EQUAL PAY Focus by DOL, EEOC and OFCCP
The current administration has indicated its intention to identify, investigate and address equal pay issues. The DOL, EEOC and OFCCP are working together for greater equal pay results from employer investigations, employee complaints, and class action settlements. As evidence for a more proactive stance, the OFCCP has rescinded its Compensation Standards on investigating pay discrimination and a new directive went into effect February 28, 2013. The focus will be Advancing Equal Pay Enforcement with More Effective and Transparent Procedures for Investigating Pay Discrimination.
Equal pay is a critical issue for workers and their families, and a cornerstone of OFCCP's equal employment enforcement activities. The Office of Federal Contract Compliance Programs (OFCCP) has rescinded restrictions on investigating pay discrimination and announced new guidance for employers and other interested stakeholders. This action is intended to protect workers and strengthen OFCCP's ability to identify and remedy different forms of pay discrimination. Specifically, OFCCP is:
Rescinding two enforcement guidance documents on pay discrimination from 2006 known as the "Compensation Standards" and "Voluntary Guidelines" because they limited OFCCP's ability to conduct full investigations and use every enforcement tool at its disposal to combat pay discrimination.
Aligning OFCCP's analysis of pay discrimination with the principles used to enforce the main federal law against employment discrimination -- Title VII of the Civil Rights Act of 1964 -- just like in all other areas where OFCCP reviews contractor compliance under Executive Order 11246 (such as hiring, promotion or termination), and just as other federal agencies do.
Improving and clarifying OFCCP's compensation investigation program, by providing the procedures, analysis, and protocols OFCCP will utilize when conducting compensation discrimination investigations going forward.
The SHRM HR Voice Public Policy Update stated the following, "The directive appears to be a step back from clearly identified standards. Instead, it allows for broad investigations of all compensation systems and practices. OFCCP may also "examine policies and practices that unfairly limit a group's opportunity to earn higher pay, such as 'glass ceiling' issues, and access to overtime hours, pay increases, incentive compensation, and higher commission or desired sales territories."
For more information and the actual notice, please use the link below:
What does this mean? OFCCP will have more flexibility to analyze compensation of your employees and unexplained disparities.
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