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OFCCP Proposes New Equal Pay Report

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.  After publication, there will be a 90-day comment period.

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.

According to the proposal, covered employers would submit electronically three pieces of information related to employee compensation:

  • The total number of workers within a specific EEO-1 job category by race, ethnicity and sex;
  • Total W-2 wages defined as the total individual W-2 wages for all workers in the job category by race, ethnicity and sex; and
  • Total hours worked, defined as the number of hours worked by all employees in the job category by race, ethnicity and sex.

To find out more, go to:  http://www.dol.gov/ofccp/EPR.html

Source:  OFCCP

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