OFCCP Issues Directive Targeting Pay Equity Audits And Attorney-Client Privilege

On March 15, 2022, the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) issued Directive 2022-01, addressing the obligations of federal government contractors and subcontractors subject to OFCCP jurisdiction to conduct in-depth analyses of their compensation system(s) under 41 CFR 60-2.17(b)(3) and OFCCP's right to access and review contractors' pay equity audits conducted in whole or in part for compliance purposes, even where the audit is conducted at the direction of legal counsel. The Directive, which is the first since Jenny Yang became director more than a year ago, reinforces that pay equity will continue to be a primary focus for OFCCP and puts contractors on notice regarding their compliance obligations and OFCCP's right during audits