Special Topics Annual Report: The State of Federal Sector Age Discrimination

 

Office of Federal Operations ● Fiscal Year 2017

Contents

PREFACE

Laws

Goal

EXECUTIVE SUMMARY

INTRODUCTION

Overview

Scope

THE ADEA: IMPORTANCE AND IMPACT

A COMPARATIVE ANALYSIS OF THE 40 AND OVER WORKFORCE: THE FEDERAL SECTOR VS. THE CIVILIAN LABOR FORCE

METHODOLOGY

While the Federal Sector Outperforms the CLF in Representation, Pay Disparities Persist Among Federal Employees 40 and Over Despite Educational Attainment

Pay Disparities Persist in the Federal Sector, Even When Education Level is Comparable

AGE DISCRIMINATION COMPLAINTS IN THE FEDERAL SECTOR VS. THE PRIVATE SECTOR

METHODOLOGY

Age Complaints and Settlements are Higher in the Federal Sector, Though the Private Sector Experiences More Findings

PREDICTING FEDERAL SECTOR AGE-BASED COMPLAINTS

METHODOLOGY

Perceptions of Fairness May Be Associated with Age Complaints. Agency Reporting Structure Is a Consistent Predictor

Preliminary Analysis

Predicting Agency Level Age Complaints

Summary

CONCLUSIONS

In General, the Federal Sector Outperforms the Private Sector and the CLF in EEO for Older Workers

Despite Favorable EEO Performance, there is Much Room for Improvement in the Federal Sector

EEOC Regulations, Management Directive 110 and Management Directive 715 May Influence Federal Sector EEO Performance for Older Workers

APPENDIX 1. Federal Employee Viewpoint Survey Fair Workplace Measures

APPENDIX 2. T-Test Results: Age Complaints by FEVS Scores

APPENDIX 3. Predicting Age Complaints Among FEVS Agencies: Poisson Regression Results

APPENDIX 4. Predicting Age Complaints Among Form 462 Agencies: Poisson Regression Results

APPENDIX 5. Gender and Education: Federal Sector vs. CLF, FY2017

REFERENCES

List of Tables

Table 1. Top 3 Issues Alleged in the Federal vs. Private Sector, FY2017

Table 2. Descriptive Statistics for FEVS Agencies’ Analysis

Table 3. Mean Comparison of FEVS Scores for Agency Age Complaint Rates Above the Sample Mean and Agencies Below the Sample Mean (Equal Variances Not Assumed), FY2017

Table 4. Descriptive Statistics for Poisson Regression Analysis: Form 462 Agencies

List of Figures

Figure 1. Federal Sector Rate of Employment for Employees 40 Years and Older, FY2017

Figure 2. Federal Pay Across Age Groups, FY2017

Figure 3. Sex Distribution for Employees 40 and Over: Federal vs. Civilian Labor Force, FY2017

Figure 4. Race and National Origin Distributions for Employees 40 and Over: Federal Sector vs. CLF, FY2017

Figure 5. Mean Earnings by Sex for Employees 40 and Over, Federal Sector, FY2017

Figure 6. Mean Earnings by Race and National Origin for Employees 40 and Over, Federal Sector, FY2017

Figure 7. Percentage of Employees 40 and Over with a Bachelor’s Degree or Higher, Federal Sector, FY2017

Figure 8. Percentage of Employees 40 and Over with a Bachelor’s Degree or Higher by Race and National Origin, Federal, FY2017

Figure 9. Gender Differences in Mean Earnings Among Employees 40 and Over with a Bachelor’s Degrees or Higher, Federal, FY2017

Figure 10. Differences in Mean Earnings by Race and National Origin among Employees 40 and Over with a Bachelor’s Degrees or Higher, Federal, FY2017

Figure 11. Federal vs. Private Sector Age Complaints, FY2013-FY2017

Figure 12. Federal vs. Private Sector Age-Based Settlements, 2013-2017

Figure 13. Federal vs. Private Sector Age-Based Findings, FY2013 - FY2017

PREFACE

Laws

The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability, or genetic information.  It is also illegal to discriminate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit.  The EEOC’s responsibilities extend not only to private employers, but also to agencies in the federal government.  The federal anti-discrimination laws applicable to federal government employment are as follows:

The Equal Pay Act of 1963 (EPA), as amended, which prohibits employment discrimination on the basis of gender in compensation for work requiring substantially equal skill, effort, and responsibility that is performed under similar conditions;

Section 717 of Title VII of the Civil Rights Act of 1964 (Title VII), as amended, which prohibits employment discrimination based on race, color, religion, sex (including gender identity and sexual orientation), and national origin;

Section 15 of the Age Discrimination in Employment Act of 1967 (ADEA), as amended, which prohibits employment discrimination on the basis of age (40 years and older);

Section 501 of the Rehabilitation Act of 1973 (Rehabilitation Act), as amended, which prohibits employment discrimination against federal employees and applicants with disabilities and requires that reasonable accommodations be provided ( Act applies the same standards as the Americans with Disabilities Act, which prohibits discrimination based on disability by private and state or local government employers);

The Pregnancy Discrimination Act (1978 Amendment to Title VII of Civil Rights Act), which prohibits treating a woman unfavorably because of pregnancy, childbirth, or a medical condition related to pregnancy or childbirth; and

The Genetic Information Nondiscrimination Act of 2008 (GINA), which prohibits employment discrimination based on genetic information, including family medical history.

