Government Contracts Monitor

Short Take: OFCCP Proposes New Equal Pay Report Regulations

August 12, 2014

On August 8, 2014, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs published new proposed regulations in the Federal Register to amend and supplement existing 41 C.F.R. § 60-1.7. 79 FR 46561. The proposed regulations will require contractors and subcontractors with more than 100 employees and contracts or subcontracts valued at more than $50,000 over a performance period of more than thirty days to “provide summary data on the compensation paid to employees by sex, race, ethnicity, specified job categories, and other relevant data points.” Contractors will be required to provide this information via OFCCP’s web-based filing system. Contractors will be generally required to retain records of their equal pay reports for “a period of not less than two years from the date of the making of the report.” According to the proposed regulations, failure to file the required equal pay report may subject contractors and subcontractors to penalties such as contract termination, suspension, and/or debarment. OFCCP is accepting comments on its proposed regulations until November 6, 2014.