Despite resistance from the employer community, EEO-1 'Component 2' compensation reporting requirements will most likely be upheld by federal courts. As employers scramble to assemble their reports, many are also concerned with the potential risk exposure these reports may introduce. First and foremost, how will the OFCCP and EEOC use this information in their pay equity investigations? Strategically, the OFCCP has large...

On the face of it, missing data seems more of a mundane nuisance than a problem. This is particularly the case with applicants' voluntary self-reporting of race and gender data. Based on our experience, however, missing data is one of the most overlooked threats to AAP compliance. Unfortunately, most contractors do not realize this until they are deep in the middle of an OFCCP audit. The goal of this article is to help...

The economy is going strong and the unemployment rate is at an all-time low. The last thing on anyone's mind is workforce downsizing or Reduction in Force (RIF). However, for the experienced Human Resources (HR) practitioner, s/he understands that RIFs do not occur solely during economic downturns. RIFs are a normal and (arguably) healthy part of maintaining a high performing workforce that supports organizational str...

Adverse Impact (AI) analysis between two groups is simple and straightforward. Historically, Whites were considered the majority compared to all other groups, but today best practices dictate a closer look at all race groups. AI investigations become significantly more complex when there are two or more groups to analyze, such as the case with individual race (e.g., Asian, African-American, Hispanic, White). Specifically,...

In August 2013, Adverse Impact (AI) analysis received one of the most important judicial clarifications rendered since its formal Supreme Court codification in 1971. Administrative Law Judge Kenneth A. Krantz ruled in favor of VF Jeanswear (VF) and denied OFCCP’s request for summary judgment against VF. In his decision, Judge Krantz formally clarified and articulated a judicial position on methods of grouping races for...

In support of President Obama's continued effort to combat pay discrimination, the OFCCP announced on August 6, 2014 a Notice of Proposed Rulemaking (NPRM) that will amend the regulations to require federal contractors and subcontractors to submit an annual Equal Pay Report (EPR) on employee compensation. Although the details of the EPR are not yet finalized, the NPRM provides a generous preview of what lays ahead fo...