U.S. Labor Department Proposes Rule to Collect Summary Pay Data from Federal Contractors

WASHINGTON (Aug. 6, 2014) — The U.S. Department of Labor has 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. Under the terms of the proposal, this requirement would apply to companies that file EEO-1 reports, have more than 100 employees and hold federal contracts or subcontracts worth $50,000 or more for at least 30 days. Through the Equal Pay Report, OFCCP would be able to collect summary employee pay and demographic data using existing government reporting frameworks.

President Obama signed a presidential memorandum on April 8 instructing the secretary of labor to propose a rule within 120 days to collect summary compensation data from federal contractors and subcontractors. The proposal tabled at the Federal Register reflects criteria set forth by the president to maximize the efficiency and effectiveness of OFCCP’s enforcement programs, minimize the burden placed on federal contractors and use data to encourage greater voluntary compliance with the law. The proposed Equal Pay Report would also help OFCCP direct its enforcement resources toward contractors whose summary compensation data suggests potential pay violations.

The rule was published in the Federal Register Aug. 8, and all comments must be received by Nov. 6, 2014. To read and comment on the proposed rule, click here.

OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp.