The landscape of pay transparency in federal contracting has shifted once again with President Trump’s rescission of Executive Order 14069, which was originally signed by President Biden in March 2022. EO 14069 aimed to advance pay equity and transparency in federal contracting by restricting the use of compensation history in hiring and requiring the disclosure of salary ranges in job postings. However, with its rescission, these policies are no longer in effect.

What This Means for Federal Contractors

• With the repeal of EO 14069, the Federal Acquisition Regulatory (FAR) Council has withdrawn the proposed rule that would have prohibited compensation history inquiries and mandated pay transparency in federal job postings. This means that federal contractors are no longer required to:
• Refrain from using compensation history to determine pay for federal contract positions.
• Include salary ranges in job postings related to federal contracts.

While this shift gives employers more flexibility, it is essential to recognize that state and local laws on pay transparency and salary history bans still apply and may restrict these practices depending on location.

State-Level Laws on Salary History and Pay Transparency

Despite the federal change, many states continue to enforce their own salary history bans and pay transparency laws. Employers operating across multiple states should ensure their hiring policies comply with local regulations, even though federal restrictions have been lifted.

What This Means for Private Sector Employers

While this executive order applies primarily to federal contractors, private sector employers should still pay close attention. Many states and local jurisdictions continue to push for pay transparency laws, and industry trends may influence future federal policies.

Employers should:

• Monitor legislative changes at both the federal and state levels.
• Review hiring policies to ensure compliance with state and local laws.
• Train HR professionals and hiring managers on best practices regarding pay transparency.

Key Takeaways

EO 114069 has been rescinded, lifting federal restrictions on salary history inquiries and pay transparency requirements for contractors.

The Federal Acquisition Regulatory (FAR) Council has withdrawn its proposed rule, removing federal mandates on salary disclosures in job postings.

State and local laws still apply, and many states maintain salary history bans and pay transparency requirements.

Employers should stay proactive in reviewing compliance requirements and adjusting hiring policies accordingly.

For a full list of state laws on salary history bans and pay transparency, visit the National Conference of State Legislatures (NCSL) website.

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