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.
In June 2021, the Illinois Equal Pay Act (IEPA) was amended to add a requirement for certain Illinois businesses to obtain an equal pay registration certificate (EPRC). The Illinois Department of Labor (IDOL) issued its long awaited proposed rules regarding the EPRC requirements on May 20, 2022. The proposed rules are subject to a 45-day comment period, which has now passed, followed by an internal review, and a public hearing on August 9, which may result in additional changes before they become final.
However, some Illinois employers have already received notice of a deadline to file their Application for Certification before the rules are finalized. Therefore, a careful review of the proposed rules is helpful as we anticipate issuance of the final rules. While the proposed rules largely mirror statutory requirements (the basics which were laid out in prior posts here and here), IDOL has clarified or provided additional information on a number of topics.
There have been several developments in Irish employment law in recent months. These developments include requirements for gender pay gap reporting, expanded protections for whistleblowers, family leave and flexible work arrangements provisions, a recent court decision relevant to the gig economy, and the European Commission’s infringement notice against Ireland for its failure to comply with the European Union’s Directive on European Works Councils. Employers should examine their policies and procedures to ensure that they are complying with these new measures.
Gender Pay Gap Reporting
Last year, Ireland enacted the Gender Pay Gap Information Act (the “Act”), which requires organizations to report their gender pay gap metrics. Regulations under the Act went into effect May 31, 2022 and require organizations with more than 250 employees to report their gender pay gap information in 2022.
On July 28, 2022, the Office of Federal Contract Compliance Programs (OFCCP) issued important clarifications about the certification process through its Federal Contractor Portal (Portal). As previously reported, the Portal is new this year and required federal contractors and subcontractors (contractors) to certify the status of their annual affirmative action plan (AAP) for each establishment before June 30, 2022. In its bulletin update communicated to subscribers by email, the OFCCP stated that — although the portal remains currently open — it has not extended the June 30 deadline and that contractors that have not yet registered and certified their AAP compliance should do so as soon as possible. But it also explained that the agency will consider those contractors that requested assistance from the OFCCP on or before June 30, 2022 — but have not yet completed registration or certification because of a pending request for assistance — to have met the June 30 deadline.
The first quarter of 2022 continued the trend of increasing regulation of the workplace by state and local governments. Although it is not possible to discuss all state and local laws, this update provides an overview of recent and upcoming legislative developments to help you and your organization stay in compliance. (Please note that developments related to issues such as minimum wage rates and COVID-19 are not included.)
On Equal Pay Day (March 15, 2022), President Biden issued an executive order aimed at advancing the effectiveness in federal contracting by promoting pay equity and transparency in tandem with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs’ (OFCCP) first formal directive (DIR 2022-01) during the Biden administration on pay equity in federal contractors. The directive addresses the OFCCP’s position on obtaining compensation related documents sought during the agency’s audits, which includes pay equity review.