Effective 18 August 2022, the Office of Federal Contract Compliance (OFCCP) revised Directive 2022-01 on “Advancing Pay Equity Through Compensation Analysis” (the Revised Directive) to provide further explanation of how OFCCP will evaluate federal contractors’ compliance with compensation analysis¹ obligations. The Revised Directive also clarifies OFCCP’s authority to access documentation relating to these analyses. It explains that OFCCP will not require contractors to produce privileged attorney-client communications or attorney work product. It also articulates what information contractors will be required to provide in situations where they intend to assert privileges over the requested work product.

The Revised Directive’s clarification of what documents OFCCP can obtain regarding compensation analyses is a welcome response to requests by the federal contractor community and legal practitioners in the area, including K&L Gates in previous alerts here and here. This update provides an overview of OFCCP’s new guidance as to what compensation-analysis documentation federal contractors should provide to OFCCP throughout the audit process.

Desk Audits

Contractors selected for audit may be asked to provide OFCCP with information and data regarding hiring and compensation disparities. OFCCP reviews this information via a “desk audit” to determine if a contractor is meeting its obligations, and looks broadly at a contractor’s workforce to identify any patterns of...

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