On Aug. 18, the Office of Federal Contract Compliance Programs (OFCCP) published a revised Directive 2022-01: “Advancing Pay Equity Through Compensation Analysis,” which provides notable changes pertaining to federal contractors.

First, the revised directive itself uses the phrase “compensation analysis” instead of “pay equity audit,” which had been used in the original directive to reference contractors’ obligations under 41 CFR 60-2.17(b)(3). According to Jessy R. Yang, director of the OFCCP, this change was made to “to avoid any confusion regarding the nature of a contractor’s obligations.”

Second, the new directive outlines the documentation that contractors will be required to produce to demonstrate that they have satisfied the requirement to conduct compensation analyses; and also to demonstrate that they have put into practice “action-oriented programs” if the compensation analysis conducted identifies potential areas of concern.

Third, the directive reasserts the OFCCP’s position that it does not require privileged attorney-client communications or attorney work product to be produced.

Compensation Analysis Documentation: What Is Now Required?

In the revised directive, the OFCCP lists the documentation required to show that the contractor has met its obligation to perform a compensation analysis to evaluate its compensation system for race-, gender-, and ethnicity-based disparities. At a minimum, the contractor must provide documentation demonstrating the...

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