OFCCP Proposes Equal Pay Reporting Requirements

The Office of Federal Contract Compliance Programs today issued a notice of proposed rulemaking, which seeks to amend regulations implementing Executive Order 11246, Equal Employment Opportunity. Current OFCCP regulations require all private sector employers with 100 or more employees, and some federal contractors with 50 or more employees, to file an Employer Information (EEO-1) Report annually. The NPRM would amend the regulation at 41 CFR 60–1.7 to require:

  • Employers who file EEO-1 Reports, have more than 100 employees, and a contract, subcontract (or purchase order amounting to $50,000 or more that covers a period of at least 30 days) to submit a new Equal Pay Report to the OFCCP. The EPR must include: (1) the total number of workers within a specific EEO-1 job category by race, ethnicity, and sex; (2) total W-2 wages, defined as the total individual W-2 wages for all workers in the job category, by race, ethnicity and sex; and (3) total hours worked, defined as the number of hours worked by all employees in the job category, by race, ethnicity and sex.
  • Covered federal contractors and subcontractors to submit electronically the proposed EPR using a web-based data tool. The OFCCP states that the web-based portal for reporting and maintaining compensation information will be designed so that it “conforms with applicable government IT security standards.” The agency will also establish a process for requesting an exemption to the electronic filing requirement.
  • Contract bidders to represent whether they currently hold a federal contract or subcontract that requires them to file the proposed EPR and, if so, whether they filed the report for the most recent reporting period.

The proposal would also extend existing agency sanctions to contractors and subcontractors that fail to file timely, complete, and accurate EPRs, and the representation of compliance. Comments on the rule, identified by RIN number 1250–AA03, are due by November 6.

About George Gullo

George Gullo is an attorney editor in the Government Contracts group at Wolters Kluwer Legal & Regulatory U.S. George serves as the principal editor of Cost Accounting Standards Guide and supports all of the group’s print and electronic publications, as well as legal research tools, including the Government Contracts Reporter, Board of Contract Appeals Decisions, and the FAR and DFARS Matrix Smart Charts. With more than 25 years experience in the legal publishing industry, including more than 15 years in the government contracts area, George also has a background in legal and business transactions. He is a graduate of DePaul University College of Law and a licensed Illinois attorney.
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