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Obama Administration to Keep a Keen Eye on Employer Pay Practices
An issue that was a priority of the Obama Administration in 2014 is certain to remain one this year: employer compensation practices. Earlier this week, SHRM filed comments with the Office of Federal Contract Compliance Programs (OFCCP) on its recently announced proposed rule that relates to collecting and publishing employer compensation data for federal contractors.
SHRM strongly supports nondiscrimination in compensation and believes that compensation decisions should be based on an individual’s qualification and ability to perform a job. The OFCCP’s rule, however, is misguided in its attempt to address pay disparities through new and expansive data collection.
In particular, SHRM is concerned with the following aspects of the proposed rule and noted them in its submittal to the agency:
In addition to highlighting problems with the specifics of the proposed data collection, SHRM’s comment challenges the OFCCP’s belief that these “Equal Pay Reports” will help the agency direct its enforcement resources. As SHRM’s comment states, “Our members’ experiences with evaluating their own pay systems strongly imply that the use of aggregated compensation data is not an effective tool for identifying discriminatory pay practices, particularly in light of the limitations discussed above regarding the data points the OFCCP plans to collect.”
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