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Proposed Rules for Federal Contractors Subject to FAR on Pay Equity

The Federal Acquisition Regulation (FAR) Council proposed rule, approved by the Office of Management and Budget (OMB) on January 11, 2024, may change how covered federal contractors/subcontractors attract and retain talent by implementing salary history prohibitions and requiring the disclosure of pay ranges.  

The proposed rule is anticipated to be published in the Federal Register at some point in February 2024, with comments being accepted through April 2024, after which a final rule will be published and implemented after OMB review. 

Next Steps 

No action is currently required by federal contractors/contractors, but if approved, the FAR rules governing federal government procurement policies and procedures in the United States will be revised to incorporate the provisions of the final rule. In anticipation of the proposed rule, it is recommended that employers review their contracts to determine if they will be covered, and if so, consider revising job postings to include compensation ranges without relying on salary history inquiries, and training hiring managers and recruiters on the revised procedures. Of note, not all federal contractors/subcontractors are covered by FAR. To determine whether your organization will be covered, you will need to review each contract to see if it contains specific FAR clauses that apply to the contract. 

HR Works will continue to monitor this topic and provide updates as they become available. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.