Biden admin ends salary history as factor in pay for fed workers, contractors, cites 'inequalities'

The Biden administration announced two new steps to prohibit the use of salary history for federal employees and federal contractors.

On Monday, the Office of Personnel Management announced a regulation where agencies cannot consider an applicant’s non-federal salary history when setting pay for new employees. 

For federal contractors, the administration proposed a rule that would not allow contractors to seek out or consider information about job applicants’ previous compensation when hiring. 

“Relying on a candidate salary history can exacerbate pre-existing inequality in our pay structures and disproportionately impact women and workers of color,” Shalanda Young, director of the Office of Management and Budget said in a press briefing, according to The Hill.

President Joe Biden said that these new steps will help with the "fight for equal pay."

"Women workers are still paid on average 84 cents for every dollar paid to men, and the disparities are even greater for many women of color," Biden said in a statement.  "Today, my Administration is taking new actions to advance pay equity for the federal workforce and employees of federal contractors."

The regulations will go into effect in about two months.