Organizations performing business with the federal government often face more administration orders from the US Department of Labor’s contractors. Under the proposed rule, it eases the limits on an agency’s ability to get pay discrimination claims. As a result, Federal Contractors invigorating for Government pay influence study.
Under the proposal to diminish a Trump-era rule, the OFCCP (Office of Federal Contract Compliance Programs) has the authority to include violations in the investigation stage. Moreover, contractors will have less time to react to allegations. Also, if the contractor does not provide the requested information to OCCP, it gives the office the power to issue a show-cause notice. It can issue this notice before a presumption notice or violation notice.
Alissa Horvitz is an attorney at Roffman Horvitz PLC. It has expertise in federal contractor compliance. She states that contractors should prepare long information requests without OFCCP’s explanation. Also, they set up a battle involved in pay analysis to display show-cause threats more often to get contractors to comply with data requests.
Patricia Shiu is a labor and employment consultant at OFCCP. She states that the earlier rule provided a valuable chance to resolve cases and serve the OFCCP’s interests and federal contractors.
Boosting Enforcement
Companies should prepare themselves for the OCCP audit. They need to provide data troves, particularly related to pay equity. The proposed rule accompanied an agency directive that stated that it would closely inspect pay equity audits on contractors. It also rolled out an online portal for contractors’ certification of affirmative action plans. these are all the actions for Federal Contractors invigorating for Government pay influence study.
Jenny Yang is the Director at OFCCP. She said in a blog that the 2020 “imposed inflexible evidentiary requirements early in the compliance evaluation process” constrained the OCCP. As a result, OCCP can not practice full enforcement authority. In addition, as per Yang, the current rules misuse agency resources due to “time-consuming disputes” about whether the OCCP met the evidentiary standards.
But, as for attorneys representing contractors, the rule led to an efficient exchange between contractors and the OFCCP. Again, it is because they know the specific claims they face. As per general rule, if employers know the terms of potential enforcement actions led by the OFCCP, they can make better decisions that lead to efficiency.
As per the pay equity directive issued last week, contractors should prepare for an audit with comprehensive information about internal pay analyses. The OFCCP gives a Corporate Scheduling Announcement Letters list every fiscal year. It contains the names of the companies lined up for audit.
Fishing Expedition
Craig Leen led the office during the Donald Trump administration. He said that the 2020 rule intended to permit the agency to attain quick resolutions related to workers facing discrimination. Here the target is not to perform a fishing expedition. Instead, it is to audit contractors regularly and when there is any disparity, correct them immediately.
If OFCCP finds any discriminatory practices evidence and wants additional information, it gives a predetermination notice and requests more data. Under the latest rule, the agency shows potential noncompliance. If contractors disapprove of providing the data, the agency can file a violation notice. If a resolution does not meet, the agency can follow with a show-cause statement. It will ask contractors to prove why OFCCP shouldn’t move forward with enforcement proceedings.