Goal

This Special Topics Report profiles federal sector employees 40 years and over for the fiscal year (FY) 2017.  Specifically, this report:

1.     Compares federal sector workforce distributions for employees 40 and over to the civilian labor force (CLF);

2.     Compares charges of age discrimination in the federal sector to that of the private sector;

3.     Analyzes organizational and socio-cultural factors that may contribute to federal sector age complaints;

4.     Discusses the impact of MD-110 and MD-715 on federal sector diversity and EEO complaints. 

The EEOC intends for this report to serve as a resource for proactive prevention of age discrimination and other inequalities among employees 40 and over by increasing awareness of emerging problem areas.  This report begins by providing a brief history of the ADEA and its impact on the U.S. workforce.  A comparative analysis between federal and private sectors on age-based complaints, workforce distributions, and diversity for people 40 and over is then reported.  Finally, organizational factors and agency FEVS data are used to predict age discrimination complaints.  This report concludes by explaining the impact of MD-110 and MD-715 on older federal sector workers.

EXECUTIVE SUMMARY

This report profiles the federal sector workforce, 40 and over, while providing a comparative analysis between the federal sector and the private sector in diversity and representation and rates of age discrimination complaints, settlements, and findings. Organizational and socio-cultural factors are used to predict age discrimination complaints in the federal sector as well.  Below are highlights from this report:

While the Federal Sector Outperforms the Civilian Labor Force[1] (CLF) in Representation, We Found that Pay Disparities Persist Among Federal Employees 40 and Over

• Employees 40 and over enjoyed greater representation in the federal sector than in the CLF.
• There was a tendency for federal employees to earn more as they age.
• The employment gap between women and men 40 and over was larger than it was in the CLF.
• Generally, the 40 and over federal sector workforce was more diverse than the CLF, with most race and national origin groups participating in the federal sector at rates equal to or greater than the CLF.
• There were pay gaps among the race and national origin groups in the federal sector, with Asians and Whites earning more than other groups. This pattern persisted among college degree holders.

Age Complaints and Settlements are Higher in the Federal Sector, Though the Private Sector Experiences More Findings

• Between 2013 and 2017, inclusively, age complaints in the federal sector have consistently ranged between 8% to 9% higher in volume than in the private sector.
• Age was the second leading basis alleged in complaints in FY2017, with non-sexual harassment, disciplinary action, and promotion-selection being the top issues alleged in age-based complaints.
• While the federal sector reported more complaints and settlements, the private sector reported more findings.  The private sector had a finding rate for age complaints between 2.5% and 3% between 2013 and 2017. Federal sector findings have remained under 1% during this same period.

Perceptions of Fairness May Be Associated with Age Complaints and Agency Reporting Structure Is a Consistent Predictor

• General job satisfaction, confidence in agency leadership, and perceptions of workplace inclusion, as indicated by Federal Employee Viewpoint Survey results, are associated with fewer age complaints among federal agencies.
• Having an EEO director report directly to the agency head is associated with a 73% decreased likelihood of having an age complaint among agencies surveyed by OPM through the Federal Employee Viewpoint Survey and a 24% decreased likelihood of having an age complaint among agencies that are required to submit Form 462 Reports to EEOC.

INTRODUCTION

Overview

The federal government is the largest employer in the United States, with close to 3 million employees.  With over 70% of its permanent general schedule (GS) workforce being at or above the age of 40 and the average age being 47.5 years (Office of Personnel Management, 2019), it becomes important to understand some of the challenges facing older federal workers. While significant advancements have been made to afford protections to this population, age discrimination remains a basis in over 30% of all federal sector complaints and is the second leading basis in FY2017 behind retaliation—with 4,980 age complaints alleged (Equal Employment Opportunity Commission, 2019). Further, an analysis of federal sector workforce statistics suggests that, while older employees earn more than the government-wide average, gender and race/ethnicity inequalities persist within this demographic. This report highlights some of the successes and challenges in providing equal employment opportunities to this population of workers.

The Age Discrimination in Employment Act (ADEA) of 1967 forbids age discrimination against people who are age 40 or older. The law prohibits discrimination in any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, benefits, and any other term or condition of employment.  Further, any employment policy or practice that applies to everyone, regardless of age, can be considered illegal if it has a negative impact on applicants or employees age 40 or older and is not based on a reasonable factor other than age (Equal Employment Opportunity Commission, 2019).

The ADEA is an integral part of equal employment opportunity law.  Laws such as the Equal Pay Act of 1963 and the Civil Rights Act of 1964, when paired with the ADEA, transformed the workplace by requiring that employers maintain an environment of equality and fairness through continual opportunity, improvement and growth. Victoria A. Lipnic, the former Acting Chair for the U.S. Equal Employment Opportunity Commission (EEOC), produced the report “The State of Age Discrimination and Older Workers in the U.S. 50 Years After the Age Discrimination in Employment Act (ADEA)” in June of 2018. This report discusses the impact of ADEA on the workplace since its enactment and the current state of age discrimination in the private sector. Acting Chair Lipnic reported that, in the private sector, the older population of workers are more diverse, educated, healthier, and are working and living longer than in previous periods in U.S. history.  Unfortunately, this increased longevity and vitality also means that older workers, of all races, genders, and ethnicities, are at a greater risk of experiencing age discrimination.

