In their fiscal year 2018 reports, the EEOC and OFCCP report combined monetary settlements of $521 million to victims of workplace discrimination. It was reported that $505 million in funds were paid to settle EEOC complaints, benefiting almost 68,000 people. An additional $16.4 million was paid to 12,000 workers based on findings by the OFCCP, primarily in the area of compensation violations.
Just in time for Halloween, OFCCP has been busy with what some may think are scary activities. Contractors with locations on the latest CSAL list are beginning to receive the initial phone calls to schedule their compliance reviews. The scheduling letters were said to start being mailed out on October 22, 2018.
A final rule implementing Executive Order (EO) 13838 was issued this week by the Wage and Hour Division of the Department of Labor. EO 13838 provides exemptions for some federal contracts that were established under EO 13658 “Establishing a Minimum Wage for Contractors.”
Hope Solo, a former goalkeeper for the U.S. women’s national soccer team, has filed a lawsuit in California Federal Court against the U.S. Soccer Federation for violating the Equal Pay Act.
Today, OFCCP announced three different directives geared towards maximizing the success of compliance assistance outreach for federal contractors. The directives include new procedures for reviewing compensation practices, a program to verify that contractors are in full compliance with federal AAP requirements, as well as an initiative that will establish a program that recognizes contractors with high-quality and high-performing compliance initiatives.
At the end of April, we reported that U.S. District Judge Mitchell Goldberg issued a preliminary injunction regarding a City of Philadelphia ordinance, which prevents employers from asking about a job applicant’s salary history and using those salary histories to set wages. Judge Goldberg struck down the provision that employers are not able to ask about a job applicant’s prior salary. He indicated there is insufficient evidence that a worker disclosing a salary that may be the result of past discrimination would mean the prospective employer would offer a lower wage. The City did not sufficiently address if lower wages could be the result of non-discriminatory factors such as qualifications or experience, and thus, he ruled it is acceptable for employers to request salary history.
Join us as Berkshire’s President, Beth Ronnenburg collaborates with Tim Orellano, President of the Human Resources Team, for a lively session on compensation interviews and their increase in popularity during OFCCP compliance reviews during the April 25 session at DirectEmployers 2018 Annual Meeting & Conference.
Hurry and reserve your seat at SHRM Jacksonville Conference. Berkshire expert, Charu Avasthy, will dive deep into pay equity during this insightful presentation “Is There Hidden Liability Lurking in Your Compensation System? Identifying and Eliminating Pay Inequity,” on April 12, 2018, at the University of North Florida. Register today!
The Federal Office of Management and Budget (OMB) says the final decision on whether pay data is to be collected in EEO-1 reports has not been made. This information came in as a request filed by OMB to dismiss a lawsuit filed by the National Women’s Law Center (NWLC) and the Labor Council for Latin American Advancement (LCLAA).
In September 2016, OMB approved a revision to the EEO-1 report that would require employers to report pay data—in the form of W-2 wages—in addition to the race, ethnicity, and gender information already collected on the EEO-1 form. This new pay data is referred to as Component 2 and the existing race, ethnicity, and gender data is referred to as Component 1. In August 2017, OMB announced its decision to review and stay with the EEOC’s new collection of Component 2 pay data, noting concerns of the practical utility of the data, unnecessary burden on employers, and confidentiality concerns. EEOC also announced the Component 1 requirements for 2017 would be due by March 31, 2018.
Compensation has been a hot-button issue for businesses during 2017. There were many pay discrimination and pay equity cases in 2017 with large companies, including Uber, LabCorp, Google, and LexisNexis as the Department of Labor continues their focus on compensation. Terms like ‘equal pay.’ ‘pay transparency,’ and ‘pay equity’ were frequently used in the news as advocacy groups focused on these topics to ensure their voices are heard. Though the terms may seem the same, they have different meanings.