OFCCP Issues Directive 310: Guidance On Back Pay Calculations

The Office of Federal Contract Compliance Programs ("OFCCP") released Directive 310 on July 17, 2013.  The Directive provides guidance concerning the calculation of back pay awards by OFCCP in investigations and proceedings involving individual and class allegations of discrimination.  This is the first time OFCCP has addressed the computation of back pay award since the Federal Contractor Compliance Manual ("FCCM"), a field guide for compliance officers.  Although the new Directive essentially tracks the guidance in the FCCM, it changes OFCCP's focus in computing back pay from individual relief to class-wide relief.

Calculation of Back Pay

OFCCP often seeks the payment of back pay in connection with conciliation agreements and enforcement proceedings.  In essence, through the payment of back pay, OFCCP is attempting to determine the amount of earnings an affected applicant or employee would have received absent the alleged discrimination. OFCCP defines earnings