December 06, 2019
The Office of Federal Contract Compliance Programs (OFCCP) announced that it will not request, accept, or use EEO-1 Component 2 compensation data that employers submitted this year for the agency's federal contracting audits.
In the announcement, OFCCP stated “it does not expect to find significant utility in the [Component 2 pay] data given limited resources and its aggregated nature, but it will continue to receive EEO-1 Component 1 [employment] data.”
OFCCP noted it has already identified "the data necessary to accomplish its mission."
“Although the data could potentially inform OFCCP’s scheduling process for compliance evaluations, it is too broad to provide much utility to OFCCP,” the agency further stated. "[It] is not collected at a level of detail that would enable OFCCP to make comparisons among similarly situated employees as required by the Title VII standards.”
Takeaway: OFCCP will still collect detailed compensation data as part of any federal contractor audit it conducts. Further, while EEOC announced in September that it would not seek approval to collect pay data next year, it announced in the recent fall regulatory agenda that it is considering a new rulemaking “that may include a new reporting requirement by which employers would submit pay data or related information as reasonable, necessary, or appropriate for the enforcement” of Title VII and the Equal Pay Act.