OFCCP Proposes Rule to Collect Summary Compensation Data from Contractors in New Equal Pay Report

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Source: U.S. Department of Labor (DOL)

On August 6, 2014, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs issued a Notice of Proposed Rulemaking requiring covered federal contractors and subcontractors with more than 100 employees to submit an annual Equal Pay Report on employee compensation. The rule will be published shortly in the Federal Register.

The data will enable OFCCP to direct its enforcement resources toward federal contractors whose summary data suggests potential pay violations, while reducing the likelihood of reviewing companies that are less likely to be out of compliance. OFCCP will also release aggregate summary data on the race and gender pay gap by industry and EEO-1 category to enable contractors to review their pay data using the same metrics as OFCCP and take voluntary compliance measures. By using existing reporting frameworks contractors already maintain in electronic payroll records, including W-2 earnings, and the longstanding categories and definitions that apply to the EEO-1 Report, the agency is avoiding costly new recordkeeping requirements and minimizing to the extent feasible the compliance burden on federal contractors and subcontractors.

The deadline for submitting comments will be 90 days from the date of publication in the Federal Register.

Background Materials:

Berkshire will be providing a more detailed explanation of this announcement shortly. In the meantime, please contact a Berkshire compliance expert at 800.882.8904 if you have any questions.

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