On August 8, 2014, the United States Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a proposed rule requiring federal contractors and subcontractors to submit data on employee compensation, broken down by sex and race. The compensation rule change has been a long-standing agenda issue for the OFCCP. The OFCCP issued an advance notice of proposed rulemaking on the topic back in August 2011, and President Obama issued a memo in April 2014 directing the Labor Secretary to propose the employee compensation rules.
The proposed rule would amend existing regulations to require companies that file EEO-1 reports, have 100 or more employees, and contracts or subcontracts worth $50,000 to file an Equal Pay Report with the OFCCP. The proposed report would be more detailed than the currently-required EEO-1 report, which does not include compensation data. The new report would include summary data on compensation broken down by sex, race, ethnicity, job categories (broad occupational categories like managers, professionals, sales workers and craft workers), and other data points such as hours worked and head counts. Comments must be received by November 6, 2014. For more information on the proposed rules and details regarding submission of comments, see the OFCCP’s “Frequently Asked Questions: Proposed Rule on Requirement to Report Summary Data on Employee Compensation;”