Introduction

The Office of Federal Contract Compliance Programs (OFCCP) published multiple FAQs on July 23, 2019 to provide further guidance to federal contractors in their efforts to understand and comply with anti-discrimination regulations. 'Practical Significance in EEO Analysis' attempts to provide clarity on when a statistically significant disparity may or may not be practically significant and, therefore, actionable. While the FAQs indicate that the content applies to employment outcomes in general, the primary focus appears to be on employment selections. However, the same principles apply to other employment outcomes such as compensation disparities. While discussions regarding practical versus statistical significance are not new, the issue has become more important as companies have