Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency

This document is Executive Order (EO) 14069, titled “Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency,” issued by President Biden and signed in March 2022. The core purpose is to promote pay equity and greater pay transparency in federal contracting, with the goal of eliminating discriminatory pay practices that hinder the federal workforce and the efficiency of federal procurement. The order directs the federal government to pursue rules and guidance that reduce reliance on applicants’ or employees’ past or current compensation when making hiring and pay decisions for both federal employees and workers under federal contracts. Key actions include directing the Federal Acquisition Regulatory (FAR) Council to consider proposed rules to boost pay equity and transparency in procurement, including potentially restricting contractors from seeking or using an applicant’s or employee’s salary history. The order also indicates that the Office of Personnel Management (OPM) will propose rules related to salary history for federal employees, aligned with Executive Order 14035 on Diversity, Equity, Inclusion, and Accessibility. The order emphasizes that any rules would be implemented consistent with law and subject to appropriations, and notes that the order does not create enforceable rights.