Federal Contractors Beware – Part 4

By Lori Wright Keffer

On August 6, 2014, the Office of Federal Contract Compliance Programs (OFCCP) released a proposed rule requiring federal contractors to provide “summary” compensation data, as instructed by President Obama in his April 8, 2014 memorandum discussed here. The proposed rule applies to companies that: file EEO-1 reports; maintain 100 employees or more; and possess federal contracts or subcontracts worth $50,000.00 or more for thirty days or more.

The proposed rule would impose a serious burden on covered employers. Specifically, the proposed rule requires federal contractors and subcontracts to file annual “Equal Pay Reports” providing three types of information: (1) the amount of workers within a specific EEO-1 job category, broken down by race, gender, and ethnicity; (2) the total amount of hours worked by those in the job category, broken down by race, gender, and ethnicity; and (3) the total amount of W-2 wages of workers in the job category, broken down by race, gender, and ethnicity. The reports would be due to the OFCCP by March 31, and provide information on the prior calendar year.

The OFCCP intends to use the collected data to develop “objective industry standards” and help uncover potential pay violations. Should you want to comment on this proposed rule, you must do so by November 6, 2014.