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ARTICLE · 18 MARCH 2022

OFCCP Takes Aim At Pay Equity Audits In New Directive

Ogletree, Deakins, Nash, Smoak & Stewart
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In the first internal agency directive during Jenny Yang's tenure as director, the Office of Federal Contract Compliance Programs (OFCCP) issued Directive 2022-01, entitled "Pay Equity Audits" on March 15, 2022.

United StatesAccounting and Audit

In the first internal agency directive during Jenny Yang's tenure as director, the Office of Federal Contract Compliance Programs (OFCCP) issued Directive 2022-01, entitled “Pay Equity Audits” on March 15, 2022.

OFCCP's directive informs contractors that the regulatory requirement in 41 C.F.R. Section 60-2.17(b) to “perform in-depth analyses of … [c]ompensation systems to determine whether there are gender-, race-, or ethnicity-based disparities” requires annual quantitative “pay equity audits.” The agency goes further in claiming that “contractor transparency” requires that contractors provide these pay equity audits to OFCCP upon request.

Highlights of Directive 2022-01 include the following:

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