OFCCP Proposes Rules Ratcheting Up Contractors’ Pay Reporting Obligations

Responding to President Obama’s Presidential Memorandum dated April 8, 2014, the Department of Labor issued a Proposed Rule authorizing the Office of Federal Contractor Compliance Programs (“OFCCP”) to collect summary compensation data from companies with more than 100 employees that hold federal contracts and first-tier subcontracts worth $50,000 or more for 30 or more days.  The Proposed Rule is open for comment until November 6, 2014.

The Proposed Rule would amend the implementing regulations for Executive Order 11246 by requiring covered contractors and subcontractors to submit an Equal Pay Report.  Employers will have to report employee compensation data by sex, race, ethnicity, and job category as well as provide additional information regarding hours worked.

The Proposed Rule also creates two different filing periods for the EEO-1 and the Equal Pay Report.  Unlike the EEO-1, which presents a snapshot of data in the current year, the Equal Pay Report will cover a full year.  Accordingly, by requiring covered contractors and subcontractors to file total W-2 earnings paid as of the end of each calendar year, the Equal Pay Report cannot be filed simultaneously with the EE0-1, which must be filed by September 30th of the current survey year.  The proposed rule suggests using a January 1 to March 31 of the following year for filing the Equal Pay Report.

Bottom Line

The OFCCP’s Proposed Rule specifically seeks comments on the impact of creating two different filing periods for the EEO-1 and the Equal Pay Report.  If you are interested in reading the full text or commenting, click here. Otherwise, stay tuned for updates.