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ARTICLE · 13 OCTOBER 2015

New OFCCP Changes To Federal Contractor Pay Practices

Dentons
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September was a busy month for federal contractors due to new regulatory requirements.

United StatesGovernment, Public Sector
R. Daniel Beale
R. Daniel Beale
James McNeill
James McNeill
Peter Stockburger
Peter Stockburger
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September was a busy month for federal contractors due to new regulatory requirements. Earlier last month, we told you about  President Obama's new executive order requiring covered government contractors to provide their employees with paid sick leave. Now, the US Department of Labor (DOL) has made it official that (1) government contractors may not discriminate against their employees for discussing their pay or the pay of co-workers; and (2) the minimum wage for employees of federal contractors will increase in 2016.

New pay discrimination rule

In September, the DOL's Office of Federal Contract Compliance Programs (OFCCP) issued a Final Rule implementing Executive Order 13665, which prohibits federal contractors from firing or otherwise disciplining employees or job applicants for discussing their pay or the pay of co-workers. The new rule goes into effect January 11, 2016, and applies to all federal contracts and subcontracts that exceed $10,000 in value.

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