Last month we reported that the OFCCP released a new compensation directive. There is some speculation about this new directive and how it will affect contractors during audits. According to the Institute for Workplace Equality, Craig Leen recently said that the OFCCP would need stronger statistics in the absence of anecdotal evidence of compensation bias. Leen stated that “stronger statistics” meant a standard deviation of at least three. It is currently unclear if the OFCCP will implement this rule during audits, but it would be significant for contractors because the OFCCP typically uses two standard deviations.
According to Direct Employers, Leen stated that the OFCCP plans to eventually audit 100% of federal contractors over a five-year cycle. Leen did not provide details about how this plan would be accomplished or when exactly the cycle will start. We will keep you updated with any additional information we learn about this topic.