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meaningful statistical analysis. SSEGs should contain a total of at least 30 employees, and five or more employees in each gender group (male/female) or each race group (minority/non-minority). The compensation of employees that are not similarly situated enough to be grouped in an SSEG must be evaluated using non-statistical methods. However, if the contractors SSEGs do not encompass at least 70% of the workforce at the establishment under review, OFCCP will carefully scrutinize the statistical analysis and non-statistical evaluations
3. The contractor must perform an annual statistical analysis that accounts for factors that legitimately influence compensation, such as experience, education, performance, productivity, location, etc. A Multiple Regression Analysis must be performed for establishments with 500 or more employees. (The Complete AAP software includes a Multiple Regression Analysis.)
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4. The contractor must investigate all statistically significant pay disparities, defined as two or more standard deviations. Appropriate remedies must be provided for any statistical disparities that are not explained by legitimate factors. OFCCP will seek two years of back pay adjustments for unexplained disparities.
5. The contractor must maintain for two years sufficient documentation to explain and justify its SSEGs, the exclusion of certain employees from SSEGs, factors included in the statistical analysis, and the type of statistical analysis. Documentation of any non-statistical evaluations, as well as any follow-up investigations and any pay adjustments made must also be retained for two years.
6. The compensation analysis and all supporting documentation must be made available to OFCCP during a Compliance Review. OFCCP may also review any personnel record and conduct any
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employee interviews it deems necessary to verify the accuracy of any representations made by the contractor.
OFCCP will assess whether the contractor's compensation evaluation program reasonably complies with the Guidelines and may suggest changes to the contractor's program to improve its conformity with the Guidelines. The contractor's compensation evaluation program may be rejected if OFCCP determines that the program does not reasonably comply with the Guidelines, or if it is determined during future Compliance Reviews that the suggested changes to the program were not implemented.
Contractors who do not wish to make their self-evaluation programs available to OFCCP may certify that they have complied with the regulations. The certification must be in writing, signed by a duly authorized officer under penalty of perjury, and the certification must state that the contractor has performed a com
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