy Rule

On Dec. 16, AGC submitted comments to OFCCP in response to its proposed rule prohibiting federal contractors from retaliating against employees who disclose compensation. The rule is in response to Executive Order 13665, signed by President Obama in April 2014. It applies to federal and federally-assisted contracts and subcontracts, as it amends Executive Order 11246.

 

The proposed rule does not compel employees to discuss compensation, nor require employers to publish or disseminate pay data, but protects the rights of employees who voluntarily disclose their own compensation, or that of another employee or applicant. Employees with access to compensation information for other employees or applicants as part of their essential job function are excluded from protection, unless disclosure is required as a result of an investigation or with regard to discussing their own compensation. AGC’s comments ask OFCCP to implement compliance requirements that are simple and non-burdensome for contractors. Specifically, AGC requests that OFCCP eliminate the policy dissemination and posting requirements required for applicants, as well as any management training requirements suggested in the proposed rule. Instead, AGC asks OFCCP to consider contractors in compliance when the revised Equal Opportunity Clause (EO clause) is included in covered subcontractors contracts and purchase orders, and by posting a revised Federal Poster for employees.

The proposed rule also obligates prime contractors to enforce the new EO Clause as directed by OFCCP. As a result, AGC’s comments ask OFCCP to insert language into the final rule that will eliminate risks to prime contractors and to project efficiency when subcontractors and vendors are removed for noncompliance with the EO.