OFCCP Proposes Rule to Collect Compensation Data from Federal Contractors and Subcontractors | Practical Law

OFCCP Proposes Rule to Collect Compensation Data from Federal Contractors and Subcontractors | Practical Law

The Department of Labor's (DOL) Office of Federal Contract Compliance Programs (OFCCP) issued a Notice of Proposed Rulemaking (NPRM) which would amend Executive Order 11246 to require federal contractors and subcontractors to supplement their Employer Information Report (EEO-1) by submitting a new annual Equal Pay Report on employee compensation.

OFCCP Proposes Rule to Collect Compensation Data from Federal Contractors and Subcontractors

by Practical Law Labor & Employment
Published on 08 Aug 2014 • USA (National/Federal)
The Department of Labor's (DOL) Office of Federal Contract Compliance Programs (OFCCP) issued a Notice of Proposed Rulemaking (NPRM) which would amend Executive Order 11246 to require federal contractors and subcontractors to supplement their Employer Information Report (EEO-1) by submitting a new annual Equal Pay Report on employee compensation.
On August 6, 2014, the DOL's Office of Federal Contract Compliance Programs (OFCCP) issued a Notice of Proposed Rulemaking (NPRM) which would amend Executive Order 11246 to require federal contractors and subcontractors to supplement their Employer Information Report (EEO-1) by submitting a new annual Equal Pay Report on employee compensation.
The proposed requirements would apply to contractors and subcontractors that:
  • Are required to file EEO-1 reports.
  • Have more than 100 employees.
  • Have a contract, subcontract or purchase order amounting to $50,000 or more that covers a period of at least 30 days, including modifications.
These contractors and subcontractors would be required to provide compensation information on their employees based on several categories including:
  • Sex.
  • Race.
  • Ethnicity.
  • Specified job categories.
  • Hours worked.
  • Number of employees.
The proposed rule is intended to maximize efficiency by:
  • Focusing OFCCP's enforcement resources on those contractors whose data suggests pay violations.
  • Reducing the likelihood of reviewing companies that are more compliant.
  • Minimizing the compliance burden on federal contractors.
  • Avoiding expensive new record-keeping requirements by using existing reporting frameworks that are already maintained by contractors.
This NPRM was issued in response to an April 8, 2014 Presidential Memorandum which instructed the Secretary of Labor to propose a rule within 120 days about collecting summary compensation data from federal contractors and subcontractors. The rule will be published on the Federal Register on August 8, 2014. Comments must be received by November 6, 2014 (90 days from publication).
UPDATE: On October 31, 2014, the DOL announced that the comment period for the proposed rule was extended 60 days from November 6, 2014 to January 5, 2015.