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OFCCP Revises Directive on Compensation Analysis

Today, August 18, 2022, the Office of Federal Contract Compliance Programs published a revised Directive, “Advancing Pay Equity Through Compensation Analysis,” to clarify its guidance and explain how the agency reviews contractors’ documentation of compliance.

The revised Directive states that in order to determine that a contractor has satisfied its obligation to conduct a compensation analysis, OFCCP requires certain documentation to demonstrate compliance.

Three things to know about the revised Directive:

1. It explicitly reaffirms the agency’s position that it does not require the production of attorney-client privileged communications or attorney work product.
2. It identifies the documentation that OFCCP requires from a contractor to determine that the contractor has satisfied its obligation to perform a compensation analysis.
3. It explains the documentation required from a contractor when its compensation analysis identifies problem areas to demonstrate that it has implemented action-oriented programs.

OFCCP Director Jenny R. Yang provides further insight in her August 18, 2022, blog post.

OFCCP welcomes feedback and identification of areas across the agency’s work where additional guidance or clarification would be valuable. With today’s revised Directive, OFCCP demonstrates its commitment to working with federal contractors to address gender and racial pay inequality.

Protecting Workers. Promoting Diversity. Enforcing the Law.