OFCCP To Require Federal Contractors To Report Wage Information

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The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has issued a notice of proposed rulemaking, which, if adopted, would amend regulations under Executive Order 11246 to require certain Federal contractors and subcontractors to supplement their Employer Information Report (EEO-1 Report) with information on compensation paid to employees, as contained in IRS Form W-2s, by sex, race, and ethnicity, among other information.  The proposal would apply to Federal contractors and subcontractors that are required to file an EEO-1 Report, have more than 100 employees, and a contract worth $50,000 or more.  The OFCCP intends to use the data collected to identify industry compensation standards and then, pursue enforcement activities against employers where the data suggests compensation discrimination.  As previously reported here, Executive Order 11246 was recently amended to prohibit Federal contractors and subcontractors from discriminating based on sexual orientation and gender identity, in addition to prohibiting discrimination based on race, color, religion, and national origin.  The latest proposal regarding reporting compensation information is subject to further public comment and revision, and we will update you if and when the proposal is finalized.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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