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natory practices.
Due to limited resources, OFCCP has indicated it will continue to initially analyze contractors' compensation by salary grade in spite of the fact that this methodology does not meet Title VII standards. The female average salary will be compared to the male average salary in each salary grade. Likewise, the average salaries of minorities and non-minority in each salary grade will be compared. OFCCP will use these comparisons to determine if a potentially significant wage disparity exists that may warrant a more comprehensive analysis that comports with the Guidelines.
OFCCP will also assert a compensation discrimination violation if the contractor establishes lower compensation rates for jobs predominantly occupied by women or minorities based on the sex, race or ethnicity of the employees in those jobs. For example, a contractor that adopts a market survey to determine wage rates for jobs, but
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establishes the rate for predominately women or minority jobs significantly lower than the market rate, while establishing for predominately male or non-minority jobs the full market rate will be considered evidence of a violation of this provision.
On June 16, 2006, OFCCP also published the Voluntary Guidelines for Self-Evaluation of Compensation Practices ("Guidelines") that contractors can use to evaluate their compensation practices. As indicated in the title, these Guidelines are voluntary. OFCCP regulations require contractors to evaluate their compensation system to determine whether there are disparities based on gender, race or ethnicity. The regulations do not, however, specify any particular method of evaluation. The Guidelines are intended to provide suggested techniques for complying with this self-evaluation requirement. While contractors are free to choose their
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own method of evaluation, OFCCP has provided an incentive for contractors to follow the Guidelines. If a contractor implements a self-evaluation system that conforms to the Guidelines, OFCCP will coordinate its monitoring activities to the results of the contractors own analysis, provided the contractor meets the following requirements:
1.The self-evaluation must be performed on Similarly Situated Employee Groupings ("SSEGs") consisting of employees that have similar job duties and responsibilities and occupy positions that require similar skills and qualifications. Other factors that have a significant bearing on whether employees are similarly situated may also be considered, such as department or functional unit, employment status (e.g. full-time vs. part-time), and compensation status (hourly vs. salaried vs. commissioned), etc.
2. A reasonable attempt must be made to produce SSEGs that are large enough for a
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