Tuesday, January 24, 2012

OFCCP Compliance Review - Compensation

If your company is going through an OFCCP compliance review expect a rough road.  If you haven’t already experienced this you’ll be in for a surprise when the OFCCP asks for more compensation data including bonuses, compensation, part time hours worked and overtime. These will be just some of the data you’ll be asked to deliver. If this makes you uncomfortable get ready for a rough ride. 

It’s likely the initial review of your compensation data (Paragraph 11) by the OFCCP is going to fail…giving them the green light to ask for all of your data.  It’s believed the OFCCP is using a 2or2 test (2% or $2K difference in pay) they’ve devised that generally fails most companies. We’ve noticed the letter they send requesting the additional data is a canned letter asking for this data on all your positions. It really would be a lot easier if they were to just come out and ask you to explain the findings that alerted them. Never less they will likely come back to you and ask for at least 16 points of compensation related data. Drive carefully, there’s a rough road ahead.