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Government Contractor Compliance & Regulatory Update

OFCCP Expected to Issue Pay Data Tool and Retaliation Proposed Rules Later this Year

Posted in Compensation, OFCCP

According to the Labor Department’s semiannual regulatory agenda, released on May 23, 2014, the Office of Federal Contract Compliance Programs (OFCCP) plans to issue proposed rules regarding federal contractor compensation practices later this year.  The rules are intended to create more transparency and combat pay discrimination in accordance with Executive Order 13665 and a presidential memorandum, both issued last month.

Executive Order 13665, issued on April 8, prohibits federal contractors from retaliating against employees who discuss their compensation.  The presidential memorandum, simultaneously released by the White House, directs the Labor Department to issue regulations requiring federal contractors to report employee compensation data, including data by race and sex, annually.

According to the Labor Department’s Spring 2014 regulatory agenda, it is anticipated that OFCCP will issue the Notice of Proposed Rulemaking (NPRM) for the pay data directive in August 2014 and the NPRM for Executive Order 13665 in September 2014.  The agenda is available here.