"The OFCCP\'s New Compliance Developments"
1. The OFCCP’s New Compliance Developments
Focuses
Compensation disparities (fair pay)
Employment of veterans and individuals with disabilities
Respond to Audit Letter
Keep record once letter is received
30 days to submit information to respond
Adverse Impact
Minority vs. Non-Minority
Individual Race Groups vs. Whites
Favored vs. Non-Favored (Groups AA vs. Whites, etc.)
*Perform salary equity analysis and be able to defend disparities
Pending Law
“New Scheduling Letter”
Policies
FMLA
Pregnancy Leave
Accommodations – Religious Observances
More Specific Demographic Information
Total each minority sub-group (rather than all minorities)
Data both job groups and job title
More Specific Compensation
(February 1st Annually)
All employees (FT/PT/Temp./Contractors/Etc.
Gender/Race & Ethnicity Information (hire date and job group)
Other compensation (adjustments and salary)
Any documentation related to compensation practices
VETS 100-A & EEO-1
(3 Year Retention Records)
Statistical Significance
Significant differences in compensation
Two standard deviations 5% difference
Difference of two standard deviations or more are statistically significant
Rare outcome
2. The OFCCP’s New Compliance Developments
Multiple Regression Analysis
Employees differ
Multiple regression examines differences in average pay controlling for other factors
• Comparisons are within job groupings
• Control for differences in experience, etc.
Compensation Audits
2% “smell test” – identify differences in job title/sub groups
Submit follow-up data
Regression analysis by job title
“Individual” compensation claims vs. systematic claims
Disparity (Job Group/Title/Pay Grade)
Proposed Laws
Proposed regulations regarding Veterans (placement goals)
Proposed regulations regarding individuals with disabilities (placement goal – stringent
placement & accommodation(s).)
Compensation collection tool