Understanding and Responding to OFCCP's Final Standards on Systemic Compensation Discrimination and

William Frend De Morgan

Description

Understanding and Responding to OFCCP’sFinal Standards on Systemic Compensation Discrimination and Voluntary Compensation Self-Audit GuidelinesPresentersMark S. DichterPhiladelphia, PAPhone: 215.963.5291Email: [e-mail] E. Doyle, Jr.Washington, DCPhone: 202.739.5208Email: [e-mail] Overview• Summary of new Compensation Standards and Voluntary Self-Audit Guidelines• Practical impact on employers• Recommendations New Compensation Standards • Govern OFCCP Compensation Audits• “Definitive Interpretation” of Executive Order 11246– Cannot be modified without notice and comment– Subject to judicial review under APAVoluntary Self-Audit Guidelines• Incentive for contractors to conduct self-audits using methods recommended by OFCCP• Can be changed without notice and comment proceduresSummary of Compensation Standards• Similarly Situated Employee Groupings (“SSEGs”)• Multiple Regression Analysis (“MRA”)• Legitimate factors included in the MRA• Anecdotal evidence• OFCCP’s investigation processesSimilarly Situated Employee Groupings (“SSEGs”)• Similar work• Positions involving similar skills, qualifications and responsibility levels– Skills and qualifications involved in position, not particular to incumbent employees• Additional factors:– Department or other business unit• Budget constraints– Employment status (e.g., part-time vs. full-time)– Compensation status (e.g., salaried, hourly, ...

Informations

• Publié par: Suwyig
• Nombre de lectures: 24
• Langue: English

Extrait

Understanding
and
Responding
to
OFCCP’s Final
Standards
on
Systemic
Compensation
Discrimination
and
Voluntary Compensation
Self-Audit
Guidelines

Presenters

ar
S.
Dichter Philadelphia,
PA Phone:
.. Email:
mdichtermorganleis.com

William
E.
Doyle,
Jr. Washington,
DC Phone:
.. Email:
doy lemorganleis.com

Wecast

•

•

•

Oerie

Summary
of
new
Compensation
Standards
and
Voluntary
Self-Audit
Guidelines

Practical
impact
on
employers

Recommendations

e

•

•

Compensation
Standards

Govern
OFCCP Compensation
Audits

“Definitive
Interpretation” of
Executive
Order
11246

– Cannot
be
modified
without
notice
and
comment

– Subject
to
judicial
review
under
APA

Voluntary
Self-Audit
Guidelines

•

•

Incentive
for
contractors
to
conduct
self-audits
usin
methods
recommended
by
OFCCP

Can
be
chaned
without
notice
and
comment
procedures

Summary of
Compensation
Standards

•

•

•

•

•

Similarly
Situated
Employee
Groupins

ultiple
Reression
Analysis
“RA”

eitimate
factors
included
in
the
RA

Anecdotal
evidence

OFCCP s investiation
processes

 

“SSEGs”

Similarly Situated
Employee
Groupings
  SSEGs 

• •

•

•

 

ility

o

Similar
wor Positions
involvin
similar
sills
ualifications
and
responsib levels – Sills
and
ualifications
involved
in
position
not
particular
t incumbent
employees Additional
factors – Department
or
other
business
unit • udet
constraints –Employment
status
e
part-time
vs
full-time – Compensation
status
e
salaried
hourly
commissioned Preference
for
SSEGs of

employees
and

of
each
comparator
roup –ever
roup
dissimilar
employees
to
reach

preference

 



u

•

•

•

ltiple
Regression
Analysis
  R A



OFCCP preference
for
RA by
SSEG – i ll
use
a
“pooled” reression
to
meet
objective
of
coverin

of
employees
under
review •Pooled
reression
not
preferred
or
intended
for
widespread
use – OFCCP will
test
if
interaction
terms
are
reuired
 “Chow
est ” – i ll
only
include
statistically
sinificant
interaction
terms
• Several
interactions
may
only
be
statistically
sinificant
in
combination

wo
standard
deviation
threshold
for
statistical
sinificance

Include
leitimate
factors
which
influence
compensation

•

•

•

egitimate
Factors
nfluencing
Compensation

OFCCP will
investiate
to
determine
factors
on
case -by-case
basis

Factors
need
not
be
overtly
considered
in
a
compensation
decision – udet
constraints – Employer s
compensation
policies – OFCCP will
test
for
a
statistically-sinificant
correlation
between
compensation
and
the
factor

o
presumption
that
a
factor
within
the
employer  s
control
is
“tainted” by
discrimination – Correlation
between
factor
and
protected
classification
is
not
enouh
to
establish
must
be
independent
proof

egitimate
Factors
nfluencing
Compensation
--Eamples

• • • • • • •

Education – Relevance
of
deree
to
current
position Experience ocation Performance Productivity Sinificant
leaves
of
absence Employment
with
predecessor
company

Anecdotal
Eidence

•

•

•

OFCCP will
investiate
to
find
examples
of
compensation
discrimination
aainst
particular
individuals

ot
“smoin
un ” direct
evidence
of
discrimination

OFCCP Expresses
a
“Stron
Preference ” for
Anecdotal
Evidence
to
Support
Statistical
Evidence – Expectation
that
OFCCP will
find
anecdotal
evidence