DOL Proposes Rule to Collect Summary Pay Data from Federal Contractors

This would allow the Office of Federal Contract Compliance Programs to collect summary employee pay and demographic data using existing government reporting frameworks.

The U.S. Department of Labor has issued a 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. This requirement would apply to companies that file EEO-1 reports, have more than 100 employees, and hold federal contacts or subcontracts worth $50,000 or more for at least 30 days. Through the Equal Pay Report, OFCCP would be able to collect summary employee pay and demographic data using existing government reporting frameworks.

This comes after President Obama signed a presidential memorandum instructing the secretary of Labor to propose a rule within 120 days to collect summary compensation data from federal contractors and subcontractors. The proposed rule reflects criteria set forth by the president to maximize the efficiency and effectiveness of OFCCP's enforcement programs, minimize the burden placed on federal contractors, and use data to encourage greater voluntary compliance with the law.

The proposed Equal Pay Report also would help OFCCP direct its enforcement resources toward contractors whose summary compensation data suggests potential pay violations.

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