OFCCP Submits ANPRM on New Compensation Data Collection Tool

The Office of Federal Contract Compliance Programs (OFCCP) has submitted an Advanced Notice of Proposed Rulemaking (ANPRM) on the development of a new compensation data collection tool for approval to the Office of Management and Budget (OMB). This ANPRM was submitted on February 18, 2011 to the OMB. The proposed tool is designed to identify contractors that are likely to violate Executive Order 11246, and may be used to conduct establishment, contractor, and industry specific analyses. This ANPRM indicates the OFCCP is moving ahead with plans to implement a compulsory yearly survey of the contractor community.

The OFCCP Director, Patricia Shiu, had clarified in a January web chat that the OFCCP will not be reissuing the previous Equal Opportunity Survey. Once published, this ANPRM will seek comments on issues relating to the scope, content, and format of the tool to ensure it is an effective and efficient data collection instrument. Director Shiu also indicated the OFCCP will conduct town hall meetings to gather public input once details are released to the contractor community. Noncompliance

As described in the OFCCP’s Congressional budget justification posted online, this tool will likely collect compensation data from 70,000 to 110,000 contractors each year. The scope of the data is unclear at the moment, but based on agency activity, the tool will likely collect compensation information by job group and include salary, gender, race and ethnicity data for each employee. Another option is an average compensation requirement with variances for each group by gender, race, and ethnic category. Also uncertain is whether personnel activity data will be required, and if so, what type will be collected, or if data on Veteran status and disability will be incorporated. In keeping with the recent focus on “uncovering” information, the OFCCP has proposed a searchable web-base system comprised of aggregated data from the compensation data collection tool, which would be available to the public.

Berkshire’s experts will continue to monitor this rule, and will provide updates as needed. In the meantime, if you have any questions, please contact your Berkshire representative at 800.882.8904.