The  report describes the federal sector workforce based primarily on age, while providing comparative analyses of key EEO indicators across time and between the federal and non-federal sectors.  Sex, race, and ethnic disparities in representation and pay among this population are also noted.  A prediction model is used to determine what socio-structural factors predict agency age discrimination complaint rates. The information presented can help Congress, stakeholder agencies, and EEOC leadership identify emerging issues in age discrimination and provide benchmarks for measuring federal sector performance.  EEO professionals interested in proactive prevention may also find value in this report.

The data presented in this report was drawn from the following sources:

• Management Directive 715 Federal Agency Annual Equal Employment Opportunity Program Status Reports (MD-715), a database of workforce statistics from 229 federal agencies and subcomponents filed with the EEOC at the end of FY 2017.
• Federal Equal Employment Opportunity Statistical Report of Discrimination Complaints Reports (Form 462), a database of complaint statistics from 268 federal agencies and subcomponents filed with the EEOC at the end of FY 2017.
• The United States Census Bureau’s Current Population Survey Table Creator, a tool for generating data tables based on the monthly survey conducted by the U.S. Census Bureau located at https://www.census.gov/cps/data/cpstablecreator.html.
• The Office of Personnel Management’s FedScope Data Cubes, December 2017, a data warehouse managed by the Office of Personnel Management that stores human resources, payroll, and training data from Executive Branch agencies in the federal sector https://www.fedscope.opm.gov/ibmcognos/bi/v1/disp?b_action=powerPlayService&m_encoding=UTF-8&BZ=1AAABnPQ_DIp42oVOTW_CQBT8M~uwPdS.
• EEOC’s Private Sector Enforcement and Litigation Statistics, a summary of all discrimination charges in the private sector, created by the EEOC and located at www.eeoc.gov.
• The FY2017 Federal Employee Viewpoint Survey Data, an annual survey of federal employees measuring their perceptions of successful organizational conditions at their workplace.

Scope

The goal of this report is to profile the federal sector workforce, age 40 and over, while providing benchmarks against which individual agencies and the federal sector can gauge their EEO performance.  All analyses are done at the agency or sector level. Analyses at the employee level are outside of the scope of this report.  As such, data is reported in the following manner:     

All data are reported in aggregate form; 

5-year trends are presented where appropriate;

Federal sector employment data is based on employees comprising the GS-pay scale workforce at those agencies required to report to OPM—i.e., Executive Agencies;

Non-federal sector data reported is based on the 2017 CLF statistics;

 

 

 

 THE ADEA: IMPORTANCE AND IMPACT

 

The workforce today looks very different from previous periods in U.S. history.  The modern workforce is older and more age-diverse.  It has been projected that, by the year 2025, almost half of the U.S. population will be over the age of 40 (U.S. Census, 2018).  Further, the typical retirement age is increasing due to workers having healthier lifestyles and longer life expectancies and Social Security eligibility (for non-reduced benefits) starting at later ages now than in previous years.  Pension plans are also declining as retirement responsibilities continue to shift from the employer to the employee (Maestas, 2010).  These data suggest that Americans are expected to remain active in the labor force for much longer than their predecessors.  As such, there is an increased importance of the Age Discrimination in Employment Act (ADEA) as a way to ensure that employment opportunities remain commensurate with these expectations.

The challenges of ensuring an equal opportunity workplace within an aging population is compounded when we consider the changing labor force with respect to race, sex, and ethnicity. It has been projected that, by the year 2024, women 55 and over will comprise a quarter of the labor force (Department of Labor, 2008) and a third of the labor force will be made up of Black, Asian, non-White Hispanics, and other non-White workers (Tossi, 2018).  Kunze, Boehm, and Bruch (2011) theorized on what to expect when researching age discrimination in the context of diversity within the U.S. The authors presented a theory that, while age discrimination increases with age diversification, it becomes less salient in the presence of other more socially significant identities.  Due to historical, social, and political processes in the United States, age may not be as important when factors such as sex and race are present, allowing such discriminations to persist even within age groups.  While individuals at a workplace carry multiple group memberships and discriminations are based on allegiance to such memberships, these allegiances are prioritized based on forces that shape our perceptions of the relative value of each membership. In an American socio-political context, race and sex allegiances may be stronger than age allegiances and, as such, members of marginalized race and sex groups will likely face discrimination even from those of a common age group.

While current anti-discrimination laws have proved valuable for reducing some of the impact of age discrimination, it is important that we remain aware of any emerging issues affecting this population. The results that follow are valuable as an examination of age discrimination in the federal sector. In conjunction with former Acting Chair Lipnic’s report, this report will be valuable to those interested in designing policies that promote equal employment opportunities amongst an aging population.

