OFCCP Issues Revised Directive on Federal Contractor Compensation Compliance
The Office of Federal Contract Compliance Programs (OFCCP) issued a revised Directive on federal contractor compensation compliance clarifying previously released guidance on contractors’ pay equity audits, which the agency has cited as one of its top priorities.DIR 2022-01 Revision 1 (August 18, 2022) replaces the term “pay equity audit” with the term “compensation analysis” to advance pay equity in the workplace; this was done to avoid any confusion regarding the nature of a contractor’s obligations. In addition, the revised Directive:
Reaffirms that OFCCP does not require the production of attorney-client privileged communications or attorney work product to document the compensation analysis.
Lists alternative methods for contractors to submit documentation including:
Providing a redacted version of the compensation analysis, so long as the non-redacted portions include the required facts
Conducting a separate analysis during the relevant AAP period that is not privileged
Generating a detailed affidavit that includes the required facts but does not contain privileged material
See the revised Directive for details; see also the OFCCP Director’s recent blog post on the subject.