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Secretary of Labor Must Propose Rule Requiring Federal Contractors and Subcontractors to Submit Compensation Data
Practical Law Legal Update 8-564-3945 (Approx. 3 pages)
Secretary of Labor Must Propose Rule Requiring Federal Contractors and Subcontractors to Submit Compensation Data
by Practical Law Labor & Employment
| Published on 09 Apr 2014 • USA (National/Federal) |
President Obama has released a Presidential Memorandum directing the Secretary of Labor to propose a rule within 120 days that would require Federal contractors and subcontractors to submit to the Department of Labor (DOL) summary data on employee compensation, including information about the sex and race of employees.
On April 8, 2014, President Obama released a Presidential Memorandum directing the Secretary of Labor to propose a rule that would require Federal contractors and subcontractors to submit to the DOL summary data on the compensation they pay to their employees, including information about the sex and race of employees.
When devising the rule, the Secretary of Labor must:
- Consider approaches that:
- maximize efficiency and effectiveness by enabling the DOL to direct its enforcement resources towards entities whose reported data suggests potential discrepancies in compensation and not towards entities showing no evidence of potential pay violations;
- minimize the burden on Federal contractors and subcontractors, especially small entities and nonprofit organizations; and
- use the compensation data to encourage greater voluntary compliance by employers with Federal pay laws to identify and analyze industry trends.
- Avoid new recordkeeping requirements and rely on existing reporting frameworks to collect the summary data.
- Consider independent studies regarding the collection of compensation data.
The Secretary of Labor must propose the rule within 120 days of the date of the memorandum.