On July 17, 2013, the Office of Federal Contract Compliance Programs (OFCCP) issued a new directive on how to calculate back pay for victims of employment discrimination. The Directive serves at least two purposes. First, it memorializes current practices in the calculation of monetary remedies at OFCCP. Second, it resolves some open questions or variations in the approach to the basic calculation of remedies between the Regions. The Directive is intended to improve consistency in the methods used to calculate back pay. Federal Contractors who have consistently requested more consistency in agency practices from Region to Region should appreciate the issuance of this guidance. However, more guidance also affects the flexibility in remedy negotiations should you ever find yourself in the undesirable position of needing to resolve finding of discrimination against your company.

Basic Principles

The Directive reaffirms the fundamental principle that Federal Contractors can expect back pay to always be a part of make-whole relief where there have been monetary losses. Make-whole relief is relief intended to put victims in the position they would have enjoy