By: Brittney Brinkley and Evan Szarenski
On January 8, 2025, the Federal Acquisition Regulatory Council (“FAR Council”) published a notice in the Federal Register withdrawing last year’s Notice of Proposed Rulemaking (NPRM) titled “Pay Equity and Transparency in Federal Contracting.”
As previously covered in a DCI Blog post, the NPRM proposed 1) prohibiting federal contractors and subcontractors from seeking and considering information regarding job applicants’ compensation history and 2) requiring federal contractors and subcontractors to disclose compensation information in job advertisements. The NPRM’s stated purpose was to eliminate discriminatory pay practices and advance pay equity, which in turn would promote efficiency in government procurement.
The reason provided for withdrawal of the proposal is the limited time remaining in the current administration and, as a result, shifted priorities. As of now, the proposal to impose these requirements on federal contractors is dead and will likely not be revived in the foreseeable future.
Nonetheless, while federal contractors and subcontractors no longer need to plan for the changes proposed at the federal level, there are still state level transparency laws to remain aware of. See this blog for an outline of the states with pay transparency laws and reach out to your consultant if you have any questions on how to prepare for applicable requirements.
