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OFCCP’s Advance Notice of Proposed Compensation Data Collection Tool

On August 10, 2011, the Office of Federal Contract Compliance Programs (“OFCCP”) issued an Advance Notice of Proposed Rulemaking, inviting public input on a new “Compensation Data Collection Tool”. The development of this tool signals the OFCCP’s intent, under the direction of President Obama, to vigorously pursue pay discrimination among contractors.

The new tool is set to replace the Equal Opportunity Survey (“EO Survey”), which the government deemed ineffective as a tool to target non-compliant contractors. According to the Notice, the OFCCP is considering adopting new practices that will substantially increase the burden on federal contract employers. Among other things, OFCCP has indicated that it may utilize the data collection to “to identify opportunities for nationwide multi-establishment compensation reviews.” The OFCCP is also considering requiring companies to submit compensation information as part of the bidding process for federal contracts.

According to the OFCCP, the proposed tool is intended to “provide insight into potential problems of pay discrimination by contractors that warrant further review or evaluation by OFCCP or contractor self-audit.” Data collected with the tool will be used to identify contractors for both compensation focused reviews and full compliance reviews. The OFCCP has indicated that the data will be used “primarily as a screening tool, although it may have research value.”

The purpose of the Advance Notice is to “solicit comments from interested parties as early as possible in the development process of this new data collection tool” and “maximize the opportunity to participate in the rulemaking process.” In light of the increased burden this new tool threatens to place on contractors, covered employers should consider submitting comments to the OFCCP. Comments are due 60 days after publication and may be submitted on this web site, or by mail or hand-delivery to: Debra A. Carr, Division of Policy, Planning, and Program Development, OFCCP, Room C-3325, 200 Constitution Ave. N.W., Washington, D.C. 20210.

©2022 MICHAEL BEST & FRIEDRICH LLPNational Law Review, Volume I, Number 255
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About this Author

scott c. beightol, partner, labor and employment law, michael best law firm
Partner

Scott counsels clients on their “people” issues. Businesses, owners, and boards of directors look to Scott as their outside general counsel to ensure legal compliance of their operations and initiatives. Scott represents businesses before federal and state courts and administrative agencies throughout the country in all areas of employment law, with particular focus on:

  • Employment discrimination, including before the Equal Employment Opportunity Commission and Office of Federal Contract Compliance Programs (OFCCP)
  • Non-compete and trade secrets
  • Labor...
414-225-4994
Sarah Flotte, labor employment law attorney, Michael best law firm
Partner

Sarah serves as a trusted advisor offering proactive, strategic employment counsel. Representing companies and management exclusively, she works with a diverse range of manufacturing, logistics, government, financial, and higher education clients of all sizes. 

Sarah’s strategic, client-focused practice includes:

  • Litigation involving discrimination, harassment and retaliation claims, non-compete enforcement and defense, employee leave disputes, wage-and-hour claims, and defamation lawsuits

  • ...
312-661-2104
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