Jenny Yang was appointed as the new Director for the Office of Federal Contract Compliance Programs on January 20, 2021 by President Biden’s administration. Since this appointment does not require Senate confirmation, it went into effect immediately. This move will require federal contractors to increase pay equity awareness and enforcement based on Director Yang’s Equal Employment Opportunity Commission (EEOC) experience with the Obama administration from 2013 to 2018.
During her EEOC tenure, Ms. Yang was a strong proponent for pay equity and closing the gender wage gap, as she directed the Obama administration’s effort to collect pay data from federal contractors and other employers through Component 2 of the EEO-1 form. Although the Trump-era OFCCP passed on its intention to review Component 2 data, the Biden OFCCP under Director Yang can be expected to analyze this data in search of potential gender-based, or other, pay disparities.
Job valuing processes based on proven compensable factors will rebound to validate job comparable worth. Pay and job worth inequities for gender, race and other protected groups recognized by the federal government will be revealed by EEO-1 Component 2 data submitted to the EEOC.
Employers need to conduct on-going job valuing assessments and employee pay analysis studies in preparation for forthcoming Biden administration OFCCP and EEOC pay equity compliance audits and lawsuits.