RACE/ETHNICITY SUBGROUP ANALYSIS IN COMPENSATION ANALYSES: A CHANGE IN OFCCP PROTOCOL

OFCCP’s recent webinars on Directive 307 stated that compensation investigations will focus on individual race/ethnicity differences. If that is the case, a number of analytic questions require clarification.

  • Is the comparator group “White” or is the comparator group “the highest paid group” such as in adverse impact analyses conducted in accordance with 60-3 and the Uniform Guidelines?
  • If it is based upon “the highest paid group” is that the highest mean, median or some other measure?
  • Does the comparator group change across each pay analysis group or will it remain constant within an AAP?
  • Must the comparator group be of a minimum size such as the 2% minimum for adverse impact analyses?
  • Will small race groups (e.g., groups with 1 – 4 employees) be coded separately, grouped together, or combined with larger race groups?

The Center for Corporate Equality has submitted a series of questions to OFCCP on this matter. We are hopeful that OFCCP will respond with specific policies and guidance so that the contractor community can effectively perform their due diligence in investigating pay disparities in the workforce. Stay tuned!

by Kayo Sady and Jana Garman, DCI Consulting Group

Authors:
Kayo Sady, Ph.D.

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