OFCCP Will Require Contractors to File Equal Pay Report

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Executive Summary:  Implementing the President's April 2014 Memorandum directing the Department of Labor to develop a data collection tool to advance the goal of pay equity, the Office of Federal Contract Compliance Programs (OFCCP) has published a Notice of Proposed Rulemaking (NPRM) requiring certain federal contractors and subcontractors to submit an annual Equal Pay Report on employee compensation. The NPRM was published in the August 8, 2014 Federal Register. More information is available on the OFCCP's website at: http://www.dol.gov/ofccp/EPR.html.

The NPRM follows the plans announced by the OFCCP in August 2011 to develop and implement a compensation data collection tool to collect information on salaries, wages and other benefits paid to employees of federal contractors and subcontractors. The NPRM amends the EEO-1 reporting regulation to require covered contractors and subcontractors (those with more than 100 employees who have federal contracts or subcontracts of $50,000 or more are) to provide summary information on compensation paid to employees, as contained in the Form W-2 Wage and Tax Statement (W-2) forms, by sex, race, ethnicity, and specified job categories, as well as other relevant data points such as hours worked, and the number of employees.

The OFCCP has stated that the Equal Pay Report will help it direct its enforcement efforts toward contractors whose summary compensation data suggests potential pay violations. The agency will accept comments on the NPRM through November 6, 2014.

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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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