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    The Department of Labor ("DOL") announced today that it will issue final regulations to implement Executive Order 13658, "Establishing a Minimum Wage for Contractors," which was signed by President Obama on February 12, 2014. The final regulations will require the payment of $10.10 per hour to covered employees working on most government contracts.

    The OFCCP has released its revised Scheduling Letter and Itemized Listing, almost immediately after announcing that the White House’s Office of Management and Budget (OMB) approved the new document. Although the revised documents do not include many of the Agency’s proposed changes, OFCCP added in new requirements under Section 503 and VEVRAA and the revised compensation data request is more expansive than the prior letter.  In a significant change, compensation data is to be reported on an individualized basis. The new Scheduling Letters will be used after October 15, 2014.  Contractors are advised to review the new reporting and disclosure requirements in advance of that date.
    On September 30, 2014, the OFCCP is scheduled to publish a notice in the Federal Register announcing that the Office of Management and Budget (“OMB”) has approved a revised Scheduling Letter that is used for the commencement of OFCCP compliance audits for non-construction supply or service Federal contractors.  The changes expand the data that Federal contractors must provide to the OFCCP at the beginning of an audit, in particular requiring the production of more detailed, individual employee compensation data and hours worked in response to the revised Item 11 requirements.  In addition, contractors will be required to submit personnel activity data by the five specific race and ethnicity subgroups, instead of the “minority” and “nonminority” categories currently required. Once the new Scheduling Letter is available, FortneyScott will provide more details on Federal contractors’ new obligations and the relevant deadlines.  A copy of the OFCCP’s Federal Register notice is available here.
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.