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    The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a Notice of Proposed Rule Making (NPRM) today titled “Government Contractors, Prohibitions Against Pay Secrecy Policies and Actions” which implements new federal contractor pay transparency requirements for applicants and employees.  The NPRM is currently scheduled to be published in the Federal Register on September 17, and all comments must be received within 90 days after the date of publication. 

    Within a span of only six months, President Obama has issued six significant Executive Orders and Presidential Memoranda that expand federal contractors’ obligations and potential legal liabilities for non-compliance with the laws that govern their workers.  These actions continue the Obama Administration’s trend of expanding regulatory oversight and enforcement directed at the federal contractor community, on a cross-agency basis. Additionally, these actions reflect President Obama’s push to leave a legacy for American workers, particularly related to compensation, as he nears the end of his second term as President.

    To read more about President Obama’s legacy for federal contractors, please click here.

     

    On August 19, 2014,the OFCCP issued Directive 2014-02 clarifying federal contractor’s nondiscrimination obligations on the basis of sex including discrimination on the basis of gender identity and transgender status.  Directive 2014-02 sets forth the policy that the OFCCP will fully investigate and seek to remedy instances of sex discrimination that occur because of an employee’s or applicant’s gender identity or transgender status.  Citing the recent EEOC decision in the case of Macy v. Holder, which held that discrimination because a person is transgender is sex discrimination in violation of Title VII, the OFCCP directs compliance officers to conduct complaint investigations and compliance evaluations related to transgender status and gender identity in accordance with the directive.

    The Directive is effective immediately.  For more information on how this may affect your current policies and practices please contact either your attorney at FortneyScott or human resources consultant at WorkPlace HR (www.workplacehr.com).

Senator Menendez Requests that the Fortune 500 Companies Complete a Diversity Survey

By David Fortney, Esq.

See the letter from Senator Robert Menendez, Democrat from New Jersey, requesting that the Fortune 500 companies complete a Diversity Survey Instrument by May 1st.

 

The survey requests information about minority representation on each company’s board and senior management and in the company’s procurement of goods and services.  The Senator states that he is “conducting the survey to gain a better understanding of Hispanic participation in our corporate executive teams, board rooms and procurement practices.”  Senator Menendez further explains that he “intend[s] to have a public presentation of the data compiled from companies that participate, as well as shed light on those that do not.”

 Please contact the FortneyScott attorney with whom you work to discuss how you may want to respond, particularly because the survey requests information that otherwise typically would not be in the public domain and need not be disclosed to the government under existing reporting procedures.

This update is for general information purposes only and is not intended to provide legal counsel or advice.  Employers should retain experienced legal counsel to obtain advice about the effects of these developments on their particular circumstances.

For more information, please contact David Fortney, Esq. at dfortney@fortneyscott.com.