Some companies may soon no longer be able to request your salary history
On the 15th anniversary of the signing of the Lilly Ledbetter Fair Pay Act, the White House announced new rules aimed at promoting equal pay for federal workers and contractors.
The new rules, which have not yet taken effect, apply to federal agencies and contractors. The rule would prohibit these employers from seeking and using information about job applicants’ salary histories when making hiring decisions.
The rule could apply to several major US companies with government contracts, including defense, telecommunications and pharmaceutical companies. The rules may put pressure on companies to eliminate employment questions that include salary history and similar inquiries.
White House officials noted that the pay gap between men and women has become smaller over the years. Starting in 2022, a woman over 25 with a full-time job will earn $83.70 for every $100 that a man over 25 with a full-time job earns, according to Department of Labor Statistics.
The wage gap between men and women has shrunk by almost half since the 1980s. But the Biden administration says more needs to be done.
The announcement of the new rules comes 15 years after President Barack Obama signed a bill clarifying discriminatory pay practices. Before the 2009 law, federal law stipulated that men and women must receive equal pay for similar work. However, the 2009 law stipulated that violations of the law could be appealed after each paycheck and not just at the time of employment.
This means that a long-time employee who is suing his company for pay discrimination will have more time to file a lawsuit against his employer.
“Persons who challenge a wide range of practices that have resulted in discriminatory compensation could benefit from passage of the law. These practices may include employers’ decisions about base pay or wages, job classifications, career laddering or other non-competitive promotion denials, tenure denials, and failure to In response, the Equal Employment Opportunity Commission said “to requests for raises.”