Federal contractors need to watch this issue very closely. The White House hasn’t released a copy of the official Presidential executive order, but only a fact sheet. So we can’t tell you all the ramifications of this order—except to say that it can be a mine field for employers. So far, two critical issues haven’t been addressed:

On August 24, 2018, the Office of Federal Contract Compliance Programs (OFCCP) changed its approach to investigating compensation discrimination. The OFCCP issued Directive 2018-05 entitled “Analysis of Contractor Compensation Practices During a Compliance Evaluation.” This new directive rescinds Directive 2013-03 entitled “Procedures for Reviewing Contractor Compensation Systems and Practices.” The 2013 document is more commonly referred to as Directive 307.