Bloomberg Law
March 15, 2022, 9:01 AMUpdated: March 15, 2022, 7:13 PM

Pay Audits Get Closer Look From Federal Contractor Watchdog (2)

Rebecca Rainey
Rebecca Rainey
Senior Reporter
Paige Smith
Paige Smith

The U.S. Department of Labor’s federal contractor watchdog issued a new directive that would more closely scrutinize the pay equity audits of companies that work with the federal government.

The directive from the Labor Department’s Office of Federal Contract Compliance Programs took effect Tuesday and clarifies federal contractors’ mandate to ensure fair compensation practices. The agency enforces federal anti-bias laws and affirmative action obligations among contractors.

The new instructions state that federal contractors are expected to hand over all information about their internal pay analyses when being audited by the office, including documents that contain legal advice.

“Contractors cannot withhold ...

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