OFCCP Revises Recent Directive on Compensation Analysis

On August 18, 2022, the U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) revised Directive 2022-01 (DIR 2022-01) to clarify its earlier guidance addressing federal government contractors’ regulatory requirement to evaluate compensation as part of their affirmative action programming. Originally referred to as the “pay equity audit,” OFCCP Director Jenny Yang noted in her accompanying DOL blog post that the change in terminology from “pay equity audit” to “compensation analysis” was made to avoid any confusion regarding the nature of contractor obligations.

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