OFCCP Provides Compensation Practices Directive

 

August 25, 2018 - The OFCCP issued on Friday August 24 Directive 2018-05 “Analysis of Contractor Compensation Practices During a Compliance Evaluation” in order to clarify compensation standards and provide transparency to contractors about the agency's approach when conducting compensation evaluations.

This directive provides clarification and transparency to what the OFCCP has been doing during compensation evaluations during AAP audits since the implementation of Directive 307. The OFCCP found that Directive 307 was effective in finding pay discrepancies and will continue to use the same methodologies as they have been using.  Directive 2018-05 provides guidelines for the OFCCP review personnel to maintain consistency while providing transparency of the review process to the contractor. Contractors should review their compensation using the same process as the OFCCP when reviewing their compensation on a yearly basis and before an OFCCP audit.

Speediware released their Compensation Analysis system in SpeedEEO in conjunction with Directive 307 in order to provide contractors with a full analysis package to review their compensation as part of their yearly AAP process. Speediware also encourages contractors to review their compensation using a regression model and pay analysis groups before any OFCCP audit to identify and correct any issues in advance of the audit data submission.

Contact Speediware for more information on how to get started with the Compensation Analysis System today.