1. Issues for Federal Contractors 2017
Jennifer Trulock
Baker Botts L.L.P.
Dallas, Texas

2. Agenda
Personnel
Key Regulations
Focus on Equal Pay
Audits

3. Thomas Dowd, Acting Director
Joined OFCCP in DPO
Functional Affirmative Action Program Unit
Field Liaison Operations & Technical Assistance
Appeals Quality Assurance
Enforcement and Appeals
Promoted upon Pat Shiu's departure on 11/6/2016

4. Pay Transparency Rule Effective January 11, 2016
Applies to contracts of $10,000+
Employees not required to keep "compensation" confidential
What is compensation?
Few exceptions
Employers must inform employees of the right to share
Action step: Review confidentiality policies

5. Sex Discrimination Guidelines
Effective August 15, 2016
Prohibits discrimination based on sex
Hostile work environment
Pregnancy, childbirth, related conditions
Sex stereotypes, gender identity, transgender status
Best practices provided

6. EEO-1 Pay Data Due March 31, 2018 Data Purpose
W-2 Earnings for December 31, 2017
Hours worked data reported
By EEO-1 job category, across 12 pay bands
Purpose
Early assessment of charges of discrimination
Aggregate data to publish reports
Enhance training programs

8. EEO-1 Pay Data Watch list Victoria Lipnic, EEOC Acting Chair
Voted against EEO-1 pay data report
One of Business Roundtable's "Top Regulations of Concern"

9. Paid Sick Leave 4 major categories of contracts:
Procurement contracts covered by the Davis- Bacon Act (DBA)
Service contracts covered by the McNamara- O’Hara Service Contract Act (SCA)
Concessions contracts
Contracts in connection with federal property/ lands and related to offering services for federal employees or the general public

10. Paid Sick Leave Requirements Use for
1 hour for every 30 hours worked, limited to 56 hours per year
Carry over of unused hours permitted
No payout upon termination
Use for
Any illness, injury, or medical condition
Obtaining diagnosis, care, or preventative care
Services related to domestic violence, sexual assault, stalking

11. Fair Pay and Safe Workplaces E.O.
"Blacklisting" rules
Requires contractors to disclose labor law violations going back 3 years
Enjoined since October 2016
Both House and Senate passed resolutions to stop the regulation
Makes the injunction permanent
As of March 6, 2017, waiting for the president's signature

12. OFCCP Focus - Equal Pay Sex Discrimination Final Rule
Prohibits wage discrimination based on sex
Includes fringe benefits
Equal access to jobs and development opportunities

13. OFCCP Focus - Equal Pay Recent audits and cases back up this focus
Google refused to give employee-specific data
Starting salary, position, job code, job family, job level and any changes in 2014 & 2015
OFCCP filed suit to obtain this information

14. OFCCP Focus - Equal Pay Oracle - pay discrimination
Paid white males more than female, African- American, Asian employees
IT, product development, and support roles
Oracle refused to provide information

15. OFCCP Focus - Equal Pay Analogic - pay discrimination
Massachusetts technology manufacturer
Pay discrimination against female assembly workers

16. OFCCP Focus - Equal Pay JP Morgan Chase - pay discrimination
Paid white males more than females in professional positions
Application Developer Lead, Project Manager and Technology Director positions

17. OFCCP Focus - Equal Pay LexisNexis - settlement of $1.2 million
Paid women in Operational Leadership jobs less than men
Back pay, revise policies, annual compensation analysis

18. OFCCP Focus - Equal Pay Ameriprise Financial - $128k settlement
Back pay to 20 black employees
Unlicensed service professional positions processed account service requests

19. OFCCP Focus - Equal Pay Genlyte Thomas - $275k settlement
Paid women workers in various manager and sales positions less than men
Back pay, evaluate starting salaries, revise policies, training, better guidelines for starting salaries

20. Audit Data February 17, 2017 - CSALs mailed
Provide one month notice of audit
Encourage contractors to use OFCCP compliance assistance offerings
Encourage self–audit efforts - saves OFCCP time/resources
Help contractors budget time required for evaluation

21. OFCCP Enforcement Procedures
"Compliance assistance"
Conduct compliance evaluations and complaint investigations
Obtain Conciliation Agreements
Monitor using compliance reports
Facilitate agreements between contractors and job training programs
Recommend enforcement actions to the Solicitor of Labor
Ultimate sanction is debarment

22. Recent OFCCP Statistics - Complaints
FY 2016
FY 2015
FY 2014
FY 2013
FY 2012
Investigated
147
114
148
232
176
Monetary Relief
$203,933
$516,797
$226,598
$457,851
$171,426
Complainants with Monetary Relief 11 15 12 27 7
Monetary Relief Per Complainant
$18,539
$34,453
$18,883
$16,957
$24,489

23. Recent OFCCP Statistics - Audits
FY 2016
FY 2015
FY 2014
FY 2013
FY 2012
Scheduled
1,048
2,036
3,014
4,429
3,184
Completed
1,522
2,345
3,471
3,696
3,496
Completion Type 
Conciliation Agreement or Consent Decree
273
342
395
894
1045
17.9%
14.6%
11.4%
24.2%
29.9%
EO Violation
258
297
343
698
788
17.0%
12.7%
9.9%
18.9%
22.5%
Section 503 Violation 99
173
245
614
710
6.5%
7.4%
7.1%
16.6%
20.3%
Section 4212 Violation
140
236
280
704
813
9.2%
10.1%
8.1%
19.0%
23.3%
Discrimination Violation 38 32 41 59 94
2.5%
1.4%
1.2%
1.6%
2.7%

24. Thank You! Issues for Federal Contractors 2017
Jennifer Trulock
Baker Botts L.L.P.
Dallas, Texas