OFCCP Sends Request to Rescind Compensation Guidelines to the OMB

by Patrick Nooren
EVP Biddle Consulting Group

The OFCCP submitted an official notice to the Office of Management and Budget (OMB) of their intent to rescind the compensation analysis standards and guidelines originally published in June, 2006. This should come as no surprise to BCG clients and BCGI members given the lack of success the OFCCP has had in enforcing these standards. In hindsight, the writing should have been on the walls from the onset. While overall technically, statistically, and legally sound, requiring the Agency to use multiple regression analyses (MRA) that meet certain minimum sample size requirements to support claims of compensation disparities creates a very difficult, uphill battle for enforcement. Look for the OFCCP to issue new guidelines in the future with softened text regarding the use of multiple regression and new, additional content regarding their current enforcement tactics related to investigating individual disparities (much like Equal Pay Act investigations).

Stay tuned.