by Federal contractors and subcontractors will not be required to disclose compensation information in job postings for jobs related to a federal contract. On January 8, 2025, the Federal Acquisition Regulatory Council (FAR Council) withdrew a rule proposed in early 2024 that would have required federal contractors to disclose compensation information in internal and external postings for jobs related to a federal contract. The proposal also would have prohibited federal contractors from considering an applicant or employee’s salary history when making compensation decisions.
The FAR Council’s stated reason for withdrawing the rule is the limited time remaining in the current administration and the need to focus the Council’s attention on other priorities, such as directives from recent National Defense Authorization Acts.
The rule withdrawal does not change the statutory obligations of employers operating in states that have pay transparency and salary history laws. For example, this year, Minnesota joined other states (California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, New York, Washington, and Rhode Island) requiring compensation disclosure in job ads. A dozen states also limit private employers’ consideration of salary history in employment decisions.