A COMPARATIVE ANALYSIS OF THE 40 AND OVER WORKFORCE: THE FEDERAL SECTOR VS. THE CIVILIAN LABOR FORCE

METHODOLOGY

This section compares the federal sector 40 and over workforce to the civilian labor force 40 and over across a variety of statistical measures related to diversity.  Comparisons between the federal sector and CLF data were drawn using two data sources. Federal sector data was compiled using OPM’s FedScope Employment Cubes.[2]  This data system is created using OPM’s Enterprise Human Resources Integration (EHRI) data warehouse, a government-wide shared platform in which human resources data for all executive agencies are stored (OPM, 2019).  Updated quarterly, this warehouse is the primary source of federal sector workforce data.  The “Employment Cube” and the “Diversity Cube” for December 2017 were utilized to generate all federal sector data tables.  Each cube was filtered with “Age 40 and over” as a custom subset.  Race, sex, national origin, educational attainment, and earnings were extracted, and contingency tables developed.

The civilian labor force statistics were compiled using the U.S. Census Current Population Survey CPS Table Creator.[3]  The CPS data is collected annually by the U.S. Census Bureau and the U.S. Bureau of Labor Statistics and is the primary source of labor force statistics for the population of the United States.  The CPS is administered using a probability sample of about 60,000 households from across all 50 states and the District of Columbia. Household data is weighted to allow for generalizations to the entire U.S. population (U.S. Census Bureau, 2019). For our comparisons, only 2017 data was used, with the population Civilian Labor Force[4] measure and “Age 40 to 80+” used as the primary filters. Afterwards, race, sex, national origin, and education attainment were selected, and contingency tables were developed.       

The results of our comparison of federal sector and civilian labor force workforce distributions follows.

While the Federal Sector Outperforms the CLF in Representation, Pay Disparities Persist Among Federal Employees 40 and Over Despite Educational Attainment[5]

Overall, employees 40 and over enjoy greater representation in the federal sector than in the civilian labor force (Figure 1). Persons 40 and over comprise 54% of the civilian labor force, compared to 72% in the federal sector.  Further, federal employees in this protected age group earned, on average, $87,886 a year and there was a tendency for federal employees in this category to earn more as they get older, with earnings peaking at the 65 and older age group. 

Figure 1. Federal Sector Rate of Employment for Employees 40 Years and Older, FY2017

Figure 2. Federal Pay Across Age Groups, FY2017

With respect to representation, men in this protected age group participated in the federal sector more than their female counterparts (Figure 3).  Men 40 and over make up 57% of the federal sector workforce, compared with 45% in the CLF, while women 40 and over only make up 43% of the federal sector workforce, compared to 41% in the CLF.[6] While both groups participate at a higher rate in the federal sector than in the CLF, 40 and over men in the federal sector participate at a rate of 12% higher than the CLF, compared to only 2% increased participation among women.

/>

Figure 3. Sex Distribution for Employees 40 and Over: Federal vs. Civilian Labor Force, FY2017[7]

As with gender representation, the federal sector is generally on par with, or ahead of, the CLF with respect to race and national origin for employees 40 and over (Figure 4).  Hispanics, Native Hawaiian or Other Pacific Islanders, Asians, and individuals reporting more than one race are all equally represented in the federal sector and the CLF.  African Americans are represented 8% more in the federal sector than in the CLF, while Whites are underrepresented by 5%. American Indian or Alaska Natives are about 1% higher in the federal sector than in the CLF. Overall, the federal government has maintained comparable representation to the CLF.

Figure 4. Race and National Origin Distributions for Employees 40 and Over: Federal Sector vs. CLF, FY2017

With respect to gender, men, on average, earn more than women in the federal sector (Figure 5).  In the federal sector, men 40 and over earn about $7,414 more per year than women, with men earning, on average, $91,250 and women earning $83,836.    

Figure 5. Mean Earnings by Sex for Employees 40 and Over, Federal Sector, FY2017

An analysis of earnings by race and ethnicity reveals pay gaps among these groups as well (Figure 6).  In the federal sector, Asians in the protected age categories, on average, earn more than other groups.  This is followed by Whites, who are the second highest earners, followed by more than one race, Hispanic/Latinos, African Americans, Native Hawaiian or Other Pacific Islanders, and American Indian or Alaska Natives, in that order. 

Figure 6. Mean Earnings by Race and National Origin for Employees 40 and Over, Federal Sector, FY2017

Pay Disparities Persist in the Federal Sector, Even When Education Level is Comparable

Federal sector men and women 40 and over are close to equal in their rates of bachelor’s degree or higher holders within each gender group.  In the federal sector 53% of males and 51% of females 40 and over have bachelor’s degrees (Figure 7). In looking at race and national origin, a greater proportion of Asians 40 and over hold a bachelor’s degree or higher than any other group, with 69% of Asian federal employees holding a degree, followed by White employees at 55%, more than one race at 53%, and both Black and Hispanic employees at 42% each. American Indian or Alaska Natives and Native Hawaiian or Other Pacific Islanders held bachelor’s degrees at 33% and 32% respectively (Figure 8, Appendix 5). 

Figure 7. Percentage of Employees 40 and Over with a Bachelor’s Degree or Higher, Federal Sector, FY2017

Figure 8. Percentage of Employees 40 and Over with a Bachelor’s Degree or Higher by Race and National Origin, Federal, FY2017

Regarding gender pay among employees with a bachelor’s degree or higher, the pay gap between men and women 40 and over exists (Figure 9).

Figure 9. Gender Differences in Mean Earnings Among Employees 40 and Over with a Bachelor’s Degrees or Higher, Federal, FY2017

With regards to race and national origin, pay differences persist among groups holding a bachelor’s degree or higher in the protected age group (Figure 10). Asian Americans 40 and over with bachelor’s degrees or higher, on average, earn more than all other groups, followed closely by Whites, Hispanics, and more than one race. Blacks, Native Hawaiian or Other Pacific Islanders, and American Indian or Alaska Natives, respectively, earn less than all other groups.

