Under Trump Budget, OFCCP’s Focus Remains On Tech And Finance Contractors

by Fox Rothschild LLP

Fox Rothschild LLP

Information technology and financial services companies with federal contracts will continue to be a focus of the Office of Federal Contract Compliance Programs (OFCCP) under the Trump Administration, according to the agency’s fiscal year 2018 proposal. By developing best practices, tech and finance firms can prepare for, and/or mitigate the impact of, a resource-intensive and costly OFCCP audit or enforcement action.

The OFCCP is tasked with ensuring that federal contractors are in compliance with their equal employment opportunity and affirmative action obligations. Under Executive Order 11246, as amended, federal contractors and subcontractors are prohibited from engaging in discrimination on the basis of race, religion, sex, sexual orientation, gender identity, or national origin. Section 503 of the Rehabilitation Act of 1973, as amended, prohibits employment discrimination against individuals with disabilities. Finally, the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, makes unlawful employment discrimination against protected veterans. 

Recently, legislators and policymakers have paid a significant deal of attention to closing the gender pay gap, particularly in highly compensated industries such as information technology and financial services – sectors that compose a significant component of the American economic engine. This attention is also reflected in the OFCCP’s fiscal year 2018 budget proposal. In that proposal, the Trump Administration announced that the OFCCP will establish two “Skilled Regional Centers” to be located in the respective information technology and financial services capitals of the country, San Francisco (Pacific) and New York (Northeast). The Pacific and Northeast Skilled Regional Centers will have, “highly skilled and specialized compliance officers capable of handling various large, complex compliance evaluations in specific industries, such as financial services or information technology.” Like the previous administration, the OFCCP has also declared that it intends on “combating pay discrimination through intensive contractor compliance assistance aimed at educating contractors about their contractual obligations, supporting their voluntary compliance with those obligations, and conducting high quality compliance evaluations.” 

This industry focus is a continuation of the OFCCP enforcement priorities seen in the final years of the Obama administration. By way of illustration, the OFCCP brought suit against a number of technology and financial services giants in President Obama’s final month in office, including a complaint against a multinational banking and financial services company for sex discrimination in compensation, a complaint seeking the disclosure from a global Internet-related technology firm of compensation data as part of a nearly two-year long audit into pay equity practices at the corporation, and a complaint against a computer engineering and database software company asserting “systemic compensation discrimination against women and Asians and African Americans,” among other allegations at its global headquarters.  Recently, in December 2016, the OFCCP settled a claim of pay discrimination with a financial planning company on behalf of 20 black employees in the amount of $128,000 in back wages and interest. In April 2017, the OFCCP and a computer software and services company settled charges of systemic discrimination in the hiring and selection process for engineering positions brought on behalf of a class of Asian applicants in consideration for $1,659,434 in back wages and other monetary relief, including stock options, as well as the extension of job offers to eight eligible class members. In June 2017, the OFCCP settled a claim of hiring discrimination claim for $420,000 in back wages, interest, and benefits brought on behalf of 60 Asian applicants denied associate auditor positions at a global accounting firm.

Despite the climate of deregulation under Trump and the reduction of the OFCCP budget in fiscal year 2018, federal contractors in the information technology and financial services sectors should remain prepared for potential audits and enforcement activity focused on their industries.  To this end, federal contractors should ensure that:

  • compensation is tied to a transparent, merit-based system;
  • discretionary bonuses are heavily scrutinized to prevent a disparate impact on protected classes; and
  • audits assessing hiring and compensation practices are conducted regularly in conjunction with outside counsel.

[View source.]

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.

© Fox Rothschild LLP | Attorney Advertising

Written by:

Fox Rothschild LLP

Fox Rothschild LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.