Legal Alert: OFCCP Proposes Rescinding Systemic Compensation Discrimination Guidance

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The federal Office of Contract Compliance Programs (OFCCP) has issued a Notice of Proposed Rulemaking (NPR) rescinding its 2006 Standards interpreting Executive Order 11246 with respect to systemic compensation discrimination and its Voluntary Guidelines for Self-Evaluation of Compensation Practices. The Notice was published in the Federal Register on January 3, 2011.

EO 11246 requires federal government contractors and subcontractors to provide equal employment opportunity through affirmative action and nondiscrimination based on race, color, national origin, religion, or sex. Systemic compensation discrimination is a pattern or practice of disparate treatment. According to the NPR, the OFCCP is rescinding the Standards because they are too rigid and are inconsistent with the agency's traditional practice of tailoring compensation investigations and analysis to the facts of the case based on Title VII principles.

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