Figure 10. Differences in Mean Earnings by Race and National Origin among Employees 40 and Over with a Bachelor’s Degrees or Higher, Federal, FY2017

AGE DISCRIMINATION COMPLAINTS IN THE FEDERAL SECTOR VS. THE PRIVATE SECTOR

METHODOLOGY

This section of the report compares the rates of age discrimination complaints, settlements, and findings between the federal and private sectors while providing trends data where appropriate.  The top issues alleged for age complaints are also provided. Data used for the analysis of federal sector and private sector age discrimination complaints was derived from two sources.  Federal sector complaint data was compiled from the Annual Federal Equal Employment Opportunity Statistical Report on Discrimination Complaints (EEOC Form 462). This data is collected annually by the Office of Federal Operations and consists of data on all pre-complaint, formal complaint, and complaint closure activities for all Executive, civilian, military, judicial, and other federal agencies and sub-agencies required to file a Form 462 as identified in 29 C.F.R. 1614.103.  For FY2017, the total number of agencies submitting Form 462 to the EEOC was 268.  

Private sector complaint data was compiled from the Enforcement and Litigation Statistics found at www.eeoc.gov.  These data are compiled annually by EEOC’s Office of Enterprise Data and Analytics and posted publicly on the website in tabular form. The data found on this site represents all discrimination charges filed with the EEOC, including bases, issues, hearings, and closures.  Data from both sources were compiled into contingency tables and analyzed accordingly. The results of these analyses follow.

Age Complaints and Settlements are Higher in the Federal Sector, Though the Private Sector Experiences More Findings

The rate of federal sector age-based EEO complaints remained fairly consistent between FY2013 and FY2017 (Figure 11).  Age discrimination was alleged in 31% of all federal sector complaints, 8% to 9% higher than in the private sector. Non-sexual harassment was a leading issue alleged in age-based complaints, ranking first in the federal sector with 2,094 complaints and third in the private sector with 3,909 complaints (Table 1). 

Figure 11. Federal vs. Private Sector Age Complaints, FY2013-FY2017

Table 1. Top 3 Issues Alleged in the Federal vs. Private Sector, FY2017

The rates of federal sector settlements for age-based complaints have also been consistent between FY2013 and FY2017, with the federal sector settling between 20% and 23% of all age-based complaints, 13% and 15% more than those settled in the private sector (Figure 12).  Interestingly, while the federal sector has consistently settled more age-based complaints over the past five years, the private sector has consistently had more findings. The rate of age-based complaint findings has been 2.5% to 3% higher in the private sector than in the federal sector.  Federal sector age-based findings have remained less than 1% (Figure 13).

Figure 12. Federal vs. Private Sector Age-Based Settlements, 2013-2017

Figure 13. Federal vs. Private Sector Age-Based Findings, FY2013 - FY2017

PREDICTING FEDERAL SECTOR AGE-BASED COMPLAINTS

METHODOLOGY

After observing the prevalence of age complaints in the federal sector, we sought to determine if the organizational and social environments potentially contributed to this phenomenon. As such, we merged Form 462 complaint data with data from OPM’s Federal Employee Viewpoint Survey (FEVS) to investigate the impact of agency socio-structural characteristics on age complaints. 

The Office of Personnel Management FEVS measures employees’ perceptions of their work environment, including their experiences with their agencies, supervisors, senior leadership, and colleagues (Office of Personnel Management, 2017). Factors such as perceived fairness, diversity, and inclusion; satisfaction with job duties and responsibilities; general organizational satisfaction; and select demographics including race, sex, pay grade, education, and supervisory status are measured and compiled into summary scores. During FY2017, more than 485,000 federal employees across 80 agencies participated for a participation rate of 45.5%. The FEVS results are used to access the pulse of the federal workforce and are often used by agency leadership to identify pain points within the organization’s social climate.

Because Form 462 is aggregate data reported only at the agency level, FEVS data was analyzed at this level as well. Data for the 75 agencies found in FEVS were merged with their Form 462 agency-level responses.  Relationships between the agency characteristics, as identified in Form 462, were analyzed alongside agency-level FEVS scores to predict agency-level age complaints. Agency organizational characteristics used to predict age complaints included:

• Agency size, as indicated by the total number of permanent and temporary employees at the agency;
• The total number of formal complaints filed at the agency;
• The number of EEO staff employed at the agency, as indicated by the total number of employees working as EEO counselors, investigators, or counselors/investigators;
• The agency’s reporting structure, as indicated by whether or not the agency’s EEO director reports directly to the agency’s head, as required by Management Directive 110.

