Federal contractors: Heed the government’s new test for pay discrimination — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Federal contractors: Heed the government’s new test for pay discrimination

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If your organization benefits from federal contractors, familiarize yourself with the new “tipping point test” of the Office of Federal Contract Compliance Programs (OFCCP). The agency quietly began using the test to determine whether federal contractors with affirmative-action plans might have discriminatory pay practices.

The OFCCP reviews employers’ compensation data on audit letters to decide which companies will undergo on-site audits. It will flag various criteria, such as whether there are pay differences of at least 5% between gender or race groups within the same pay division and whether these differences harm at least 30% of females or minorities.

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