The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) is looking at developing a data tool to collect information on wages, salaries and other benefits that are paid to both federal contractors and subcontractors.

It is hoped that the tool will allow for data that could help prevent discrimination (such as disparities that female and minority workers encounter) to be gathered and analyzed. The Department of Labor recently published a notice in the Federal Register to allow the public to provide feedback to the idea.

The OFCCP is responsible for enforcing the Executive Order that prohibits companies that do business with the federal government to discriminate in employment practices (including pay) on the basis of sex, race, color, national origin or religion. In the fall of 2010, the agency announced plans to create this data tool. The tool would help companies when it comes to assessing their own pay practices. It would also give the OFCCP a heads up in the event a company’s practices should be reviewed.

It’s been almost 50 years since the Equal Pay Act became law. Federal officials say though the wage gap has narrowed, there is still a lot of work to be done when it comes to pay discrimination issues.

According to the Department of Labor’s Bureau of Labor Statistics, in 2010, women were paid an average of 77 cents for every dollar that is paid to men. Research also shows that race- and ethnicity-based pay gaps put workers of color (including men) at a disadvantage. The OFCCP hopes this data tool will help eliminate pay-based discrimination.

The notice in the Federal Register includes 15 questions for public response. It includes questions on the types of data that should be requested, how the data should be collected, the depth of information that should be attained, how the information should be used, which contractors should be required to provide compensation data and any reasons the data collecting tool could create any burdens for small businesses.

The proposal will be open to public response for 60 days—with the deadline being set for October 11. Visit http://www.regulations.gov to read the proposal or submit comments. 

Modern Business Associates is an HR company that focuses on payroll and HR outsourcing.  We routinely work with clients on compensation issues. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.