On August 6, 2014, the U.S. Department of Labor (DOL) announced a proposed rule that would require most federal contractors and subcontractors annually to submit Equal Pay Reports on employee compensation to the Office of Federal Contract Compliance Programs (OFCCP). The aim of the proposed rule is to collect summary data on how federal contractors and subcontractors pay their employees, with an eye toward identifying potential gender-based and race-based pay disparities. This marks a significant change in compliance requirements for the federal contractor community because until now, federal contractors were required to disclose compensation data only in OFCCP compliance reviews.
The Equal Pay Report rule comes after President Obama issued a presidential memorandum on April 8, 2014, instructing the Secretary of Labor to propose a rule to collect summary compensation data from federal contractors and subcontractors. The proposed rule would require contractors to provide compensation information for their workforce broken down by sex, race, ethnicity and specified job categories. The rule was published in the Federal Register on August 8, 2014, and all comments must be received by November 6, 2014. After consideration of public comments, the DOL is anticipated to issue a final rule in the first half of 2015.
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