Title VII and Pay Equity under Directive 307


Title VII and Pay Equity under Directive 307
a webinar featuring Dr. Dan Kuang presented by Compensation Connection


Tuesday, July 16, 2013
10:00 AM PDT

Registration Information:


Dan Kuang, Ph.D., Biddle Consulting Group

Dan Kuang, Ph.D.,
Biddle Consulting Group

Webinar Description:

Under the Obama Administration, federal enforcement agencies (e.g., EEOC and OFCCP) have been tasked with responsibility of bridging the wage gap between Men/Women/Minorities and have trained their sights on pay equity discrimination.  Not surprisingly, the rise in OFCCP audit activities and enforcement actions taken by both the EEOC and OFCCP has caught many companies unprepared and largely compromised.  Now with the OFCCP’s release of Directive 307, the OFCCP has provided a classic roadmap on how they will investigate and enforce pay equity issues.  Directive 307 is an important document.  It is a culmination of nearly two decades of lessons learned and the strategies therein represent the breadth of challenges a company can expect to face in any Title VII pay equity discrimination matter.  In this presentation Dr. Dan Kuang, will expose key components of Directive 307 and discuss general and current compensation analysis methods and strategies in pay equity investigations.

About Dan Kuang, Ph.D.:

Dan is Vice President of Legal and Audit Support Services with Biddle Consulting Group. He  has extensive experience developing and validating tests and measures for personnel selection and performance assessment. Additionally, he has considerable experience evaluating, supporting, and challenging employment practices, procedures, and tests in the context of litigation support. His expertise in applied statistics is firmly grounded by his years of experience in high-stakes educational testing and medical health research. In his current role, his primary responsibility is to ensure that clients are in compliance with Federal guidelines and regulations, and are positioned to respond to external legal threats and challenges.

Event Presented by:

Compensation Connection

Latest Issue of EEO Insight Focuses on Compensation Analysis Compliance

The Office of Federal Contract Compliance Program’s (OFCCP) Directive 307 surrounding Compensation Analyses has arrived. The release of the Directive has prompted Biddle Consulting Group to focus the latest issue of EEO Insight on compensation analysis compliance and practical application. EEO Insight Volume 5: Issue 1 has three power-packed articles dealing directly with compensation. The special compensation edition includes an article that delivers an easier-to-understand approach to the Directive, as well as two additional articles that help human resources practitioners appropriately apply the statistical methods behind compensation analysis.

Download the Latest Issue of EEO Insight

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EEO Insight subscribers receive free PDF issues twice a year. Join the BCG Institute for Workforce Development (BCGi) for free and automatically receive each issue electronically. If you’re looking for past issues, the EEO Insight archives on BCGi (over 50 articles and growing) are available to BCGi Platinum members, as are additional compensation resources, including recorded webinars wherein, Dr. Patrick Nooren distills Directive 307 and discusses applications of the new Directive for HR practitioners. BCGi Platinum members also have access to other EEO tools including a 2010 Census Crosswalk (a translation or crosswalk of the 2000 to 2010 changes), Platinum-only webinar training sessions, recorded webinar training archive, and an adverse impact calculator, to name a few.

BCGi Summer Classroom Series: Compensation Analyses

Need a refresher course in Compensation Analysis? BCGi is offering a summer compensation classroom series that will cover the statistics behind compensation analyses. <more info…>

BCGi’s mission is to inform and equip human resource professionals with the HR EEO training necessary to enhance their productivity, amplify their competitive marketability, and escalate their technical capabilities in equal employment opportunity (EEO), OFCCP compliance, affirmative action planning, compensation analysis, employment law and discrimination statistics, test development, test validation, and a variety of human resource topics with a focus on EEO.

As an HRCI Approved Provider, BCGi provides online HR EEO training created and presented by experts in the industry.

OFCCP Requests Additional Compensation Information in Desk Audit Follow-Up

Since the announcement of Directive 307 there has been much speculation about how the OFCCP will audit compensation during a compliance evaluation. Nearly two months after the announcement (and a second wave of CSAL notifications) we are beginning to see some of the OFCCP’s direction through follow-up letters at the Desk Audit phase.

In a recent Desk Audit, the auditor called the contractor and requested additional compensation information.  During the call the auditor asked about the contractor’s compensation practices, the factors that lead to compensation decisions and classifications, as well as, what the contractor considered total compensation (e.g. overtime, commissions, etc.). Shortly after the call, the contractor received a follow-up letter from the auditor requesting that they submit the additional data discussed during the call.  In addition to data, the OFCCP also requested information about the contractor’s compensation policies, guidelines, grading systems, and, internal compensation audits as required in CFR 60-2.17 (b) (3).

