OFCCP Issues Pay Equity Resource

April 13, 2023

What's New

Taking a Proactive Approach to Achieving Pay Equity, a resource recently issued by the OFCCP, reminds federal contractors to discontinue unlawful discriminatory pay policies and practices.

The OFCCP recommends several best practices that employers should follow concerning pay equity. These include: (1) conducting an annual in-depth analysis of compensation systems to determine and identify pay disparities; (2) banning pay secrecy policies; (3) prohibiting reliance on prior salary history; (4) promoting greater transparency in decisions regarding compensation and promotions; and (5) including salary ranges in job postings.

What It Means

The new pay equity resource confirms steps that most CWC members likely already take. It does not change any OFCCP laws or regulations, and it does not create any new obligations for federal contractors and subcontractors.

However, employers should be aware that during the Biden administration, OFCCP has increased its collection of evidence from federal contractors showing that they performed pay equity audits of their compensation systems to search for gender-, race-, and ethnicity-based disparities.

What You Should Do

Employers should periodically evaluate their compensation policies to ensure compliance and assess risk. CWC members can discuss this topic with other members in a Conversation Corner.

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