Indicators of the social climate were all derived from FEVS data and are as follows:

• Agency-level global satisfaction index (GSI)—a four-item index designed to measure employees’ perceptions that their organization is a good place to work and their general satisfaction with their job, pay, and organization, as a whole (See Appendix 1).  GSI is calculated by averaging the unrounded percent positive of each of the four items (OPM 2016).
• Human Capital Assessment and Accountability Framework Index (HCAAFI)—an index comprised of four sub-scales designed to measure the employee’s perceived competency of agency leadership, including the leadership’s knowledge; whether the leadership fosters a results-oriented culture; ability to manage agency talent; and overall job satisfaction (Appendix 1). HCAAFI is calculated by averaging the unrounded percent positive of the items that make up the index (Office of Personnel Management, 2016).
• New Inclusion Quotient (NewIQ), a 20-item index measured across five sub-scales that assesses employees’ perceptions of five habits of inclusion -- fairness, openness, cooperativeness, supportiveness, and empowerment (See Appendix A).  The NewIQ is calculated by averaging the unrounded percent positive of each of the items in the sub-index. Averaging the five unrounded sub-index scores creates the overall NewIQ score (Office of Personnel Management, 2016).

Perceptions of Fairness May Be Associated with Age Complaints. Agency Reporting Structure Is a Consistent Predictor

Upon merging Form 462 and FEVS data, our final sample consisted of 75 agencies.  Among these agencies, the average number of employees was 24,486, with an average complaint rate of 132 complaints (Table 2). The average number of age complaints among these agencies was 39 and the average number of EEO staff per agency was 67.  The average GSI score was 68.3, the average HCAAFI score was 69.3, and the average NewIQ score was 64.8. Results indicated that 74.7% of the sample had an EEO director that reported directly to the agency head.

Table 2. Descriptive Statistics for FEVS Agencies’ Analysis[8]

Preliminary Analysis

For our preliminary analysis, we investigated whether age complaint rates were associated with FEVS scores.  Age complaint rates were calculated by taking the total number of age complaints filed at the agency and dividing by the total number of complaints filed at the agency.  This proportion was then converted to a percent.  For our sample of 80 FEVS agencies, the average age complaint rate was 27%. Agencies with an age complaint rate above this average were dummy coded “1” while agencies with an age complaint rates below this average were dummy-coded “0”.  A t-test[9] was used to test the mean difference in agency HCAAFI score, the overall GSI score, and the NewIQ score. We expected that agencies with rates of complaints above the mean would perform poorer on each of these socio-cultural indicators. 

T-tests comparing the average FEVS scores between agencies above the mean age complaint rate and below the mean age complaint rate revealed this very result (Table 3).  Agencies with age complaint rates above the mean reported 2.4 points (P >. 05) higher on their average HCAAFI scores, 3.1 points (P >. 05) higher on their average GIS scores, and 2.2 points (P >. 05) higher on their NewIQ scores. While these results are not statistically significant, these relationships are true for 72 of the 80 agencies comprising the FEVS dataset.

Table 3. Mean Comparison of FEVS Scores for Agency Age Complaint Rates Above the Sample Mean and Agencies Below the Sample Mean (Equal Variances Not Assumed), FY2017

Predicting Agency-Level Age Complaints

For our predictive model, we sought to identify organizational factors that contribute to agency age complaints using our FEVS sample. With the number of age complaints as the outcome variable, we entered total workforce, total complaints, agency reporting structure, number of EEO professionals at the agency, and the agency’s NewIQ score into a Poisson regression model to predict age complaints.

Poisson regression was used given that, as age complaints  are a count variable, it allows us to predict the chances that an age complaint will occur via the “incident rate ratio” (IRR).  The incident rate ratio is a derivative of the regression coefficient and indicates the chance that a complaint will occur when each predictor in the Poisson regression model is entered into the equation.  Every IRR unit above “1” represents a percent increase per unit increase on the predictor variable, while every unit below “1” represents a percent decrease in a complaint occurring per unit increase in the predictor variable. 

The NewIQ was selected as our only FEVS predictor, due to the NewIQ being the more comprehensive measure of an agency’s EEO climate.  For our regression analysis, reporting structure was coded “0” if the agency’s EEO director did not report to the agency head and “1” if the EEO director did report to the agency head.  All other variables were numeric.

With total workforce, total complaints, number of EEO staff, and NewIQ score all held constant, reporting structure was a substantively and statistically significant predictor of age complaints at the agency. Agencies whose EEO director reported directly to the agency head had a 73% decreased likelihood of reporting an age complaint compared to agencies whose EEO director did not report directly to the agency head (IRR = .267; P < .05). Having an EEO director report directly to the agency head reduces the chances of having an age complaint at the agency, even when agency size, total complaints, number of EEO staff, and NewIQ score are the same. The strength of this relationship is impressive. Appendix 2 provides a full display of the regression results. After discovering the strength of the relationship between reporting structure and age complaints, we decided to investigate whether this relationship existed among our larger population of Form 462 agencies.  As in the previous predictive model, total workforce, total complaints, reporting structure, and number of EEO staff were used as predictors.  NewIQ was dropped from the analysis due to the variable not being available for the majority of the 268 agencies reporting Form 462.

Table 4 displays the characteristics of the Form 462 agencies with respect to our targeted variables. Across the 263 agencies used in the final analysis, the average agency size was 10,603 employees and the average number of complaints were 57.8.  The average number of age complaints was 17.8 and the average number of EEO staff at the agency was 24.7.  Results indicated that 58.2% of the agencies had EEO directors that reported directly to the agency head, while 41.8% of agencies did not.

Table 4. Descriptive Statistics for Poisson Regression Analysis: Form 462 Agencies[10]

For our regression analysis, reporting structure was coded “0” if the agency’s EEO director did not report directly to the agency head, and “1” if the EEO director did report directly to the agency head.  All other variables were numeric.

