DOL Seeks Public Comment on Proposed Federal Contractor Pay Reporting Rule

The U.S. Department of Labor (DOL) is inviting the public to comment on a newly proposed rule that would require federal contractors and subcontractors to submit an annual “Equal Pay Report” on employee compensation to the Office of Federal Contract Compliance Programs (OFCCP).  The proposal arises from a memorandum President Obama delivered last April instructing the secretary of labor to propose a rule to collect summary compensation data from federal contractors and subcontractors.

The required information would be provided on the contractor’s Employer Information Report (EEO-1 Report). It would include:

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

The proposed rule would apply to companies that have more than 100 employees and hold a federal contract, subcontract or purchase order worth at least $50,000.

The reporting requirement will enable OFCCP to direct enforcement resources toward contractors whose summary compensation data suggests potential pay violations and help OFCCP develop objective industry-based standards for compensation differences.  Public comments must be received by November 6, 2014 and can be submitted by clicking here.  More information and fact sheets are available here.

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