by Patricia A. Schaeffer, Vice President-Regulatory Affairs
David Cohen, President of DCI Consulting Group Inc. reports that contractors have noticed a change in the compensation screen used by OFCCP at the desk audit stage in the Mid-Atlantic region.
OFCCP’s Three-Prong Test:
OFCCP uses a compensation screen as part of its Three-Prong Test to determine if more sophisticated analyses should be conducted on the contractor’s data. If a pattern exists, OFCCP will request data from a contractor to conduct a 12 factor “mini-regression analysis.” The purpose of the compensation screen has been to determine the percentage of SSEGs in which the average salary for women and men or minority and non-minorities differs by at least two percent.
New Compensation Screen and Implications:
Recent OFCCP communications to contractors in the Mid-Atlantic region, however, state the screen is now five percent, not two percent. In other instances, DCI has noticed that some OFCCP district offices are not using the Three-Prong Screen at all during the desk audit analysis and are sending the 12 Factor letter to contractors without identifying any indicators.
The implications of this change are significant for those contractors that only conduct analyses at locations failing the OFCCP’s Three-Prong Test. These contractors risk not knowing there is a potential problem if they rely solely on the results of the Three-Prong Screen to make that determination.
DCI will continue to monitor these developments and provide updates as they become available.
May 30, 2007