Aligns with Executive Order Proposing Pay History Ban for Federal Contractors
Marking Equal Pay Day, on March 15th the Office of Federal Contract Compliance Programs (OFCCP) issued a new directive to promote greater contractor attention concerning the proactive and effective use of pay equity audits to identify barriers to equal pay in their pay-setting and employment practices. The directive aligns with the Executive Order on Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency also signed on March 15th by President Biden. The Executive Order directs the Federal Acquisition Regulatory Council, in consultation with the Department of Labor, to consider proposing rules limiting or prohibiting federal contractors from seeking and considering information about job applicants’ and employees’ existing or past compensation when making employment decisions.
OFCCP’s directive also makes clear that if the agency identifies concerns about the contractor’s compensation practices during a compliance evaluation, it may request the contractor’s pay equity audit to verify the contractor’s compliance with its obligation to conduct an annual in-depth analysis of its compensation practices.
For AGC Affirmative Action/EEO resources, visit AGC’s Labor & HR Topical Resources library and select “EEO” as the main category and “Affirmative Action/EEO” as the subcategory. You must be logged in as an AGC member to access the materials. Also, don’t miss out on the upcoming 2022 HR & Training Conference where we will host a pre-conference Federal Contractor HR Workshop.
For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.