1. United States
2. Va.
3. Letter

A uniform federal pay transparency rule for government contractors would help advance fair and equitable pay practices across sectors. According to a 2023 study by PayScale, the controlled pay gap, which accounts for compensable factors like job, experience, and location, is over 8% between men and women in the U.S. Another study from the American Association of University Women found the gap widens to 24% between white men and Latina women one year after college graduation. Since the proposed rule requiring federal contractors to disclose pay details in job postings was withdrawn, the patchwork of state and local pay transparency laws remains, creating compliance challenges. As reported by SHRM, 21 states currently have pay transparency provisions, with obligations varying widely from disclosing pay range to applicants to publishing pay data across demographics. A national standard mandating transparency around compensation from the outset would enable job seekers to make fully informed decisions and prevent pay disparities before they arise. Research from Harvard Business Review associates greater pay transparency with decreased gender wage gaps and higher job satisfaction. Allowing applicants to negotiate from an equal plane promotes pay equity and helps close discriminatory gaps. Contractors should support reintroducing a federal pay transparency obligation to cultivate workplaces built on openness, accountability, and equal opportunity. Prioritizing transparency in compensation is key to attracting top talent and fostering inclusive, ethical workplaces that reflect American values of fairness.