May 08, 2023
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Category: Compensation

EEOC Asks OMB to Approve Three-Year Extension of EEO-1 Component 1 Data Reporting

The Equal Employment Opportunity Commission (EEOC) is seeking approval from the White House Office of Management and Budget (OMB) to continue using a slightly modified version of the Component 1 EEO-1 Report for another three years. If approved by OMB as expected, the slightly revised EEO-1 will go into effect for reports filed through 2025. The Center for Workplace Compliance...
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April 24, 2023
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Category: Compensation

Third Circuit Rules Paid Time Off Is Not Salary for FLSA Purposes

Paid time off (PTO) is not part of an employee’s salary, and therefore an employer did not violate the Fair Labor Standards Act (FLSA) by making deductions from FLSA-exempt employees’ paid time off if they failed to meet productivity goals, the U.S. Court of Appeals for the Third Circuit ruled recently in a case of first impression. The workers in Higgins...
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April 20, 2023
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Category: Agency Enforcement

OFCCP Submits Proposed Burdensome New Scheduling Letter to OMB for Approval

The Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) is asking the White House Office of Management and Budget (OMB) to approve a revised Scheduling Letter and Itemized Listing that would substantially increase the administrative burden on a federal contractor scheduled for a compliance audit. If OMB approves it, the revised scheduling letter would require covered contractors to submit...
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April 13, 2023
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Category: Affirmative Action and Diversity

OFCCP Issues New “Pay Equity” Resource

The Labor Department’s Office of Federal Contract Compliance Programs (OFCCP), in conjunction with the agency’s recent Equal Pay Day observation, issued a resource reminding federal contractors to discontinue discriminatory pay policies and practices. The new resource, “Taking a Proactive Approach to Achieving Pay Equity,” is available online here. Members of the Center for Workplace Compliance (CWC) can read more here.
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April 11, 2023
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Category: Compensation

$8 Million FLSA Settlement Shows Potential Risk of Not Accounting for Restricted Stock Value

An $8 million settlement was recently reached in a Fair Labor Standards Act (FLSA) class action that raised the complex issue of whether or how an employer should include equity compensation when calculating an employee’s regular rate for purposes of overtime pay. The preliminary settlement in Bowlay-Williams v. Google, LLC, No. 21-09942 (N.D. Cal.), resolved claims that an employer violated...
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September 23, 2022
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Category: Compensation

California on Verge of Expanding Pay Transparency and Wage Reporting Requirements

The state of California, one of two states (Illinois being the other) with pay reporting requirements in effect, is about to expand those requirements as well as add California to the growing list of state and local jurisdictions that require employers to include salary information in job postings. The new requirements are contained in a bill (S.B. 1162) recently approved...
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August 26, 2022
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Category: Agency Enforcement

Contractors Have Until September 19 To Object to OFCCP Disclosure of Type 2 EEO-1 Data

In response to a Freedom of Information Act (FOIA) request received by the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) that seeks the release of thousands of federal contractors’ and subcontractors’ consolidated EEO-1 Reports filed during calendar years 2016 – 2020, the agency has announced that it will release the requested information unless a contractor files a written...
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August 26, 2022
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Category: Agency Enforcement

OFCCP Revises Controversial “Pay Equity Audits” Directive

The Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has revised the controversial Pay Equity Audits directive issued earlier this year to clarify that the agency “will not require the production of privileged attorney-client communications or attorney work product.” As we reported back in March when it was issued, the original directive instructed OFCCP compliance officers (COs) to...
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August 12, 2022
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Category: Compensation

NAS Panel Concludes EEO-1 “Component 2” Flawed, Recommends Improvements

An outside organization commissioned by the Equal Employment Opportunity Commission (EEOC) to evaluate the agency’s 2017-2018 collection of pay and hours-worked data on the EEO-1 Report (Component 2) has issued a report concluding that the data are unsuitable for determining whether it is likely that an employer has engaged in unlawful conduct. The long-awaited report by a panel convened by...
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June 24, 2022
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Category: Compensation

New York State Is Latest Jurisdiction To Mandate Pay Disclosure

The New York state legislature has passed and sent to Governor Kathy Hochul for her expected signature a bill that will require covered state employers to include salary and other information in their job postings. Once signed into law, Senate Bill 9427 is scheduled to go into effect in 270 days, likely sometime early next year. The New York bill...
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