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OFCCP Releases New Compensation Directive

Thomas J. Carnahan, PhD

Desk audits and pay evaluations will be affected

The OFCCP today posted a new Directive for Compensation. This is significant news as it clarifies the OFCCP's position on desk audits and how they will evaluate pay going forward. OFCCP has undergone many adjustment to their pay equity enforcement practices over the last 20 years and with a new Director in place, the direction will change once more.

The OutSolve team has been monitoring potential changes and we will continue to review these changes and share information as it is released.

Link to the Directive

Introductory text from OFCCP website:

Equal pay is a critical issue for workers and their families, and a priority of OFCCP’s equal employment compliance assistance and compliance evaluation activities. On August 24, 2018, OFCCP issued DIR 2018–05 Analysis of Contractor Compensation Practices During a Compliance Evaluation, which outlines OFCCP’s standard procedures for reviewing contractor compensation practices during a compliance evaluation. The directive, which replaces OFCCP DIR 2013-03 (known as Directive 307), clarifies OFCCP’s approach to compensation evaluations including the use of statistical and other evidence, pay analysis groupings and statistical modeling. The directive also reinforces OFCCP’s commitment to greater transparency, consistency and efficiency in compliance evaluations.

More details coming soon. OutSolve has an invaluable whitepaper on pay equity Here.

Please contact us if you have questions. (888) 414-2410.

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