Compensation imageThe Office of Federal Contract Compliance Programs (OFCCP) issued a 150 page;  Notice of Proposed Rule Making (NPRM) that will require covered federal contractors/subcontractors that have more than 100 employees to submit annual payroll information to OFCCP.  The Equal Pay Report on employee compensation will be submitted by covered employers during the first quarter of each year, employers will submit the following three pieces of compensation information for their employees:

  • The total number of workers within a specific EEO-1 job category by race, ethnicity and sex;
  • Total W-2 wages defined as the total individual W-2 wages for all workers in the job category by race, ethnicity and sex; and
  • Total hours worked, defined as the number of hours worked by all employees in the job category by race, ethnicity and sex.

Download Advanced Notice of Proposed Rule MakingOFCCP was clear to state that they will not collect pay information on individual employees or other factors that may influence pay.  The agency also stated that contractor’s data would remain confidential “to the maximum extent permitted under existing law”.  Still to come is the online portal that will be used to collect the data.  OFCCP claims that the web-based portal will meet applicable government IT security standards.  Contractors have always questioned how secure their data will be as private and government systems continue to be hacked.  The OFCCP’s announcement was made on the same day that CNN announced that Russian hackers acquired 1.2 billion user names and passwords. (See CNN Story)OFCCP will clearly use the data collection tool as a means to select federal contractors for future audits, though they have not provided any information to the contractor community as to how the information will be used. Contractors will be allowed 90 days to comment on the NPRM after it has been published in the Federal Register.Career Resources, Inc, will work with their clients and interested parties to collect comments to submit to OFCCP