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Compensation Analysis

Compensation Analysis and OFCCP

The OFCCP released the (now rescinded) compensation analysis Standards and Guidelines in 2006 and, for the first five years since their release, had been "less than successful" when it came to enforcement. This shouldn't be overly surprising given the complexity of compensation and the rigorous, litigation-worthy requirements outlined in the Standards. This all changed with the inauguration of President Obama on January 20, 2009, the signing of the Lilly Ledbetter Fair Pay Act nine days later (the first bill signed into law by President Obama), the multiple attempts at passing the Paycheck Fairness Act, and the creation of the National Equal Pay Enforcement Task Force. The message has never been more clear--compensation equity is a very high priority for the Obama Administration. Given the pressure to succeed coming directly from the Whitehouse, we have seen both the EEOC and OFCCP dramatically increase their enforcement of systemic discrimination (i.e., larger, more pervasive, system-wide cases) including compensation issues, and with more conciliation agreements related to compensation issues in the past year than ever before, their efforts have largely been a success.

Pay Equity Analysis Using Multiple Regression

It is commonly known that under Executive Order 11246, federal contractors must conduct ongoing analyses of their compensation systems as part of their Affirmative Action Planning / EEO Compliance efforts. What is not commonly known is that the OFCCP is aggressively using multiple regression as the tool with which to investigate systemic compensation disparities. The OFCCP has hired statisticians to assist in their efforts to bring statistical analysis into mainstream OFCCP audits. Conducting multiple regression analyses is not like running availability analyses for an AAP, they are more complex and require the assistance of statisticians (which, not coincidentally, is why the OFCCP took so long to "ramp-up" their efforts in this area--it's not easy). Thankfully, Biddle Consulting Group (BCG) employs a team of seasoned, nationally-renowned, experts that have successfully defended contractors in hundreds of high-stakes audits involving compensation and regression. The truth is that statistics and data now drive compensation investigations. The OFCCP has its experts. Contractors need their own experts. It's that simple.

Want to know more about conducting OFCCP style compensation analysis?

Compensation Analysis Software - COMPARE
Compensation Analysis Book by Patrick M. Nooren, Ph.D.

For more information about our pay equity and multiple regression analysis services, please contact Biddle Consulting Group, Inc. at (800) 999-0438 or