One of the biggest changes to OFCCP’s recently revised scheduling letter is the requirement that employers must now submit employee-level pay data at the outset of an OFCCP audit.  As the Agency puts 2,500 establishments on notice of upcoming audits, and in response to contractor questions and requests for guidance on the new scheduling letter, OFCCP has published thirteen FAQs addressing the requirements of pay data submissions under Item 19 of the new letter.

Specifically, OFCCP provided guidance on the employee population employers need to include in Item 19 submissions, stating

Contractors must provide employee–level compensation data for all of the employees included in the AAP workforce analysis/organizational display.   The term “employee,” as used in the AAP regulations in 41 C.F.R. part 60–2, is broad enough to include part–time, temporary and full–time employees. . . .Item 19 seeks compensation data for “contract, per diem, or day laborers” as categories of temporary employees on the contractor’s payroll.

OFCCP also clarified the time frame of compensation data which employers should report, stating

For all employees, compensation must include base salary and/or wage rate and hours worked in a typical workweek.  Other compensation or adjustments to salary such as bonuses, incentives, commissions, merit increases, locality pay or overtime should be identified separately from base salary/wage for each employee.

In a later FAQ OFCCP specifically addressed the issue of “other compensation”, stating

for each employee in the workforce analysis/organizational display contractors should provide the actual amount paid in other compensation or adjustments to salary during the 12–month period preceding the date of the analysis/display.

Additionally, OFCCP confirmed that

OFCCP will accept AAPs and supporting records that reflect the five race and ethnicity  categories outlined in 41 CFR Part 60–2 or the seven used in the EEO–1  Report.

As OFCCP undertakes audits under the revised scheduling letter it may put out additional guidance, so stay tuned for further updates.

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Photo of Laura A. Mitchell Laura A. Mitchell

Laura Mitchell is a principal in the Denver office of Jackson Lewis P.C. and leads the firm’s Workplace Analytics and Preventive Strategies Pay Equity subgroup. She partners with employers to evaluate, develop and implement policies and practices that ensure workplace fairness while mitigating…

Laura Mitchell is a principal in the Denver office of Jackson Lewis P.C. and leads the firm’s Workplace Analytics and Preventive Strategies Pay Equity subgroup. She partners with employers to evaluate, develop and implement policies and practices that ensure workplace fairness while mitigating legal risk. Laura is a guiding force in the firm’s most specialized and technical practice areas where she leverages an analytics-focused approach to partner with her clients in building legally compliant programs around which they can anchor their workplaces achieving productivity and stability.

Laura understands that creating a competitive advantage for employers in today’s workplace involves using a data-driven approach to counsel companies on the development of proactive and equitable non-discriminatory practices in hiring, promotions, separations and pay—and where advancements in technology can create both opportunities for efficiencies and risk that can be measured. Committed to putting her clients’ organizational goals first and foremost while balancing legal risk, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication. Staying the course with employers across their organizational journey while balancing legal compliance obligations throughout their employees’ lifecycle ensures Laura’s position as a go-to resource.

Laura works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize the combined vision of legal compliance, increased productivity and economic growth enhanced by a focus on pay equity.  As part of the pay equity journey, she advises employers on the evolving pay transparency landscape, working to align compliant practices with the practical realities of the business world.

Laura partners closely with government contractors to understand, implement and demonstrate compliance with their EEO regulatory and compliance obligations. She also works closely with non-government contractor clients to conduct risk assessments of their programs, policies, and training to align with federal and state anti-discrimination requirements.