HR-3D (www.hr-3d.com) is a compensation and compliance solutions service provider serving 8a, small and mid-tier federal/defense contractors. For more than 17 years they have provided market-pricing-based DCAA/DOL/OFCCP compliant compensation infrastructure services, executive compensation support, business capture incentive plans, RFP labor category pricing support and AAP services for their clients. The following is an excerpt from their Webinar “Compensation Compliance for Federal Contractors: The Rules have Changed!” where HR-3D describes the current position of the OFCCP and how you can best deal with them.
The OFCCP, or Office of Federal Contract Compliance, is responsible for ensuring that federal contractors are following the laws associated with Equal Employment Opportunity Programs. The office is fairly notorious for their ruthless collection of data. If you do not have a compliant compensation infrastructure established in your business, you really should look into creating one as soon as possible. Here are a few of the things that the OFCCP will be looking for
The OFCCP will aggressively check the wages of your employees right off the bat. Make sure that you know what data they will have access to. They will be looking for “W-2 Earnings,” and “1099 Earnings” if you have contractors. They will also check base salary, holiday pay, overtime pay, hourly wages and shift differential commissions.
If you offer stock options to employees you will need to be able to define these and lay them all out on the table. Make sure that you can show these options for every level of employee, including executives and other high-level individuals within your company. The OFCCP will be on the lookout for any discrepancies in your reporting, so make sure not to present any.
The OFCCP will also want information on any incentive plans offered by your business. This includes both long and short-term incentive plans, as well as any other elements related to compensation such as paid leave, health benefits and retirement benefits. Essentially, they will want to know all of the ways your employees are compensated.
These tips can help you get started when building a compliant compensation infrastructure. For more information on the OFCCP, check out their webinar, “Compensation Compliance for Federal Contractors: The Rules have Changed!”