The EEOC and DOL proposed budgets have been submitted and it is clear that both the EEOC and DOL plan on processing a record number of cases and complaints in the 2010 fiscal year. This is evident in the increase in budget dollars and additional staff requested by both organizations. Previous budget cuts resulted in both agencies reducing staff and streamlining processes to do more with less people. If the new budgets are approved, it will reverse budget cuts that have occurred over the years.

The DOL's Hilda Solis announced her budget through a webinar where she requested approximately 1,000 new hires be onboarded to address current short falls within the DOL. She pointed out that 670 of the new hires will focus on frontline enforcement of the regulations. Under the proposed budget, the OFCCP will receive 213 new hires, Wage and Hour division will receive 288 new hires, and the Office of Disability Employment Policy (ODEP) will receive 10 new hires. Following the DOL webinar, the EEOC released their budget and called for 224 additional staff. The increased staff will enable the EEOC to respond to the growing number of charges filed each year and to focus on enforcing the ADA Amendments ACT and the Lilly Ledbetter Fair Pay act.

Government contractors should take special note of the 213 additional staff requested for the OFCCP as it shows renewed focus on compensation for 2010. Under the proposed budget, Hilda Solis has called for a 33 percent increase in budget dollars to fund the 36 percent increase in staff and to improve how the OFCCP processes and investigates compensation audits. The increased budget will allow the OFCCP to bring in external experts to substantiate claims and help the OFCCP improve their investigation and analysis of compensation in an audit. The proposed budget also calls for $2M for a new active case management system. This will streamline the audit process and provide consistency across regions by implementing rules to help compliance officers determine if the case needs to move forward or be released. It will also help identify audits that have fallen through the cracks and provide metrics across the OFCCP regions.

With some of the agencies increasing their staff by as much as 36 % to handle the increased workload, it should serve as warning to all employers to review current employment practices and be prepared for an OFCCP audit or EEOC charge focused on compensation or disability. To compound this issue, Congress could create the perfect storm for the EEOC by passing the Paycheck Fairness Act which provides for punitive damages left out of the Lilly Ledbetter Act. If the Paycheck Fairness Act is passed, the EEOC's increased staff would be poised to respond to new charges and prosecute organizations. The Paycheck Fairness Act may also make it possible for employees, who receive back pay from an OFCCP audit, to file a complaint with the EEOC requesting punitive damages for pay discrimination for which the organization has already admitted.

With the renewed focus on compensation and the significant increase in frontline investigators, all employers should monitor their compensation structure regularly to uncover and remedy any statistically significant pay disparity among women and minorities. As painful as it is to conduct regular compensation analysis and remedy any discrimination, it will peril in comparison to receiving a consent decree or conciliation agreement that requires 2 years of back pay and a press release outlining the alleged discrimination.

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