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New guidance (somewhat) relaxes federal contractors’ compensation audits

Jaclyn Jaeger | September 7, 2018

Compliance officers at federal contractors will be pleased to hear about a new directive that relaxes the standards by which contractors’ compensation practices will be evaluated during compliance audits, along with promising more transparency and consistency.

The Office of Federal Contract Compliance Programs—the Department of Labor division responsible for ensuring federal contractors’ compliance with Equal Employment Opportunity laws—has released its long-awaited Directive 2018-05, outlining the OFCCP’s standard procedures for reviewing contractor compensation practices during a compliance evaluation. The procedures established in this directive apply to all OFCCP reviews that were scheduled on or after Aug. 24.

“Pay discrimination by federal contractors is unlawful, and its elimination is a key enforcement priority for the agency,” the OFCCP stated. “OFCCP, however, can only...

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