OFCCP formally announced in a federal register notice that it does not plan to request, accept, or use the Component 2 pay data collected by EEOC in the EEO-1 report.

The reason for this is due to the highly aggregated format used in the data collection. The numbers collected are too broad and do not provide the level of detail OFCCP needs to compare and identify pay disparities among similarly situated employees. Engaging in further analysis would also place an unnecessary burden on agency resources which presently would not support providing “the human capital and technical capacity that would be required to make use of the data.”Currently, OFCCP already receives employee-level pay data from federal contractors during audits, which it considers much more useful in determining potential pay discrimination issues.

OFCCP states it will continue to receive EEO-1 Component 1 data for the purpose of evaluating federal contractor compliance with E.O. 11246 and 41 CFR 60-1.7.

Editor’s Note: This post was originally published on Circaworks.com. In April of 2023, Mitratech acquired Circa, a leading provider of inclusive recruiting & OFCCP compliance software. The content has since been updated to reflect our expanded product offerings, evolving talent acquisition compliance regulations, and best practices in HR management.