Professional Service Agreement

Opinion Letter Encourages Federal Contractors to Submit Pay Analysis Groups for Review and Feedback

July 30, 2019

The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has issued an opinion letter detailing how federal contractors may work collaboratively with the OFCCP when developing pay analysis groups (PAGs) for conducting compensation analyses. The collaborative effort, however, will not result in any guarantees about future compliance evaluations. Specifically, the letter, explains that "contractors have the opportunity to submit their PAG structure for review and to receive feedback from OFCCP, which OFCCP would take into account in future compliance evaluations." However, the OFCCP fell short of saying that it would conclusively agree to rely on specific, predetermined PAGs in all future compliance evaluations because there may have been material changes to factors the agency considered in its initial evaluation of the contractor's PAGs.