The OFCCP Plays Hardball With Pay Disparity: Get Your Wallets Out, Federal Contractors!

Federal Contractor Omnicare Agrees to Pay $300,000 in Back Wages To Settle Alleged Discrimination
Federal Contractor Coastal International Security Agrees to Pay $409,947 in Back Wages To Settle Hiring Discrimination Allegations
Federal Contractor Humana Pays $2.5 Million in OFCCP Case
Dell Pays More Than $2.9 Million in Back Wages to Settle OFCCP Allegations
State Street Corp. To Pay $5 Million To Settle Unequal Pay Allegations
Labor Dept. Alleges Oracle Could Owe $400 Million in Unequal Pay Case


The headlines just Do. Not. Stop. The OFCCP (Office of Federal Contract Compliance Programs) is taking pay disparity seriously, and they’re playing hardball. The numbers involved keep getting higher and higher.

And far from this slowing down or stopping under the Trump administration, the OFCCP has made record recoveries in the first year of the new administration, collecting more than $39 million from January 2017 through September 2018.

The topic of pay disparity is hot. You’ve got Hollywood superstars like Jennifer Lawrence asking why they’re making so much less than the men in the movie with them, the #MeToo movement isn’t going anywhere, and the pay gap is stuck at 80 cents for women’s pay to every man’s dollar. Network is on Broadway, and face it, women are saying, “We’re mad as hell and we’re not going to take it anymore!”

Even if you mean well as an employer, there’s a damn good chance you have pay disparity lurking in your workforce. Why?

Well, did you base your offers on past salary?

Think about it. If women and minorities are paid less than white men, then that lower salary carries forward to the next position if you’re using past salary in your calculations.

And if you’re a federal contractor? Get your boots on and get to work – you have 12 new OFCCP directives to comply with from 2018. And 2019 promises to be just as busy, with more directives to come.

Additionally, in 2019 the OFCCP plans more audits, although probably not up to the projected 3,500. There will be an increased focus on the disabled and section 503 requirements.

And compensation? Well, that continues to stay in the spotlight. Front and center. Like JLaw in a starring role.

So make sure you’re ready. Get guidance and strategies from experts in the field. C4CM brings you Littler Mendelson’s co-chair of the firm’s OFCCP Practice Group and Government Contractors Industry Group, David J. Goldstein, and his colleague, Meredith Shoop, to discuss in detail the steps federal contractors need to have in place to comply with the new OFCCP directives.

Find out how to keep your organization safe with C4CM’s OFCCP Pay Directives: How to Ensure Federal Contractor Compliance. Not sure you need it? Go back up to the top and look at those settlement figures again. Think again!

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