OFCCP Releases Final Rules on Guidelines for Evaluating Systemic Compensation Discrimination and Contractor Self-Evaluation Pay Practices

Last Friday, June 16, 2006, the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) released its finalized Interpretive Standards for Systemic Compensation Discrimination Under Executive Order 11246 and Voluntary Guidelines for Self-Evaluation of Compensation Practices for Compliance with Executive Order 11246.

To a large extent, the final interpretive standards and voluntary guidelines closely follow the language contained in the proposed text of both rules that were issued in November 2004. In response to public comment, however, the OFCCP has made minor revisions to both rules. The interpretive standards and voluntary guidelines go into effect immediately. The OFCCP rejected calls for a grace or "pilot period," saying that it is not "requiring" contractors to implement the self evaluation standards as they are entirely voluntary and also that it has been using the Interpretive Standards for several years. A more detailed discussion of the proposed rules can be found in our March 28, 2005 client alert.