On February 26, the Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) rescinded its "Voluntary Guidelines" and "Compensation Standards" and issued a new Compensation Directive detailing fundamental changes to compensation investigation procedures.

Instead of applying regression analyses based on Similarly Situated Employee Groups (SSEGs), the new Directive establishes that OFCCP will apply case-specific investigation protocols. These protocols will involve any combination of analytical methods, including, but not limited to statistical analysis, non-statistical analysis including cohort analysis, and anecdotal evidence collected as part of its investigation into compensation discrimination. The Directive indicates that investigations may be broad, including a review of policies and practices that may unfairly limit a group's opportunity to earn higher pay, and investigation into systemic, small group and individual compensation discrimination issues. Read more.