OFCCP’s Scheduling Letter likely will request the individual-level compensation data from supply and service contractors for OFCCP statistical analysis of the contractor’s compensation process. OFCCP will likely perform one or more of the eight statistical tests listed in the Revised Directive. And OFCCP is likely to request documentation of the compensation analysis you performed.

If you can find the right test for your company in advance of any OFCCP review, you can provide the results to OFCCP, potentially averting a protracted review by the OFCCP, ranging across any/all of the eight statistical tests listed above. In addition, knowing the results of one or more of these tests prior to OFCCP review gives you time to change compensation where needed.

While many commentators/experts express ignorance of some of the OFCCP’s named methods, ignorance is not bliss when it comes to this set of well-known statistical methods, especially when your knowledge of these methods can help you choose the right one to understand and explain your company’s compensation policies.