Below is an excerpt from that follow-up letter showing the additional information requested by the OFCCP:

  1. Unique Employee ID number
  2. Gender [1]
  3. Race/Ethnicity [2]
  4. Job Title
  5. Grade
  6. Level
  7. Department
  8. Date of hire (mm/dd/yyyy)
  9. Date of last change in grade/job title (mm/dd/yyyy)
  10. Part-time vs. full-time status for all employees
  11. Exempt vs. non-exempt status
  12. Location
  13. Years of relevant experience
  14. Highest degree attained
  15. Year in which highest degree attained
  16. Rating received at most recent performance evaluation
  17. Market reference system used for the different salaries
  18. Annual base salary or hourly wage for full-time employees during the review period [3]
  19. Hourly wage and number of hours worked during the review period for part-time employees [4]
  20. Other paid allowance, if any, such as commission pay, overtime pay, bonus pay or shift differential [5]. Report each allowance in separate data columns.
  21. SSEG’s if developed [6]

Please also provide:

22. A copy of any/all compensation policies and guidelines including but not limited to:
a.  Policies or guidelines for annual performance appraisals, promotions and bonuses

23. A detailed written explanations of grade and level systems

In addition, we are requesting any internal compensation audits you have performed as stated in CFR 60-2.17 (b) (3) and a list of all individuals involved in the compensation process. Furthermore, please provide any additional information that you feel may better explain your company’s compensation system including other factors that influence compensation.

At this stage of the investigation, OFCCP’s goal is to better understand your company’s compensation practices. Therefore, if any of the items requested above are not readily available, please contact us to discuss the specifics of the situation so that the best available information and data is provided in a timely manner.

[1]  If gender is recorded using alpha or numeric codes, provide code definitions.
[2] If race/ethnicity is recorded using alpha or numeric codes, provide code definitions.
[3l Compensation  is reported for all full-time employees, including those on sales commission only. Compensation should be reported as base annual salary (excluding bonus and fringe benefits) or hourly pay rate.
[4] Compensation  for part-time employees should be reported as an hourly wage.
[5] Shift information  is requested to determine whether employees receive pay differentials dependent on shift worked. If an employee works rotating shifts, information  on hours worked in each shift should be submitted.  Shift differential should be reported separately from the base annual pay or hourly rate.
[6] SSEG refers to “similarly situated employee groups”

If you have questions…

If you have questions about Compensation Directive 307  or are facing an OFCCP audit, contact us.
We’re happy to help.

Additional Resources:

Recommendations and Strategies for Implementing the New OFCCP Directive

Understanding OFCCP Compensation Directive 307 – Part II
a BCGi Platinum Webinar on March 22nd

Looking for recommendations and strategies for implementing OFCCP Directive 307? Join Biddle Consulting Group’s Executive Vice President, Dr. Patrick Nooren, and our Vice President of Legal and Audit Support Services, Dr. Dan Kuang, for an in-depth review of the OFCCP’s new compensation Directive.  Building on Part I (watch Part I below), this follow-up webinar will go beyond unwrapping the new compensation Directive as laid out by the OFCCP. The agenda for our upcoming Part II webinar includes a brief recap of our previous discussion, as well as practical implications for the federal contractor community and recommendations for future compensation analyses and strategies. 

Registration Information:

Date: Friday, March 22, 2013
Time: 10:00 AM – 11:30 AM Pacific Time
Cost: $99; FREE for BCGi Platinum Members
To Register, go to: https://bcginstitute.site-ym.com/store/view_product.asp?id=1587021

Just in case you’re wondering…

How does the March 22nd BCGi Platinum webinar differ from the DOL Webinar on the Directive?

The DOL will concentrate mostly on unpacking the information in the Directive.  Patrick and Dan’s approach will be to discuss what organizations should actually do with that information. Essentially, they will be sharing how to implement the Directive not just talking about what is contains.

Have more webinar questions? Contact BCGi Director Heather Patchell at bcgi@biddle.com


If you missed Patrick and Dan’s March 6th review of the compensation Directive, the Part I webinar video is below. It’s a great way to prepare for the March 22nd Platinum webinar!

(Note: If you’re unable watch the above YouTube video, visit http://www.bcginstitute.org/?webinar030613)