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Regulatory Developments

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SHRM has filed comments with the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) on an advanced notice of proposed rulemaking. The agency proposes to create a new compensation data collection tool for federal contractors for the purpose of identifying potential compensation discrimination.

In its rulemaking notice, the OFCCP claimed that a new tool is needed to “generate insight into potential problems of compensation discrimination at the establishment level that warrant further review…as well as to identify and analyze industry trends.”  

In their October 11 joint filing, SHRM and the College and University Professional Association for HR (CUPA-HR) questioned the need for this new tool, pointing out that the agency already engages in a robust collection of data from the federal contractor workforce. They encouraged the agency to reconsider, in light of President Obama’s recent directive that there should be “no more regulation than the health, safety and security of the American people require.”

To minimize the burden on contractors, the filing urged the OFCCP to coordinate with other enforcement agencies, such as the Equal Employment Opportunity Commission, which is also seeking to collect compensation data.

SHRM and CUPA-HR said the type of generic data the agency described in its notice will not assist it in eradicating compensation discrimination. They stressed that any measure taken by the agency must protect a federal contractor’s highly sensitive and proprietary information from inappropriate or inadvertent disclosure.

The full SHRM/CUPA-HR comments can be read HERE.

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