OFCCP - EEO Compliance Information (December 2012)

1. The OFCCP’s New Compliance Developments
Focuses
 Compensation disparities (fair pay)
 Employment of veterans and individuals with disabilities
Respond to Audit Letter
 Keep record once letter is received
 30 days to submit information to respond
Adverse Impact
 Minority vs. Non-Minority
 Individual Race Groups vs. Whites
 Favored vs. Non-Favored (Groups AA vs. Whites, etc.)
*Perform salary equity analysis and be able to defend disparities
Pending Law
“New Scheduling Letter”
Policies
 FMLA
 Pregnancy Leave
 Accommodations – Religious Observances
More Specific Demographic Information
 Total each minority sub-group (rather than all minorities)
 Data both job groups and job title
More Specific Compensation
(February 1st Annually)
 All employees (FT/PT/Temp./Contractors/Etc.
 Gender/Race & Ethnicity Information (hire date and job group)
 Other compensation (adjustments and salary)
 Any documentation related to compensation practices
VETS 100-A & EEO-1
(3 Year Retention Records)
Statistical Significance
 Significant differences in compensation
 Two standard deviations 5% difference
 Difference of two standard deviations or more are statistically significant
 Rare outcome

2. The OFCCP’s New Compliance Developments
Multiple Regression Analysis
 Employees differ
 Multiple regression examines differences in average pay controlling for other factors
• Comparisons are within job groupings
• Control for differences in experience, etc.
Compensation Audits
 2% “smell test” – identify differences in job title/sub groups
 Submit follow-up data
 Regression analysis by job title
 “Individual” compensation claims vs. systematic claims
 Disparity (Job Group/Title/Pay Grade)
Proposed Laws
 Proposed regulations regarding Veterans (placement goals)
 Proposed regulations regarding individuals with disabilities (placement goal – stringent
placement & accommodation(s).)
 Compensation collection tool