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OFCCP and Pay Equity Prioritization


The Biden Administration has made pay equity a priority, reflected in the first OFCCP Directive issued under the new administration. With this Directive, the Office of Federal Contract Compliance Programs (OFCCP) signaled its commitment to equal pay for all employees regardless of gender, race, or ethnicity. Here’s what you need to know about OFCCP and how it will affect your company and compliance job posting or craigslist high volume job posting.

What is the OFCCP?

The Office of Federal Contract Compliance Programs (OFCCP) is an arm of the U.S. Department of Labor that monitors compliance with equal employment opportunity laws among government contractors and subcontractors. This includes enforcing equal pay requirements for workers protected by Title VII of the Civil Rights Act of 1964 and other federal laws related to wages and hours worked.

What Does OFCCP Directive Do?

OFCCP Directive clarifies that pay equity analyses are not protected by attorney-client privilege or attorney work product privilege when conducted as part of contractor compliance obligations. This means that covered contractors should expect to be asked to provide any pay equity analyses performed as part of their desk audits during contract compliance reviews with OFCCP investigators.

How Can Your Company Stay Compliant?

Under this new Directive, companies need to be proactive in their efforts toward pay equity compliance. Companies should ensure proper OFCCP Job Posting compliance with EEO regulations and a review process for evaluating compensation. It can be based on job duties, location, experience level, etc., rather than discriminatory factors like race or gender. Additionally, employers should conduct regular internal audits to ensure they meet their legal obligations regarding fair compensation practices across all levels of their organization.

Three things to know about the revised Directive:

  1. It clearly states that the agency does not require producing attorney-client privileged communications or attorney work products.
  2. The Directive identifies what documents contractors must provide to show they have conducted an appropriate compensation analysis.
  3. Finally, if problems arise, contractors must provide additional documentation demonstrating their action-oriented programs and solutions.

Why does OFCCP matter?

OFCCP plays a vital role in protecting American workers by ensuring that contractors who do business with the government follow the promise of equal opportunity. OFCCP’s jurisdiction covers 120,000 establishments and 25,000 firms across the nation, employing around 20% of America’s workforce. OFCCP staff works hard to promote diversity, fight discrimination and enforce laws that ensure all employees are treated fairly.

OFCCP also offers job posting services, allowing employers to easily keep up with their OFFCP compliance responsibilities. Combatting pay discrimination is OFCCP’s top focus as race, and gender-based wage disparities continue to exist today. Even after sixty years since its federal anti-discrimination protections were passed. OFCCP is working diligently towards a future free from any form of discrimination in the workplace.

The Bottom Line

OFCCP adding pay equity to its compliance evaluation priorities list is a welcome development. The new focus will help ensure that contractors pay their employees fairly, regardless of gender. As we have seen in recent years, there is still much room for improvement regarding ensuring equal pay for women and minorities. This new priority will help lead to more progress in the fight for fair compensation for all workers.

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