On August 8, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a Notice of Proposed Rulemaking that, if implemented, will require covered federal contractors and subcontractors to submit an annual Equal Pay Report on employee compensation.
The proposal covers contractors with more than 100 employees and with a contract, subcontract, or purchase order worth $50,000 or more that covers a period of at least 30 days. On an annual basis, such contractors would have to submit on the new Equal Pay Report summary employee compensation data by sex, race, ethnicity, and specified job categories, as well as other relevant data points that would include hours worked and number of employees.
OFCCP plans to use the collected data to help 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 states that it 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.
The proposed rule is the result of an April 2014 Presidential Memorandum directing OFCCP to establish a tool that would require Federal contractors and subcontractors to submit summary data on compensation paid to their employees, including by sex and race. OFCCP originally published an Advanced Notice of Proposed Rulemaking more than three years ago announcing the desire to create such a tool. AGC provided comments to OFCCP after the 2011 announcement.
AGC will submit comments on the proposal before the November 6 deadline. Members interested in providing input to AGC should promptly contact Tamika Carter at cartert@agc.org.
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