Government contractors are required to perform pay equity audits as part of their affirmation action obligations. Now, the Office of Federal Contract Compliance Programs (OFCCP) has released a new Directive clarifying its authority to access those pay equity audits and confirming that those audits cannot be sheltered as privileged.
A series of Executive Orders requires federal contractors to meet multiple affirmative action obligations. One of the attendant obligations in that process is a requirement for contractors to perform “an in-depth analysis” of their employment practices to determine whether barriers to equal employment opportunity exist. This analysis includes an examination of compensation systems to determine whether barriers to equal employment opportunities exist on the basis of race, gender or ethnicity, as stipulated by federal law, otherwise known as a pay equity audit.[1] If the pay equity audit determines that barriers to equal employment opportunities exist, federal law requires that contractors develop “action-oriented programs” to address the issues.[2]
Now, with this brand-new Directive, OFCCP is (1) establishing how OFCCP reviews contractors’ compliance with their obligation to conduct the pay equity audit; (2) verifying OFCCP’s authority to access and review contractors’ pay equity audits; and (3) confirming that contractors may not claim privilege with respect to those audits:
OFCCP recognizes that federal contractors often retain...
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