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

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with…

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with employers to build programs that benefit employees and create a stable, high-functioning workplace. Understanding that an inclusive, values-based culture provides a crucial competitive advantage in the modern workplace, Laura enjoys counseling companies on the development of proactive and equitable pay and diversity practices.

In Laura’s version of the reimagined workplace, attention to human capital issues, especially DEI and pay equity, would be the rule rather than the exception nationwide and she works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize this vision for her clients’ ongoing success. She helps clients understand all issues across the spectrum of their journey, helping to establish regular analyses as well as counseling organizations on implementation and compliance obligations, where applicable. Committed to putting her clients’ organizational goals first and foremost, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication.

Laura also represents companies in OFCCP matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming from OFCCP regulations. She personally oversees the development of hundreds of Affirmative Action Plans for clients each year and is intimately involved in the defense of OFCCP audits. Her approach to compliance is one of facilitation and conciliation while simultaneously advocating in the best interests of her clients.