OFCCP Issues Directive 310: Guidance on Back Pay Calculations

The Office of Federal Contract Compliance Programs (“OFCCP”) released Directive 310 on July 17, 2013. The Directive provides guidance concerning the calculation of back pay awards by OFCCP in investigations and proceedings involving individual and class allegations of discrimination. Prior to issuing this new directive, the OFCCP relied on back pay principles set out in Title VII of the Civil Rights Act of 1964 or cases interpreting Title VII.

OFCCP often seeks the payment of back pay in connection with conciliation agreements and enforcement proceedings.  Through the payment of back pay, OFCCP is attempting to determine the amount of earnings an affected applicant or employee would have received absent the alleged discrimination.

Directive 310 provides two basic models for computing back pay relief—formula relief and individual relief. Formula relief estimates the back pay award for an affected class, while individual relief computes back pay for a particular individual.

Federal contractors should review their selection and compensation practices to ensure compliance with Executive Order 11246, to eliminate potentially discriminatory practices and thoroughly document legitimate, nondiscriminatory reasons when appropriate.

Click here for more details for full text of the Directive 310.

This information is intended to be educational and should not be considered legal advice on any specific matter.