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All in a Day's Work® - Insights on Labor & Employment Law

Labor department proposes new rule for federal contractors and subcontractors: non-retaliation against employees who discuss compensation

The Department of Labor recently issued a news release regarding a proposed rule to implement Executive Order 13665, signed by President Obama on April 8, 2014. The proposed rule articulates how the Office of Federal Contract Compliance Programs (OFCCP) will implement the Executive Order’s requirement prohibiting federal contractors and subcontractors from discharging or otherwise discriminating against employees and applicants for talking about pay.

Notably, the regulations, if adopted in their current form, will give legal redress to applicants and employees under Executive Order 11246 who can demonstrate that discussing or disclosing compensation information was a “motivating factor” in their termination or other adverse employment action. Under this standard, a complainant need only demonstrate that discussing or disclosing compensation information was one of any number of factors in the employer’s discharge or discipline decision.

If you have any questions regarding the implications this rule may have on your company, please contact a member of our Labor & Employment team.

September 22, 2014

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