OFCCP to analyze EEO-1 compensation data

On September 2, 2021, the Office of Federal Contract Compliance Programs (OFCCP) issued a notice (https://bit.ly/3CCFbl2) announcing it intends to analyze the EEO-1 Component 2 compensation data submitted by employers in 2019. The Component 2 data consists of aggregated employee wage and hours worked data, categorized by EEO-1 classification, race, ethnicity, and sex. The OFCCP will now evaluate whether the data can aid the agency in investigating potential pay discrimination—a priority under the Biden administration—and selecting contractors for compliance evaluations.

The announcement is a reversal of the OFCCP's position regarding Component 2 data during the Trump administration. In 2019, the agency issued a notice stating it would not "request, accept, or use Component 2 data, as it [did] not expect to find significant utility in the data given limited resources and [the data's] aggregated nature." The OFCCP's recent announcement rescinds the 2019 notice, calling it "premature and counter to the agency's interests in ensuring pay equity."

Administration announces $11.25 minimum wage

While the Biden administration is finalizing the regulations to implement its $15 minimum wage for certain federal contractors, it announced that under President Barack Obama's minimum wage Executive Order, covered federal contractors will be required to pay covered employees $11.25 per hour, up from 2021's $10.95 per hour (https://bit.ly/3u1sTiU).

Updated EEO census data available