OFCCP WEBINAR: Clarifying the Confusion about OFCCP Statistical Tests

THURSDAY, FEBRUARY 2, 2023 at 2:00 PM EDT

Webinar designed for attorneys and HR professionals. Free statistical software for an OFCCP listed statistical test will be provided to attendees.

This webinar will clarify confusion and misconceptions about the statistical tests listed in the OFCCP’s Revised Directive 2022-1. Many commentators say they are confused about what some of the eight statistical tests in the OFCCP Revised Directive are. Don’t let a lack of understanding prevent you from picking the best test(s) for you.

This webinar will give you an understanding of each of the 8 tests listed in the OFCCP Revised Directive:

  1. multiple regression analysis
  2. decomposition regression analysis
  3. meta-analytic tests of z-scores
  4. compa-ratio regression analysis
  5. rank-sum tests
  6. career-stall analysis
  7. average pay ratio
  8. cohort analysis

Free software to perform Rank-Sum tests (#5) will be provided to attendees, upon request.

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.

Presenter

Dr. Daniel S. Levy, is the lead Labor Econometrician and designer of EquityPath. He has extensive experience in labor economics, discrimination testing, econometrics, and software design. He has analyzed pay equity issues for the Department of Labor and has served as an expert witness in state and federal courts. Previously, Dr. Levy was the Global Leader of Economic and Statistical Consulting for Deloitte Financial Advisory Services and Arthur Andersen Business Consulting. He has held research and consulting positions at Charles River Associates, the Rand Corporation, SPSS Inc, and The University of Chicago Computation Center. His PhD is in Economics from The University of Chicago.

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