OFCCP Expands Compensation Discrimination Enforcement

New directive outlines audit procedures and evaluation standards that will likely lead to extensive compensation audits and increased allegations of pay and job assignment discrimination.

On February 26, the Office of Federal Contract Compliance Programs (OFCCP or the agency) issued a directive¹ outlining new enforcement procedures and standards to address systemic compensation discrimination. At the same time, OFCCP published a final notice of rescission of the agency's 2006 compensation standards.² In rescinding the 2006 compensation standards, OFCCP rejected the comments of employer organizations and law firms,³ which argued that the 2006 standards generally took reasonable, judicially approved approaches to the assessment of compensation discrimination under Title VII.