Monday, April 7, 2014
The AP is reporting that President Obama will announce on Tuesday two new executive orders. One will ban federal contractors from maintaining pay secrecy rules. The other will require federal contractors to mantain records on compensation based on race and sex and provide them to the government.
As many readers know (and I swear I told the reporter this), the NLRA already bans pay secrecy rules. An executive order will obviously help as it's enforcement is different and much more likely to prevent these rules earlier. But I think the bigger change is the compensation data rule. Just requiring employers to record that data could have a positive impact if it leads them to better recognize pay disparities and inquire whether they are justified by legitimate reasons. And I'm sure that there are many labor economists, among others, who would love to get their hands on this type of data after a few years.
Hat Tip: Patrick Kavanagh