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In the selfevaluation guidelines, the OFCCP outlines an analysis method by which contractors may comply, centering around five “standards”:
1. The selfevaluation must be based on similarly situated employee groupings” (SSEGs);
2. The employer must make a reasonable attempt to produce SSEGs that are large enough for meaningful statistical analysis;
3. On an annual basis, the employer must perform some type of statistical analysis of the compensation system;
4. The employer must investigate any statistically significant disparities in compensation (defined as two or more standard deviations) and provide appropriate remedies;
5. The employer must contemporaneously create and retain the required data and make it available to the OFCCP during a compliance review.
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