AGC Opposes OFCCP-Proposed Compensation Data Collection Tool

November 16, 2011
On Oct. 11, 2011, AGC submitted comments on the Aug. 10, 2011, Office of Federal Contract Compliance Program’s (OFCCP) advance notice of proposed rulemaking (ANPRM) pertaining to non-discrimination in compensation and the creation and mandated use of a new compensation data collection tool for federal and federally-assisted contractors.  While the ANPRM proposal is not presently intended to apply to construction contractors, it does inquire about whether expansion to include the construction industry is warranted. OFCCP’s proposal would create a compensation data collection tool and require federal contractors to input compensation data for employees that would later be analyzed by the agency to determine if a more in-depth audit of a contractor’s pay practices is necessary.  AGC is firmly committed to the principles of equal opportunity employment regarding pay practices; however, by creating and requiring contractors to use a complex compensation data collection tool, AGC’s comments state that OFCCP would create additional, unnecessary administrative burdens for employers and potentially make critically private compensation information available to the public.  If implemented, both would have a significant economic impact on a substantial number of businesses, including construction firms.  AGC’s comments ask OFCCP to withdraw the  ANPRM, at minimum until such time that OFCCP, in conjunction with AGC, determines whether there is an actual need for such a tool to collect compensation data and, if so, the least burdensome means for doing so.  Specifically, AGC points out that compensation for federal contracting construction employers is already regulated by the U.S. Department of Labor pursuant to the Davis-Bacon Act.  In addition, administrative departments within construction companies are short staffed and the affect on small construction companies will be enormous.  Furthermore, AGC is not aware of, and would be surprised to hear of any pay disparities in the construction industry, therefore, making this proposed new reporting requirement unnecessary.  AGC will continue to monitor the status of the ANPRM and has offered OFCCP additional support and guidance during this rulemaking process.  For more information, contact Tamika C. Carter, PHR, at or (703) 837-5382.
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