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ARTICLE · 17 MARCH 2022

OFCCP Will Start Demanding Contractors' Internal Pay Equity Audits

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On March 15, 2022, the OFCCP issued its first directive since President Biden took office. Directive 2022-01 (the "Directive") addresses contractors' obligations to analyze their compensation systems...

United StatesGovernment, Public Sector
Guy Brenner
Guy Brenner
Megan Childs
Megan Childs
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On March 15, 2022, the OFCCP issued its first directive since President Biden took office. Directive 2022-01 (the "Directive") addresses contractors' obligations to analyze their compensation systems and to turn over such analyses when under audit.

The Directive begins by highlighting contractors' obligations under 41 C.F.R. § 2.17(b). That regulation provides that contractors "must perform in-depth analyses" of their "compensation system(s) to determine whether there are gender-, race-, or ethnicity-based disparities." The regulation does not prescribe what such analyses must entail, only that they must "determine whether and where impediments to equal employment opportunity exist." Where such impediments exist, contractors are required to "develop and execute action-oriented programs designed to correct any problem areas." 41 C.F.R. § 217(c).

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