Affirmative Action and Compensation Programs

Why Should You Attend:

Since 2009, we’ve seen substantive changes that increase virtually every organization’s risk of regulatory and legal challenges when it comes to establishing a compensation methodology including how we set pay decisions. Developing a Sound Compensation System involves a systematic process for gathering, documenting, and analyzing information in order to describe jobs. It is the fundamental piece that underlies the compensation system.

In this session we will discuss the latest compensation enforcement initiatives and focus on the fundamental principles of setting and establishing an equitable pay system that addresses the hidden issues of pay disparity.

We will focus this webinar on What To Expect From The OFCCP in regard to your pay programs. We will take the time to discuss these and other regulatory changes as well as what we can anticipate moving forward.

Learning Objectives:

• Understanding the roles of the DCAA, OFCCP and DOL in compliance.
• The auditing process outlined.
• Recent trends by OFCCP regarding compensation.
• Defining a Compliant compensation program.
• Keys to a compliant program.
• Pay policies and practices that have given rise to pay disparities and potential red flags during an audit.

Areas Covered in the Seminar:

• Compliant Pay System Defined by DCAA, OFCCP, and DOL.
• Compensation program features and data elements.
• Key program features sought by the Auditors.
• DCAA Auditing Objectives.
• Most frequent deficiencies.
• Recent Trends by OFCCP regarding compensation.
• Ledbetter Fair Pay Act.
• Overview of the Findings of the National Equal Pay Enforcement Task Force.
• Reintroduction of the Paycheck Fairness Act.
• Rescission of guidelines, alignment of focus on compensation.
• Recent changes in the evaluation of pay disparities during OFCCP compliance reviews, including the new “tipping point” test.
• OFCCP rulemaking efforts for Proposed Rescission of the Compensation Standards and Guidelines and a new Compensation Data Collection Tool.
• What can you do now to minimize risk?
• Keys to a compliant program.
• Developing a compliant pay process.
• Structure competent compensation regression analyses, including guidance for the creation of appropriate employee groupings.
• Measure factors that influence pay.
• Interpret the results of compensation models.
• Understanding market pricing and its benefits for your program.
• Identify employees whose pay rates have a substantial impact on the statistical outcome.
• Regular check-ups to mitigate risk.

Who Will Benefit:

This webinar is essential for affirmative action officers, leaders and front-line professionals in the areas of EEO compliance and compensation, as well as legal counsel and support staff representing contractors during OFCCP compliance reviews.

• CFOs
• COOs
• Senior Managers, Directors, VPs
• Employee Contracting Organizations
• HR professionals
• Payroll professionals

Instructor Profile:

Cathleen Hampton, is a professional Human Resources consultant with over 25 years of experience. She is a recognized expert in developing and implementing staffing and retention programs that include workforce planning and analysis, along with best-in-class HR technology, sourcing, recruiting and selection methods.

She has been responsible for planning, developing and executing comprehensive strategies for a wide range of client companies, and has broad experience with corporate policy development and program implementation, including affirmative action programs and OFCCP compliance audits.

Ms. Hampton is a dynamic leader who has been instrumental in growing Hampton Resources into a much respected HR Services organization. She oversees diverse engagements where she partners with her clients to develop strategies using the most up-to-date and sound industry trends and practices.

Ms. Hampton serves as the principal coach/mentor for all client activities where she brings a wealth of experience to her clients regarding strategic and business planning, leadership and management development, compliance enhancement, and performance management. She has developed numerous workshops and is a nationally known presenter on topics such as HR and organizational compliance strategies, performance management, organizational and management development, and human capital.

Topic Background:

“Under the Obama administration, [the OFCCP is] taking a much stronger approach to enforcement on compensation discrimination, as part of our effort to, once and for all, end the wage gap between men and women,” as noted by OFCCP Director Patricia A.

This bolder enforcement approach was recently affirmed by a Department of Labor Administrative Law Judge (ALJ). The ALJ ruled that, as part of the desk audit portion of an OFCCP compliance review, the agency was entitled to seek additional data for analyses beyond that which a contractor had submitted in response to the OFCCP’s standard scheduling letter.

In response, the OFCCP has issued a new directive internally to its compliance officers advising them how to evaluate contractor compensation data submitted during a desk audit. Under the new directive, potential compensation discrimination indicators are flagged when the difference in average pay between females and males or minorities and non-minorities is $2,000 or more, or at least two percent (2%).
This trend in the audit process shows the OFCCP’s trend to compare pay by job title or job classification rather than the previous practice of comparing similarly situated employee groupings (SSEGs) or job groups.

When considering what this means for employers, it’s safe to say that the government promises to rigorously enforce the Equal Pay Act, which requires equal pay for men and women for substantially equal work, including salary, overtime pay, bonuses, and all benefits. It also cites Title VII, which, among other things, proscribes pay discrimination based on race, color, religion, sex, and national origin. Berrien noted that “We cannot achieve our national commitment to equal employment opportunity until women are included as equal partners in every workplace, including the federal government” and that “the federal government should be a model employer in every regard—including equal pay.”

Because the $2000/2% test (or even a 5% test) results in more indicators of disparity than prior approaches (such as the 30-10-3 or “trigger” test previously used), contractors can expect many more requests for additional compensation data during desk audits than in recent years. Contractors should analyze their compensation data using the new threshold test, and if a significant number of job titles are flagged, you should consider conducting an in depth pay equity analysis, including regression analysis and/or cohort analysis.

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