The rules follow statements by the Biden administration that prior salaries may reflect the results of discrimination. Image: Mark Van Scyoc/Shutterstock.com
By: FEDweek StaffWhen setting starting pay for newly hired employees, federal agencies could not take into consideration their history of salaries when working other than for the federal government, under rules OPM proposed in the May 11 Federal Register.
Also, agencies “would be required to have a policy that supports consistency in setting pay for employees” if they take into account a person’s former federal salary, under rules that would apply to the GS, wage grade, administrative law judge and administrative appeals judge systems. While starting salaries under those systems generally are set according to how the position is classified, agencies do have some leeway to pay more, for reasons such as a job candidate’s superior qualifications or the agency’s special need for that person’s skills.
“Setting pay based on an individual’s salary history may maintain or exacerbate pay inequity a job candidate experienced in their current or previous employment,” the notice says. It adds that pay gaps by gender and by race/ethnicity “exist in the federal government’s civil service, though such gaps are typically smaller than in the private sector.”
The rules follow statements by the Biden administration of an intent to set such a policy on grounds that prior salaries—especially by non-federal employers—may reflect the results of discrimination. They go beyond a policy set under the Obama administration stating that when using flexibilities in setting starting salaries for newly hired employees, agencies could consider prior salary history, although only as one of a number of factors such as a competing job offer.
“The proposed regulations would require an agency to consider how pay has been set for other employees who had similar qualifications (based on the level, type, or quality of the candidate’s skills or competencies or other qualities and experiences) who have been newly appointed to positions that are similar to the candidate’s position (based on the position’s occupational series, grade level, organization, geographic location, or other job-relevant factors), if applicable. The regulations would continue to allow an agency to consider the salary in a competing job offer,” the notice says.
The rules also would leave in place another policy from the Obama administration stating that such flexibilities must be used in a gender-neutral manner, for example to not disadvantage someone who has had a break in employment due to child-related responsibilities.
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