OFCCP Modifies Multi-tiered Compensation Analysis: New Method Broadens Platform for Findings of Disparity

The Office of Federal Contract Compliance Programs (OFCCP) has modified its methodology for evaluating contractor compensation practices. Compensation disparities affecting minorities and women continue to be a principal focus of the OFCCP’s compliance reviews. The Agency last published guidance regarding compensation evaluation procedures in June, 2006 when it adopted a three-phase approach to its process. The updated method will continue to follow this multi-phased approach, however, several of the models used to evaluate compensation have changed.