DEI Pay Cap Act of 2023

DEI Pay Cap Act of 2023

This bill prohibits the Department of Defense (DOD) from appointing or employing a military or civilian employee with a rank or grade in excess of E-5 base pay or GS-5 (not adjusted for locality) for any position with specified diversity, equity, and inclusion components.

Specifically, DOD may not appoint such individuals to positions with duties that include (1) developing and implementing diversity, equity and inclusion policy; (2) leading working groups and councils to develop diversity, equity, and inclusion goals and objectives to measure performance and outcomes; and (3) creating and implementing diversity, equity, and inclusion education, training, and workshops for military and civilian personnel.

Any military or civilian employee who has been appointed to such a position and holds a rank or grade in excess of E-5 or GS-5 must be reassigned to another position not later than 180 days after the enactment of this bill.

Bill 118 s 221, also known as the DEI Pay Cap Act of 2023, is a piece of legislation introduced in the US Congress. The purpose of this bill is to address disparities in pay based on diversity, equity, and inclusion (DEI) factors within organizations.

The main provision of the bill is the establishment of a pay cap for executives and employees of companies that fail to meet certain DEI standards. This pay cap would limit the compensation that these individuals can receive, with the goal of incentivizing companies to prioritize diversity, equity, and inclusion in their hiring and promotion practices.

Additionally, the bill includes provisions for increased transparency and reporting requirements for companies regarding their DEI efforts. This would require companies to disclose information about their workforce demographics, pay equity measures, and efforts to promote diversity and inclusion within the organization. Overall, the DEI Pay Cap Act of 2023 aims to address systemic inequalities in the workplace by holding companies accountable for their DEI practices and promoting greater transparency and equity in pay. It is currently being debated in Congress and has garnered both support and opposition from various stakeholders.