Executive Order Prohibits Retaliation for Disclosing Compensation Information | Practical Law

Executive Order Prohibits Retaliation for Disclosing Compensation Information | Practical Law

President Obama has released an Executive Order prohibiting federal contractors from retaliating against employees or applicants for inquiring about, discussing or for disclosing compensation information.

Executive Order Prohibits Retaliation for Disclosing Compensation Information

Practical Law Legal Update 2-564-3986 (Approx. 4 pages)

Executive Order Prohibits Retaliation for Disclosing Compensation Information

by Practical Law Labor & Employment
Published on 09 Apr 2014USA (National/Federal)
President Obama has released an Executive Order prohibiting federal contractors from retaliating against employees or applicants for inquiring about, discussing or for disclosing compensation information.
On April 8, 2014, President Obama released an Executive Order prohibiting federal contractors from retaliating against employees and applicants for inquiring about, discussing or disclosing the compensation of employees and applicants.
The order adds a new paragraph three to Section 202 of Executive Order 11246 of September 24, 1965. The new paragraph three states that:
The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information.
The Order directs the Secretary of Labor to propose regulations (DOL regulations) to implement its requirements within 160 days. The order becomes effective immediately and will apply to contracts entered into on or after the effective date of the DOL regulations.