As expected, reporting structure was negatively associated with the number of age complaints. Agencies with an EEO director reporting directly to the agency head were 24% less likely to report an age complaint than agencies without their EEO director reporting directly to the agency head (IRR = -.764; P < .05).  This result is both substantively and statistically significant.  When total workforce, total complaints, and number of EEO staff is the same, agencies with a director reporting directly to the agency head are less likely to experience an age complaint. Appendix 3 displays the full regression results.

Summary

The results above suggest that, when all else is equal, the agency reporting structure is singly important in predicting age complaints among both FEVS and Form 462 agencies.  While agency size, and the number of EEO staff were statistically significant in both samples, neither approached the predictive power of having an EEO director report directly to the agency head.  These results demonstrate the importance of this Management Directive 110 requirement in reducing age discrimination among federal agencies.

CONCLUSIONS

The data presented here suggests that older federal employees enjoy greater representation and diversity than what has been observed in the CLF.  The federal sector outperformed the private sector and the CLF in almost every measure of EEO presented in this report.  However, despite a strong relative performance, the race, sex, and national origin inequalities persist in the federal sector among the 40 and older cohort.     

In General, the Federal Sector Outperforms the Private Sector and the CLF in EEO for Older Workers

Relatively, the federal sector has done an impressive job of delivering EEO to older employees when compared to the private sector and the CLF.  Federal employees 40 and over enjoy greater representation and more diversity than their non-federal sector counterparts.  Further, the data indicating that federal employees earn more as they get older suggests that the federal sector is successful in discouraging pay penalties as we age.  With respect to sex, parity between men and women remains when it comes to pay among workers 40 and over, with men on average earning more than women.  While age complaints are indeed higher in the federal sector, data demonstrating that federal sector settlements are also higher while findings are lower suggest that the federal sector is more effective at resolving age discrimination complaints. The discussion that follows attempts to explain some of the patterns observed. 

Despite Favorable EEO Performance, There is Much Room for Improvement in the Federal Sector

Despite the relative success of the federal sector with regard to EEO delivery to employees 40 and over, the $7,414 pay difference between men and women should not be ignored.  Likewise, the fact that pay differences prevail between race and national origin within protected age groups despite having a college degree must be addressed.  While the workforce distributions in the CLF and public sectors mirror with respect to race and national origin, the persistence of inequality despite the high level of oversight suggests that the EEOC should continue to develop policies and guidance that promote EEO. 

EEOC Regulations, Management Directive 110 and Management Directive 715 May Influence Federal Sector EEO Performance for Older Workers

 

Considering the private sector has no complimentary guidance for managing EEO activity, it is our position that the reason that the federal sector outperforms the private sector in EEO is, at least in part, due to the presence of enhanced oversight by EEOC through these management directives. MD-110 provides federal agencies with guidelines and requirements for processing their EEO complaints while MD-715 provides agencies with program requirements for maintaining a successful EEO program and fair workplace. It is the enforcement of these directives that has encouraged agencies to comply and promote a discrimination-free environment.

Research provided by Lee and Smith (2019) may help explain why the federal sector outperforms the private sector in EEO.  These authors reviewed over 22 types of EEO strategies and identified six strategies that can potentially contribute to a fair and equitable workplace:

• Authorizing workers’ complaints by allowing third parties to advocate on the part of disadvantaged populations and employees;
• Creating enhanced penalties for engaging in discrimination;
• Mandating that employers disclose information to workers about their rights;
• Having strong anti-retaliation laws;
• Expanding liability by placing the burden of proof on the employer;
• Making reporting of employer discrimination data to the public and governing bodies mandatory.

While these recommendations were largely designed to address pay disparities and intended for grass roots advocacy, their recommendations have implications for all forms of workplace inequality.  Further, a review of Management Directive 110 and Management Directive 715 aligns with Lee and Smith’s recommendations. 

Lee and Smith suggested that advocacy organizations should attempt to authorize worker complaints by eliminating barriers to “naming, blaming, and claiming” discrimination complaints. Inequality becomes pervasive when it is not challenged by those most impacted by it.  However, if the proper policies, practices, and procedures are not in place, disadvantaged groups may be discouraged from voicing injustice.  Creating a culture of inclusion is necessary for promoting diversity in the workplace. Organizations that are aware of how broader social, historical, and political inequalities reproduce themselves in the workplace are more likely to be successful in promoting equity (Wong 2019).  The EEOC, through enforcement of its regulations and Management Directive 110, encourages employees to voice their concerns about discrimination  by requiring all agencies to establish an EEO Complaint Program, assign an EEO director to this program, and require that this program exists independent of the agency’s personnel functions. The Commission requires agency EEO offices to operate as independent entities, ensuring that employees feel confident that filing a complaint will not impact their standing at the agency. Further, while an EEO complaint begins at the agency, 29 C.F.R. 1614 allows employees to appeal agency decisions to the EEOC or to take their complaint to federal court, reinforcing fairness in the resolution of a complaint.   

