Benefits and Compensation

OFCCP Pay Equality Chat–Teach Workers How to Negotiate for Fair Pay

Rob from the poor and give to the rich, says consultant Joseph DiMisa. That’s how to use limited Pat Shiu, director of the Office of Federal Contract Compliance Programs (OFCCP), opened the recent Equal Pay Chat by saying that “… we can and must do more—from updating our regulations and collecting better data to working with employers to improve compensation systems and teaching workers how to negotiate for fair pay.”

Latifa Lyles, acting director of the Women’s Bureau (WB), noted that today, full-time women workers earn on average only 81 percent of what their male counterparts earn. For African-American women and Latinas, the wage ratio is substantially lower: 68 cents and 59 cents, respectively. But the real cost of the pay gap is more than 18 or 23 cents on the dollar. The real cost is much higher. The consequences of a pay gap affect women, their families, and our nation’s economy.

Shiu and Lyles were joined by Jennifer Hunt, chief economist at the DOL, and Nancy Leppink, representing the Wage & Hour Division (WHD). Here are some of the participants’ comments, the first of which came from BLR (publishers of HR Daily Advisor) and the agencies’ answers:

Question from BLR: Negotiating skills is cited as a factor in the gender pay gap. Any plans for a skills program?
Nancy Leppink, WHD: Thanks for your question! We’ve got an app for that. The Women’s Bureau knows how important negotiation skills are! http://www.dol.gov/equalpay/apps-winners.htm.

Question from John Frith: Is it true that research shows that when we compare men and women in the same job, same level, same experience and education, that pay is about the same?
Dr. Hunt, Chief Economist: No, especially among more educated workers, the pay gap is as large as 15 percent even when we compare men and women in the same job, same level, same experience and education.


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Question from Guest: Why is there such a gap between pay of men and women doing the same job over the same number of years?
Dr. Hunt: We are not sure, but discrimination is an obvious possibility. Another is that women bargain less forcefully over wages when they are in job negotiations.

Question from Annalyn Kurtz: Is the pay gap still evident looking at just the youngest generation of workers?
Dr. Hunt: Thanks for that question, Annalyn. The pay gap is much smaller at younger ages, which may either mean that the pay gap grows with age or that new generations of women are doing better.

Question from Nikki: How can a woman know if she is being paid fairly? Is there a website for us to check?
Latifa Lyles, WB: We’ve got two resources that might help. We have an equal pay app (www.dol.gov/equalpay) and a Woman’s Guide to Equal Pay document that you can get at the same site.

Question from Jay-Anne Casuga: Hi, Director Shiu! What are the key steps contractors should take in order to be prepared when the OFCCP analyzes their compensation practices during a compliance evaluation?
Patricia Shiu, OFCCP: Hi, Jay-Anne. Contractors should of course already be regularly preparing and updating their written Affirmative Action Plans and proactively reviewing all of their employment practices, including pay, for potential problems and developing action-oriented plans to address them. Contractors should also have their supporting data ready to provide to us. Contractors can expect us to ask them questions about their data, their pay practices, and their self-analysis, and know that we may need to go on-site to do interviews and investigate issues. I also suggest they review the Directive and the FAQs to have a clear understanding of OFCCP’s investigative approach.


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Question from Simone Avery-Legree: What should a female employee do if she is denied a raise and promotion that is given to a male with less experience and education?
Pat Shiu: She should consider filing a complaint with the appropriate federal, state, or local agency such as the Equal Employment Opportunity Commission. If she works for a federal contractor, she could file a complaint with the OFCCP.

In tomorrow’s Advisor, more pay equity questions and answers, plus an introduction to a handy collection of prewritten HR policies.

1 thought on “OFCCP Pay Equality Chat–Teach Workers How to Negotiate for Fair Pay”

  1. regarding the very last question: this is an unfortunate answer. As with anyone denied a promotion, she should ALSO ask herself if education and experience were the critical factors, or if she simply lacked a skill – such as a soft skill – that would play poorly in a managerial (or merely an increased) role. I know plenty of experienced, educated people who would have no business being in a leadership role. To suggest a complaint as the first order of business does a disservice to both the employee and to the organization, as well as to the folks who are actually denied promotions because of non-merit factors.

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