The Office of Federal Contract Compliance Programs (OFCCP), which enforces the federal affirmative action laws, has committed resources to remedying systemic compensation discrimination.
Systemic compensation discrimination is based on disparities that are statistically significant, those that could not be expected to have occurred by chance. The OFCCP usually alleges a pattern of discrimination resulting from a company's standard operating procedure.
Under its proposed guidelines, the OFCCP will use statistical analysis known as multiple regression (tool for understanding the relationship between two or more variables typically a single dependent variable and several explanatory variables) to review the influence of legitimate factors on compensation.
For example, in a sex discrimination case involving salaries, a multiple regression analysis might examine sex, education, work experience, seniority, and performance ratings. The OFCCP might argue that salary is a function of gender.
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