The OFCCP Wants to See Your “Pay Equity” Analyses (Directive 2022-01)
Summary
The OFCCP has gone all-in with their new compensation directive announcing that the agency intends to request, and expects to receive without pushback, contractors’ “pay equity audits” prepared in response to 41 C.F.R. The OFCCP now officially takes the position that failure to provide the agency with copies of “pay equity audits” (analyses) upon request will be considered “an admission of noncompliance.” Can They Do That? Then contractors can perform any additional, more refined analyses they like based on those initial results to determine the extent of the organization’s potential legal exposure. There is no basis in the OFCCP’s regulations for a violation because a compensation analysis was deemed to be “insufficient.” The lawsuits are surely coming on this one and it is quite possible that a federal judge will soon stay the implementation of Directive 2022-01. As discussed, the path of least resistance is likely to slap together a simple spreadsheet comparing average pay among various groups specifically for disclosure to the federal government (if asked).
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