Review Period on Compensation Audits Ripe for Contractor to Reassess Practices

The February 13 issue of the Daily Labor Report reported on a webinar that Celia Joseph presented for an affirmative action consulting firm about efforts by the Office of Federal Contract Compliance Programs (OFCCP) to crack down on pay discrimination in the federal contracting community by taking a closer look at compensation data. Cheryl said that some federal contractors worry that a self-audit on pay practices will uncover salary discrepancies, resulting in an increase to the payroll budget at a time when the organization cannot afford to bump people up on the pay scale. She emphasized how important it is for an employer's human resources team to work closely with the department or unit responsible for handling the company's federal contracts. "Oftentimes, there is a disconnect between the two groups, especially if the company is not sure whether it's a federal contractor. It's important that the HR team has some engagement with the folks who are handling the company's services contracts."