New Affirmative Action Proposal for Federal Contractors

Aug 25 2014 - Discrimination - Gail Cecchettini Whaley

The U.S. Department of Labor (DOL) recently announced a proposed rule requiring federal contractors and subcontractors to submit an annual “Equal Pay Report” on employee compensation to the Office of Federal Contract Compliance Programs (OFCCP).

This report would apply to companies that:

  • File the EEO-1 report;
  •  Have more than 100 employees; and
  •  Hold federal contracts or subcontracts worth $50,000 or more for at least 30 days.

President Obama directed the DOL to come up with a compensation data collection plan. The presidential directive came out of stated concern over the pay differential between working men and women. The Equal Pay Act prohibits employers from compensating men and women differently for the same work.

The proposal would require covered contractors to include the following three pieces of information:

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

Any comments to the proposed rule must be received by Nov. 6, 2014. Visit this DOL page to to read and comment on the proposed rule.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

CalChamber members can visit the HR Library’s Affirmative Action Reporting page to learn more about reporting requirements.

Not a member? Learn more about how HRCalifornia can help you.

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