This afternoon, the Wall Street Journal (WSJ) released a major investigative report which found that the OFCCP’s aggressive tactics and demands for expansive data collection were only minimally successful in identifying pay discrimination. The WSJ report is significant because its findings suggest a fundamental disconnect between the OFCCP strategy for tackling pay discrimination and its overall results.
Although Congress increased OFCCP’s budget by almost $20 million over the past five years, over that same period OFCCP has collected less settlement money than it collected in 2004 alone. These meager numbers suggest “the agency has wasted resources tackling a problem that hardly exists.” Further, Congress has responded to the Agency’s performance by slashing OFCCP’s budget by $1.1 million and by refusing to provide for additional employees to serve as pay-analysis experts.
OFCCP’s Director Pat Shiu told WSJ that the low numbers were a direct result of her efforts to focus the agency on complex cases, such as systemic pay discrimination involving multiple workers rather than straightforward issues such as hiring. New reporting rules issued under Director Shiu require contractors to submit a spreadsheet of all employees’ compensation. WSJ reports that OFCCP critics and supporters agree that the agency lacks the statistical expertise to analyze contractor data so that audits that previously took six months now take two to three years. Further, the numerous requests for data suggest the agency takes on “each audit assuming there is discrimination exists, if only they could find it.”
We will continue to follow this story but if you have questions, please contact your FortneyScott attorney.
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