The “OFCCP Week in Review” is a simple, fast and direct summary of relevant happenings in the OFCCP regulatory environment published every Monday. Here are this week’s developments:
January 4, 2016: REMINDER: A Week From Today, January 11, 2016, Is The Date OFCCP’s Pay Transparency Rule First Becomes POTENTIALLY Applicable To Covered Federal Contractors and Subcontractors.
Coverage: NOTE: OFCCP’s so-called “Pay Transparency” Rule is NOT immediately legally binding on January 11, 2016. Federal contractors/subcontractors which:
-sign a covered federal contract(s)/subcontract(s) or, if your company is a construction company, sign a contract for Federal Financial Assistance, or
-modify or extend an existing covered federal contract(s)/subcontract(s) or, if your company is a construction company, sign or modify or extend a contract for Federal Financial Assistance;
valued in excess of $10,000 (aggregated or in a single covered contract/subcontract) on or after January 11, 2016 are obligated to comply with OFCCP’s so-called “Pay Transparency.” So, you have to comply only AFTER you sign a new covered contract(s)/subcontract(s) or modify or extend an existing contract(s)/subcontract (s) on or after January 11, 2016.
Once covered, there are 4 things covered federal contractors/subcontractors must do:
- Modify your Executive Order 11246 EEO Clauses (which you install in the contracts of your covered federal subcontractors). NOTE: the revised clause includes a provision prohibiting contractors from discharging, or in any manner discriminating against, any employee or applicant for employment because the employee or applicant inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant;
- Notify your employees of OFCCP’s Pay Transparency Rule using a prescribed statement OFCCP variously describes as either a “Nondiscrimination Provision” or a “Pay Transparency Policy Statement;”
- Publish OFCCP’s prescribed Pay Transparency “Nondiscrimination Provision” in your company’s existing Employee Manual or Handbook (if you have an Employee Manual or Handbook: you have no obligation to create a Manual or Handbook if you do not have one); and
- Post notices to your employees using OFCCP’s new “Supplement” to the federal “EEO is the Law” poster which contains new language pursuant to the Pay Transparency Rule.
THIS COLUMN IS MEANT TO ASSIST IN A GENERAL UNDERSTANDING OF THE CURRENT LAW AND PRACTICE RELATING TO OFCCP. IT IS NOT TO BE REGARDED AS LEGAL ADVICE. COMPANIES OR INDIVIDUALS WITH PARTICULAR QUESTIONS SHOULD SEEK ADVICE OF COUNSEL.
Reminder: If you have specific OFCCP compliance questions and/or concerns or wish to offer suggestions about future topics for the OFCCP Week In Review, please contact your membership representative at 866-268-6206 (for DirectEmployers Association Members), or email Candee Chambers at email@example.com with your ideas.