OFCCP’s Pay Transparency Final Rule

Recruiting Guide

Version
R2025.2.1
ft:lastEdition
2025-12-01
OFCCP’s Pay Transparency Final Rule

Before You Begin: This section is relevant to your organization if you are a private employer doing business with the federal government with contracts or subcontracts over $10,000 entered into or modified after January 11, 2016.

OFCCP’s Final Rule implements Executive Order 13665, signed by President Obama on April 8, 2014. This Executive Order amends Executive Order 11246 to promote pay transparency and openness by protecting workers and job applicants who share compensation information from discrimination. Executive Order 11246 now protects applicants and employees who inquire about, discuss, or disclose compensation information. The Final Rule discusses the limited exceptions that apply.

Compensation includes employee wages and wage offers made to job applicants. This includes, but isn’t limited to, salary, wages, overtime pay, shift differentials, bonuses, commissions, vacation and holiday pay, allowances, insurance and other benefits, stock options and awards, profit sharing, and retirement.

The Final Rule requires contractors to distribute a nondiscrimination provision, using the language as provided by the Directory of the OFCCP, to employees and applicants. Contractors must include the notice in employee manuals or handbooks posted electronically or in a place accessible to employees. Contractors must also provide applicants for employment with the nondiscrimination provision posted electronically or in a place accessible to applicants.