posted on: Friday, September 11, 2015
Today (September 10, 2015), the Department of Labor issued its final rule, implementing Executive Order 13665 (the “Order”), which prohibits federal contractors from firing or otherwise disciplining employees or job applicants for discussing their pay or the pay of their co-workers. The final rule goes into effect on January 11, 2016.
The final rule comes after the Department of Labor received 6,524 comments from stakeholders. Among other things, the final rule amends the equal opportunity clauses in Executive Order (“EO”) 11246 to afford protections to workers who discuss pay; codifies certain defenses for contractors; and adds employee notice provisions. The new regulation’s key points are discussed below.
Applicability
The final rule applies to both federal contracts and subcontracts “entered into or modified on or after [January 11, 2016] that exceed $10,000 in value.” Modification of a contract includes changes to any term or condition of the contract, as well as extensions and renewals of existing contracts.