In a highly anticipated move, the Department of Labor's
Office of Federal Contract Compliance Programs (OFCCP) issued its
new compensation directive on August 24, 2018. Directive (DIR) 2018-05, Analysis of
Contractor Compensation Practices During a Compliance
Evaluation, replaces the Obama-era compensation
guidance DIR 2013-03, Procedures for Reviewing
Contractor Compensation Systems and Practices (referred
to as Directive 307). OFCCP also included a list of 22 Frequently Asked Questions (FAQs) with DIR
2018-05.
Unlike the Bush-era 2006 Compensation Standards and
Voluntary Guidelines (Voluntary Guidelines), DIR 2018-05 was not
approved through notice and comment rulemaking and, therefore, does
not qualify as an official OFCCP regulation. Contractors should
nonetheless consider this new guidance, along with OFCCP's Federal Contract Compliance Manual, the
standard operating procedures for compensation-related compliance
evaluations, as compliance officers (COs) can be
