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The Trump administration wants to provide federal contractors more voice in U.S. Labor Department pay-disparity investigations, but the agency’s long-awaited new guidance may not be the dramatic shake-up that management-side lawyers had hoped to see.
The Labor Department issued a directive late last week that replaced Obama-era policy on how the agency analyzes compensation in discrimination audits. The Labor Department’s contract compliance arm conducts these audits, which examine the extent to which contractors are abiding by federal anti-discrimination provisions.
The business community loathed the Obama-era policies, which restricted some of the evidence companies might want to use to show their compensation structures are not discriminatory. The new directive gives greater weight to employers’ compensation data sets, allows some anecdotal evidence to explain any pay disparities and promises to provide more transparency.
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