Non-Retaliation for Disclosure of Compensation Information, 20749-20750 [2014-08426]

Agencies

• Executive Office of the President

[Federal Register Volume 79, Number 70 (Friday, April 11, 2014)]
[Presidential Documents]
[Pages 20749-20750]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-08426]




                        Presidential Documents 



Federal Register / Vol. 79 , No. 70 / Friday, April 11, 2014 / 
Presidential Documents

[[Page 20749]]


                Executive Order 13665 of April 8, 2014

                
Non-Retaliation for Disclosure of Compensation 
                Information

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including the Federal Property and 
                Administrative Services Act, 40 U.S.C. 101 et seq., and 
                in order to take further steps to promote economy and 
                efficiency in Federal Government procurement, it is 
                hereby ordered as follows:

                Section 1. Policy. This order is designed to promote 
                economy and efficiency in Federal Government 
                procurement. It is the policy of the executive branch 
                to enforce vigorously the civil rights laws of the 
                United States, including those laws that prohibit 
                discriminatory practices with respect to compensation. 
                Federal contractors that employ such practices are 
                subject to enforcement action, increasing the risk of 
                disruption, delay, and increased expense in Federal 
                contracting. Compensation discrimination also can lead 
                to labor disputes that are burdensome and costly.

                When employees are prohibited from inquiring about, 
                disclosing, or discussing their compensation with 
                fellow workers, compensation discrimination is much 
                more difficult to discover and remediate, and more 
                likely to persist. Such prohibitions (either express or 
                tacit) also restrict the amount of information 
                available to participants in the Federal contracting 
                labor pool, which tends to diminish market efficiency 
                and decrease the likelihood that the most qualified and 
                productive workers are hired at the market efficient 
                price. Ensuring that employees of Federal contractors 
                may discuss their compensation without fear of adverse 
                action will enhance the ability of Federal contractors 
                and their employees to detect and remediate unlawful 
                discriminatory practices, which will contribute to a 
                more efficient market in Federal contracting.

                Sec. 2. Amending Executive Order 11246. Section 202 of 
                Executive Order 11246 of September 24, 1965, as 
                amended, is hereby further amended as follows:

                    (a) Paragraphs (3) through (7) are redesignated as 
                paragraphs (4) through (8).
                    (b) A new paragraph (3) is added to read as 
                follows:
                    ``The contractor will not discharge or in any other 
                manner discriminate against any employee or applicant 
                for employment because such employee or applicant has 
                inquired about, discussed, or disclosed the 
                compensation of the employee or applicant or another 
                employee or applicant. This provision shall not apply 
                to instances in which an employee who has access to the 
                compensation information of other employees or 
                applicants as a part of such employee's essential job 
                functions discloses the compensation of such other 
                employees or applicants to individuals who do not 
                otherwise have access to such information, unless such 
                disclosure is in response to a formal complaint or 
                charge, in furtherance of an investigation, proceeding, 
                hearing, or action, including an investigation 
                conducted by the employer, or is consistent with the 
                contractor's legal duty to furnish information.''

                Sec. 3. Regulations. Within 160 days of the date of 
                this order, the Secretary of Labor shall propose 
                regulations to implement the requirements of this 
                order.

[[Page 20750]]

                Sec. 4. Severability. If any provision of this order, 
                or the application of such provision or amendment to 
                any person or circumstance, is held to be invalid, the 
                remainder of this order and the application of the 
                provisions of such to any person or circumstances shall 
                not be affected thereby.

                Sec. 5. General Provisions. (a) Nothing in this order 
                shall be construed to limit the rights of an employee 
                or applicant for employment provided under any 
                provision of law. It also shall not be construed to 
                prevent a Federal contractor covered by this order from 
                pursuing a defense, as long as the defense is not based 
                on a rule, policy, practice, agreement, or other 
                instrument that prohibits employees or applicants from 
                discussing or disclosing their compensation or the 
                compensation of other employees or applicants, subject 
                to paragraph (3) of section 202 of Executive Order 
                11246, as added by this order.

                    (b) Nothing in this order shall be construed to 
                impair or otherwise affect:

(i) the authority granted by law to a department, agency, or the head 
thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (c) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.
                    (d) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.

                Sec. 6. Effective Date. This order shall become 
                effective immediately, and shall apply to contracts 
                entered into on or after the effective date of rules 
                promulgated by the Department of Labor under section 3 
                of this order.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    April 8, 2014.

[FR Doc. 2014-08426
Filed 4-10-14; 11:15 am]
Billing code 3295-F4