February 2012

Why OFCCP Audits of Compensation Are Entirely Different From Those Alleging a Failure of Affirmative Action or a Failure To Hire…and the “Tough Row to Hoe” which lies ahead for Both OFCCP and Federal Contractors as to Compensation Audits

Friends: This is my second column for LocalJobNetwork.com discussing OFCCP developments. I appreciate the overwhelmingly generous response to my first column.

This month, I want to discuss why OFCCP’s audits of the compensation federal contractors pay to their employees and of federal contractor compensation systems are very different from OFCCP audits in which OFCCP alleges only a failure of “Affirmative Action” or an unlawful “failure-to-hire” (typically blue-collar unskilled entry-level laborers). The single difference I will identify below, as simple as it is, leads, however, to a totally different mindset among defending federal contractors. This single difference also exposes two unique problems with which federal contractors have to specially grapple in compensation cases. Unfortunately, too, this difference “raises the stakes” for most federal contractors in