US Department of Labor to identify barriers to equal pay

“The Office of Federal Contract Compliance Programs’ directive on pay equity audits is an important measure that will help employers address and prevent pay inequality.”

WASHINGTON, D.C (WWAY) – As the nation observes Equal Pay Day, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs issued a new directive to promote greater attention to the effective use of pay equity audits to identify barriers to equal pay in wage-setting and employment practices.

“The Office of Federal Contract Compliance Programs’ directive on pay equity audits is an important measure that will help employers address and prevent pay inequality,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang.

OFCCP’s director also makes clear that if the agency identifies concerns during an evaluation, it may request the pay equity audit to verify the contractor’s compliance with its job to conduct a yearly in-depth analysis of its pay practices.

Almost 60 years after the passage of the Equal Pay Act of 1963, the Civil Rights Act of 1964 and Executive Order 11246 in 1965, significant gender pay gaps persist. Women who work full-time, year-round in the U.S. typically are paid only 83 cents for every dollar paid to men. The wage gap is even more pronounced for women of color.

As the nation makes critical infrastructure investments, federal contractors have an important role to play in taking proactive action to develop fair pay practices and conduct an annual pay equity audit to identify and correct inequities.

OFCCP is working with the community to tackle longstanding pay inequality through unbiased pay setting practices, greater analysis of wage systems, and transparency in pay equity audits.

The directive aligns with the Executive Order on Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency signed today by President Biden.

The Executive Order directs the Federal Acquisition Regulatory Council, in consultation with the Department of Labor, to consider proposing rules limiting or prohibiting federal contractors from seeking and considering information about job applicants’ and employees’ existing or past compensation when making employment decisions.