The U.S. Department of Labor is releasing a directive to promote raising awareness for contractors to identify barriers to equal pay.
Director of the Office of Federal Contract Compliance Programs Jenny R. Yang said the office is increasing efforts to remove barriers to pay equity and ensuring contractors are complying with their obligation to conduct comprehensive pay equity audits, according to a March 15 news release.
“The Office of Federal Contract Compliance Programs’ directive on pay equity audits is an important measure that will help employers address and prevent pay inequality,” Yang said.
According to the directive, if the agency has questions about a contractor's compensation methods, it may require the contractor to present their pay equity audit to check the contractor's compliance.
The Equal Pay Act was passed in 1963. Almost 60 years later, significant pay gaps still exist in the U.S. According to the DOL, women working full-time in the U.S. earn approximately 83 cents for every dollar paid to men, with the wage gap widening even more for women of color.
This new federal directive directly aligns with the executive order on advancing economy, efficiency and effectiveness in federal contracting by promoting pay equity and transparency signed March 15 by the current administration.
