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.