In November 2019, OFCCP announced it would not “request, accept or use” Component 2 pay data submitted by employers as part of EEOC’s previous pay data collection reporting obligation.  OFCCP’s notice followed on the heels of EEOC’s notice that it would not be seeking renewal of approval to collect pay data beyond 2017 and 2018.

OFCCP is now revisiting it’s November 2019 decision.  In a Notice to be published in the federal register on September 2, 2021 OFCCP notes it

believes the position taken by [OFCCP] in the November 2019 notice was premature and counter to the agency’s interests in ensuring pay equity.

The Notice explains that OFCCP “intends to devote further agency resources to evaluate the data’s utility because the joint collection and analysis of compensation data could improve OFCCP’s ability to efficiently and effectively investigate potential pay discrimination.”

To be clear, OFCCP has not gone as far as to say that it is in fact using the pay data for any enforcement activities, only that it is studying the utility in doing so.

We, like you, will be interested to see what conclusions the Agency comes to following its review.

 

 

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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.