- Update: Employers Must Provide Pay Transparency
- February 17, 2017 | Authors: Meredith Merry Campbell; John D. Clifford; Joy C. Einstein; Gregory D. Grant; Stacey L. Schwaber
- Law Firm: Shulman, Rogers, Gandal, Pordy & Ecker, P.A. - Potomac Office
As we reported in our November 23, 2016 Employment Alert, a Texas judge issued a preliminary injunction in response to President Obama’s Fair and Safe Workplaces Executive Order 13673. This Executive Order: (1) directed prospective contractors to disclose labor law violations and provided an explanation on how they would be factored into federal contract awards; (2) required contractors' employees be provided with information regarding their pay; and (3) ensured that victims of sexual assault and harassment are not forced to arbitrate their claims if they work for companies with large federal contracts.
Prongs 1 and 3 (above) were enjoined by the Texas judge, meaning they will not go into effect unless something changes. But the preliminary injunction did not prevent the pay transparency provisions (prong 2) from taking effect on January 1, 2017. These provisions require contractors to provide employees on federal contracts exceeding $500,000 with a document listing certain information each pay period, including hours works, overtime hours, rate of pay, gross pay, and an itemized summary of all additions to or deductions from the employee's earnings for that pay period. Employers do not have to provide this information to independent contractors or exempt employees made aware of their status.
It is unclear at this time how the incoming Administration may change this Executive Order. Federal contractors, however, are advised to comply with the pay transparency provisions until further notice.