Office of Federal Contract Compliance Programs

Well known asset management company State Street Corporation will pay $5 million to settle allegations of pay inequity raised by the Office of Federal Contract Compliance Programs (OFCCP) in an audit. OFFCP alleged that the company paid female executives less than men and black executives less than whites at its Boston headquarters. The landmark settlement agreement is the largest back pay settlement collected by OFCCP since 2015.

By way of background, OFCCP audits federal contractors and subcontractors for compliance with workplace affirmative action and nondiscrimination requirements. OFCCP conducted a compensation analysis of State Street’s downtown Boston office in December 2012. According to OFFCP, that analysis revealed that, since at least December 2010, there were “statistically significant” disparities in compensation between male and female workers and black and white workers even when “legitimate factors affecting pay” such as performance, experience and education were taken into account.
Continue Reading The OFCCP strikes, puts State Street’s pay inequity problem out on Front Street

Many federal contractors and subcontractors use a calendar year for their written affirmative action plans (AAP’s). That means their AAP’s are typically being reviewed and revised shortly after January 1. Working with companies over the years to help them develop and revise AAP’s and advising companies during OFCCP audits, we have come to appreciate the challenges for contractors in the process.
Continue Reading For Many, “It’s That Time of Year”: Affirmative Action Plan (AAP) Revision

Speaking on July 27 to the Industry Liaison Group’s 29th Annual National Conference to an audience of human resources professionals for the nation’s top companies, the Office of Contract Compliance Director Patricia Shiu emphasized the OFCCP’s top initiatives. She stated that the OFCCP will focus on pay equity and compensation discrimination and affirmative action for military veterans and persons with disabilities. The OFCCP issued proposed rule-making establishing “benchmarks” for recruiting and hiring of veterans in April 2011 and is presently evaluating the comments it received. Shiu characterized those as benchmarks rather than quotas or ceilings.Continue Reading OFCCP Director Shiu Outlines Agency Objectives