In April, the Obama Administration took a decisive step toward closing the gap in pay equality for women and minorities employed by Federal contractors, including nonprofits. Additionally, the U.S. House of Representatives passed new legislation aimed at increasing transparency for both Federal procurement and grant funds.

Pay Equality -

On April 8, 2014, President Barack Obama signed an Executive Order and a Presidential Memorandum advancing pay equality for women and minorities employed by Federal contractors. The Order prohibits Federal contractors that generally have contracts exceeding $10,000 from retaliating against employees who discuss their compensation. The Memorandum directs the U.S. Department of Labor (DOL) to propose a rule requiring Federal contractors and subcontractors to submit summary compensation data to DOL, including data categorized by sex and race. The data will be used to develop tools to enhance both voluntary compliance with and enforcement of Federal Equal Pay and Civil Rights laws. DOL must issue the rule within 120 days. Contractors will not understand the full impact of either the Order or Memorandum until DOL implements its regulations. The Memorandum requests DOL "[t]o the extent feasible…avoid new record-keeping requirements and rely on existing reporting frameworks." Although the Executive Order and Presidential Memorandum appear to apply to contractors and not grantees, nonprofits that have both contracts and grants with the Federal government will be covered.

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Topics:  DOL, Equal Pay, Executive Orders, Federal Contractors, Federal Grants, Federal Procurement Systems, Grants, Non-Profits, OFCCP, Wage and Hour

Published In: Civil Rights Updates, Government Contracting Updates, Labor & Employment Updates, Nonprofits Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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