It is likely that the Department of Labor (DOL) pay transparency requirements will apply to financial institutions when they go into effect on January 11, 2016. However, it is too early to tell whether the paid sick leave requirements will apply to financial institutions.

The pay transparency requirements refer back to an earlier executive order that has long been held to apply to financial institutions. The executive order establishing the pay transparency requirements amends an earlier order, Executive Order 11246, which is the source of affirmative action plan requirements, among others. The DOL has long interpreted Executive Order 11246 as applying to financial institutions, defining them as “government contractors” by virtue of their access to deposit insurance. Consequently, we believe that the DOL will expect financial institutions to comply with the new pay transparency requirements that have been amended onto Executive Order 11246, effective January 11, 2016.

However, it is not yet clear whether the paid sick leave requirements will apply to financial institutions. Those requirements arise out of Executive Order 13706, which was released on September 7, 2015. Unlike the pay transparency Executive Order, this order is not tied to Executive Order 11246. The order applies to all “federal contractors,” without defining the term, and consequently the scope of its requirements is ambiguous. The order does require the DOL to issue regulations by September 30, 2016, which may define the scope of the paid sick leave requirements. Until those regulations are released, we cannot say whether the paid sick leave requirements will apply to financial institutions.

For resources related to our guidance, please see:

• Office of Federal Contract Compliance Programs FAQs (“Is a financial institution that is covered by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA) with deposit insurance subject to . . . Executive Order 11246, as amended . . . ? Yes. Financial institutions with federal share and deposit insurance are considered to be government contractors . . . .”)

• Executive Order 13665, Non-Retaliation for Disclosure of Compensation Information (April 8, 2014) (This executive order establishes the pay transparency requirements.)

• Department of Labor rule, Government Contractors, Prohibitions Against Pay Secrecy Policies and Actions, 80 Fed. Reg. 54933 (September 11, 2015) (The DOL’s pay transparency rules, which become effective January 11, 2016.)

• Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors (September 7, 2015) (This executive order establishes the paid sick leave requirements and orders the DOL to issue rules by September 30, 2016.)