Federal Pay Transparency Rule Nixed

The Biden administration withdrew its proposed rule that would have required federal contractors to provide pay ranges in job postings, among other pay transparency measures. 

Why it matters: The proposed rule would have been the strictest U.S. pay transparency requirement on the books. Since the issue is not a priority for the incoming Trump administration, it is unlikely that we will see federal pay transparency regulations again for the foreseeable future. 

A welcomed result: HR Policy urged the Biden administration to scrap the rule in comments submitted last year, citing its overly broad disclosure requirements, its unclear application and scope, and the potential for competitive disadvantage, among other issues. 

Preserving the ability for future regulation: If the Biden administration had instead finalized the rule, the Republican-controlled Congress would have likely nixed it through a Congressional Review Act (CRA) resolution. 

• CRA resolutions not only invalidate a regulation but also prohibit anything similar from being issued in the future. 

• The Biden administration likely pulled the rule, in part, to preserve the chance for a future administration to issue a similar pay transparency regulation. 

Look to the states: A federal pay transparency law or regulation may be unlikely for some time, but the issue continues to percolate at the state level. 

• Nearly half of all states now have salary history bans while a dozen have laws requiring pay ranges in job postings. 

• Meanwhile, nearly a third of states have pay transparency legislation under consideration in 2025.