Contractors Prepare: The Proposed Rescission of OFCCP Compensation Standards

At last summer's National Industry Liaison Conference, Patricia Shiu announced that the OFCCP would be rescinding the Compensation Standards and Guidelines. Since then, the OFCCP has been relatively silent on the pending rescission - that is, until last week. On Monday, a Federal Register Notice provided some additional detail into the underlying reason for the rescission. The OFCCP stated that the Standards have limited their ability to effectively investigate, analyze and identify compensation discrimination. The OFCCP believes that the current Standards, which are based on multiple regression analysis, are too rigid. The Agency is planning to "re-institute flexibility in its use of investigative approaches and tools." With respect to the Guidelines, the OFCCP proposes to disseminate guidance via webinars, the Frequently Asked Questions (FAQ) section of its website, etc., rather than through the issuance of a Federal Register notice. In this week's installment of The Proactive Employer Podcast,we'll be discuss the reasons for the proposed rescission, possible replacement analysis methods, how the rescission might affect the contractor community with respect to the audit process and the findings of discrimination, and what employers should do now to prepare.