Professional Service Agreement

DOL Proposes New Reporting for Federal Contractors

August 27, 2014

It is very likely that many contractors and subcontractors doing business with the federal government will soon be required to submit an annual Equal Pay Report on employee compensation.

On August 8, the Office of Federal Contract Compliance Programs (OFCCP) published a Notice of Proposed Rulemaking that would require contractors and subcontractors with more than 100 employees, and that hold federal contracts worth $50,000 to report on three (3) key items related to compensation. The three items include:

• The total number of workers within a specific EEO-1 job category by race, ethnicity, and sex;
• Total W-2 wages for all workers in the job category by race, ethnicity, and sex; and
• Total hours worked by all employees in the job category by race, ethnicity, and sex.

The proposed report would not collect any information related to individual pay, nor any information on factors such as education and experience that may affect pay. The agency plans to develop an on-line portal similar to the one used for the EEO-1 report for submission of the data. According to the OFCCP proposal the data collected under the new reporting requirement will enable the agency "to direct it enforcement resources toward contractors whose pay data suggests violations." The plan will also release summary data on race and gender by EEO-1 categories to enable contractors to review their individual data in the same manner as OFCCP. Public comments on the proposed rule will be accepted through November 6, 2014.

SESCO will continue to monitor the proposed rulemaking, and advise of any further developments.