Non-Discrimination in Compensation; Compensation Data Collection Tool
The opportunity for input on the advance notice of this important rule proposed by the OFCCP is NOW! On August 10th, the OFCCP posted an Advance Notice of Proposed Rulemaking for the development of a "Compensation Data Collection Tool" that is intended to foster the priority issue of the OFCCP to "eliminate compensation discrimination by Federal Contractors".
There have been 836 comments posted as of 10/4/2011. Seven of these comments were posted August 15 through August 31, and are somewhat non-supportive of the development of the tool. Beginning on September 23rd, there were 829 postings that appear to be overwhelmingly supportive. All comments support non-discrimination in compensation, while few seem to address the nature of data that would be most useful for analysis.
To review the docket on the proposed rule, review comments already submitted, and/or submit a comment click here.
Some questions to ask when considering your comments:
Is this another version of the EO Survey?
A copy of the EO Survey is included in the docket folder for this ANPRM as a piece of Supporting and Related Material. Additionally, the supplementary information portion of the ANPRM reviews the history of the EO Survey which was designed, in part, to be a tool "to predict non-compliance and to promote contractor self evaluation". Ultimately, "it was concluded that the EO Survey had little predictive value as a tool for indicating discrimination or non-compliance". OFCCP rescinded the EO Survey in 2006. The EO Survey had the objectives of improving resource allocation by the Federal government through a tiered review process and improving compliance with equal employment opportunity requirements through self-awareness and self-evaluation. The
"Compensation Data Collection Tool's" goals are more broad and far-reaching.
"Compensation Data Collection Tool's" goals are more broad and far-reaching.
The stated purposes under consideration for the "Compensation Data Collection Tool" are:
- Screeening Tool: "to provide insight into potential problems of pay discrimination by contractors that warrant further review or evaluation by OFCCP or contractor self-audit."
- Research: "to conduct analysis at the establishment level, as well as identify and analyze industry trends Federal contractors' compensation practices and potential equal employment-related issues."
- Compensation Only Reviews: "to develop indicators for identifying potential noncompliance by contractors and executing OFCCP's authority related to compensation discrimination." "The data collected through this tool may be used to identify contractors for compensation focused reviews as well as full compliance reviews."
- New Contractors and Targeting Tool: "requiring businesses that are bidding on future contracts to submit compensation data as part of the Request for Proposal process ... [and] for post-award compliance reviews."
Is it possible to design a tool that will effectively evaluate all compensation practices for all Federal contractors in all industries for all types of positions?
The OFCCP ANPRM on the "Compensation Data Collection Tool" asks for detailed responses from contractors to 15 questions in order to assist in the design of the tool, for instance:
- Question 1 asks what data should be collected to identify potential discrimination and offers a non-exhaustive list of data categories for consideration
- Question 3 asks which elements of compensation should be collected and offers a list well beyond the traditional OFCCP analysis of base pay, but includes stock options, benefits packages, commissions, and bonus awards - extremely confidential data. Our human talent is our greatest resource, and these are some of the tools employers utilize to attract and retain that talent
- Also included are questions to develop a method for understanding Federal Contractors company-wide compensation practices.
Is an additional data collection tool necessary? Who will have access to the database and the information contained therein? How will the confidentiality of the data be protected?
The current compliance methods employed by the OFCCP have resulted, as cited by Director Shiu at the National ILG Convention, in almost $25 million in back wages and interest paid to victims under the Obama administration. Perhaps continued diligent compliance enforcement coupled with greater outreach and education will continue to yield positive results for victims and increase the awareness of the necessity of compliance.
For information on proactive compensation evaluations or other Affirmative Action Plan processing services offered by THOMAS HOUSTON associates, inc., call 1-800-330-9000 or click here to schedule a convenient time to receive a call from one of our Affirmative Action Compliance Consultants.
