Client Alert
The Obama Administration Advances Agenda on Wage Inequality Through Executive Orders and Regulations
April 15, 2014
By Blake R. Bertagna
Frustrated with the longstanding failure of Congress to enact the Paycheck Fairness Act and other parts of his economic program, and acting on his State of the Union commitment to take executive action when Congress fails to act, President Obama recently issued two Executive Orders and a Presidential Memorandum impacting employee compensation. One Executive Order raises the minimum wage for employees of federal contractors, and the other prohibits retaliation by federal contractors against employees for making inquiries about or disclosing compensation information. Both Executive Orders will be implemented through regulations to be proposed by the Department of Labor. The Presidential Memorandum also directs the Department of Labor (“DOL”) to promulgate regulations that will require federal contractors to submit summary compensation data by gender and race to the DOL.
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