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Public comment period for OFCCP Equal Pay Report proposal extended to January 5

November 11th, 2014  |  Cynthia L. Hackerott

Stakeholders now have an additional period of 60-days to comment on an OFCCP proposal that would require covered federal contractors and subcontractors to submit an annual “Equal Pay Report” on employee compensation, the agency announced on October 31, 2014. The proposed new report would apply to companies that file EEO-1 Reports, have more than 100 employees, and hold federal contracts or subcontracts worth $50,000 or more for at least 30 days. The comment period opened when a Notice of Proposed Rulemaking (NPRM) was published in the Federal Register on August 8, 2014 (79 FR 46562- 46606); corrections to the NPRM were published on August 20 (79 FR 49260-49261). A notice of the comment period extension was published in the Federal Register on November 5 (79 FR 65613-65614). The original deadline for comments was November 6, but, with the extension, the new deadline is January 5, 2015.

Proposed reporting requirements. Current regulations require that all employers in the private sector with 100 or more employees, and some federal contractors with 50 or more employees, annually file the EEO-1 Report with the Joint Reporting Committee (a joint committee consisting of the EEOC and the OFCCP). The OFCCP’s proposal would revise its regulations at 41 CFR Part 60-1, which set forth the reporting obligations of covered federal contractors and subcontractors under Executive Order 11246. Specifically, the proposal would amend the regulation at 41 CFR 60-1.7 to require that:

• covered federal contractors and subcontractors submit to the OFCCP two columns of additional information to the EEO-1 Report in a new Equal Pay Report. Covered employers would submit the following three pieces of information: (1) the total number of workers within a specific EEO-1 job category by race, ethnicity and sex; (2) total W-2 wages defined as the total individual W-2 wages for all workers in the job category by race, ethnicity and sex; and (3) total hours worked, defined as the number of hours worked by all employees in the job category by race, ethnicity and sex.

• covered federal contractors and subcontractors electronically submit the proposed Equal Pay Report using a web-based data tool. The OFCCP states that the web-based portal for reporting and maintaining compensation information will be designed to so that it “conforms with applicable government IT security standards.”  The agency will also establish a process for requesting an exemption to the electronic filing requirement.

• contract bidders make a representation related to whether they currently hold a federal contract or subcontract that requires them to file the proposed Equal Pay Report and, if so, whether they filed the report for the most recent reporting period.

The filing period for the proposed Equal Pay Report would be January 1 to March 31 of each year. The report would cover total W-2 Wage and Tax Statement earnings and total work hours for the calendar year, January 1 – December 31, for all employees included in the contractor’s most recent EEO-1 Report(s) (which are due annually on September 30).  The number of employees would include all employees whether or not they are still employed by the contractor on December 31st.

A webpage with FAQs and other information on the proposal is available at: http://www.dol.gov/ofccp/EPR.