The Office of Personnel Management (OPM) has taken a significant step towards addressing gender and racial pay disparities within the Federal workforce with its latest regulation. Effective April 1, 2024, this rule prohibits the use of salary history in setting pay for new civilian employees, a practice that has historically contributed to ongoing pay inequities.
The private sector should take notice because the use of pay history is going to be a driving force in future claims under the Equal Pay Act based upon extrapolations from this regulation.
Salary history has often been a determining factor in pay decisions, but this approach fails to account for the diverse experiences and qualifications individuals bring to their roles. More critically, it has perpetuated biases, inadvertently anchoring new salaries to previous ones that may have been influenced by discrimination. This cycle has been particularly detrimental to women and people of color, who statistically earn less than their white male counterparts. The gap is even more pronounced for women of color, underscoring the urgency of implementing measures that promote fair compensation.
By mandating that Federal agencies set pay based on merit, qualifications, and the requirements of the position rather than past compensation, the OPM aims to dismantle one of the barriers to achieving pay equity. This rule is a bold move towards creating a more equitable and inclusive Federal workforce, where pay disparities no longer shadow one's career.
For an in-depth understanding of the OPM's final rule and its impact on pay equity, visit the Federal Register: Advancing Pay Equity in Governmentwide Pay Systems.
Salary history has often been a determining factor in pay decisions, but this approach fails to account for the diverse experiences and qualifications individuals bring to their roles. More critically, it has perpetuated biases, inadvertently anchoring new salaries to previous ones that may have been influenced by discrimination. This cycle has been particularly detrimental to women and people of color, who statistically earn less than their white male counterparts. The gap is even more pronounced for women of color, underscoring the urgency of implementing measures that promote fair compensation.
By mandating that Federal agencies set pay based on merit, qualifications, and the requirements of the position rather than past compensation, the OPM aims to dismantle one of the barriers to achieving pay equity. This rule is a bold move towards creating a more equitable and inclusive Federal workforce, where pay disparities no longer shadow one's career.
For an in-depth understanding of the OPM's final rule and its impact on pay equity, visit the Federal Register: Advancing Pay Equity in Governmentwide Pay Systems.