Lee and Smith also recommend that advocacy groups require employers to report data on discrimination complaints and findings to the public and governing agencies as a way of promoting employer accountability. Once again, this is a requirement in MD-110.  According to MD-110, agencies must report discrimination complaints to the EEOC annually, including timeliness in complaint processing and ADR utilization.  Agencies must post their No FEAR Act data on discrimination complaints and outcomes on their public websites, and an annual report on workforce distributions and complaint activity must be provided to Congress, EEOC, and the public. Agencies failing to report such data to the Commission are subject to sanctions, as determined by Congress.  Encouraging agencies to remain transparent, which may improve the culture of EEO, increases agency accountability.

The authors further argue that anti-retaliation laws are essential to encouraging potential victims of discrimination to challenge inequality.  As such, the rise of legislation such as the No FEAR Act of 2003 broadened EEOC’s ability to enforce the anti-retaliation protections already afforded in the Civil Rights Act of 1964.  With the development of the No FEAR Act, the EEOC required agencies to provide mandatory No FEAR Act training to all federal employees biannually, ensuring that employees are knowledgeable of their rights to challenge mistreatment without fear of retaliation.

The effective use of ADR in the federal sector may help explain why age complaint settlements were higher and findings were lower as compared to the private sector.  29 C.F.R. Part 1614.102(b)(2) requires that agencies establish alternative dispute resolution programs and that this option be made available to employees when the informal complaint is submitted; further, employees may participate in ADR at any time during the complaint process. An analysis of Form 462 data for FY2017 reveals that agencies offer ADR to employees at a rate of 88%, and it is accepted 55% of the time, with 64% of ADR acceptances resulting in a resolution.

Finally, our results showed that the primary predictor of age complaints both in our Form 462 agencies and our FEVS agencies was having an EEO director report to the agency head.  This is a requirement of 29 C.F.R. 1614.102(b)(4) and MD-110 that may also contribute to more successful EEO at the agency.  Having an EEO director report directly to the agency head was associated with a 73% decreased likelihood of having an age complaint among FEVS agencies and a 24% decreased likelihood of having an age complaint among Form 462 agencies.

In summary, the effective oversight of the federal sector may help explain the difference in EEO delivery between it and the private sector for employees 40 and over. Additional work remains for this population, as pay disparities persist within gender, race, and national origin groups.  Nevertheless, the EEOC has had success in the federal sector regarding older workers.  The federal sector has greater representation than the national CLF while outperforming the private sector in complaint settlements.  Federal employees, on average, earn more as they get older, suggesting that labor is not undervalued with age.  Finally, the finding that agencies with a compliant reporting structure, on average, report fewer age complaints than non-compliant agencies points to a compliant reporting structure as a best practice for protecting older workers.  The private sector may benefit from looking to the federal government as a model EEO employer.

 

APPENDIX 1. Federal Employee Viewpoint Survey Fair Workplace Measures

APPENDIX 2. T-Test Results: Age Complaints by FEVS Scores

The TTEST Procedure

 

Variable: overalleei (overalleei)

 

 

 

 

 

The TTEST Procedure

 

Variable: gsi (gsi)

 

 

 

 

 

The TTEST Procedure

 

Variable: hcaafjsi (hcaafjsi)

 

 

 

 

 

The TTEST Procedure

 

Variable: newiq (newiq)

 

 

 

 

APPENDIX 3. Predicting Age Complaints Among FEVS Agencies: Poisson Regression Results

Predicting Age Complaints (N=72)

 

 

The GENMOD Procedure

 

 

 

 

 

 

 

APPENDIX 4. Predicting Age Complaints Among Form 462 Agencies: Poisson Regression Results

Predicting Age Complaints (N=263)

The GENMOD Procedure

 

 

 

 

 

 

 

APPENDIX 5. Gender and Education: Federal Sector vs. CLF, FY2017

Data Sources: The United States Census Bureau’s Current Population Survey Table Creator, 2017, located at https://www.census.gov/cps/data/cpstablecreator.html, and The Office of Personnel Management’s FedScope Data Cubes, located at https://www.fedscope.opm.gov/.

REFERENCES

Abramitzky, Ran, Leah Platt Boustan, and Katherine Eriksson. 2014. “A Nation of Immigrants: Assimilation and Economic Outcomes in the Age of Mass Migration.” J.P.E. 122 (June): 467-506.

Aydemir, Abdurrahman, and Mikal Skuteud. 2005. “Explaining the Deteriorating Entry Earnings of Canada’s Immigrant Cohorts, 1966-2000.” Canadian J. Econ. 38 (May): 641-72.

Borjas, G. 2015. “The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again.” Journal of Human Capital, 9(4), 483-517. Retrieved from https://www.jstor.org/stable/26456398.

Greenwald, Lisa and Copeland, Craig and VanDerhei, Jack, The 2017 Retirement Confidence Survey: Many Workers Lack Retirement Confidence and Feel Stressed about Retirement Preparations (March 21, 2017). EBRI Issue Brief, Number 431 (March 21, 2017). Available at SSRN: https://ssrn.com/abstract=2941583.

Johnson, Richard Warren and Haaga, Owen, Social Security Claiming: Trends and Business Cycle Effects (February 13, 2012). Center for Retirement Research at Boston College Working Paper No. 2012-5. Available at SSRN: https://ssrn.com/abstract=2004490 or http://dx.doi.org/10.2139/ssrn.2004490.

Kunze, Florian, et al. (2010). Age Diversity, Age Discrimination Climate and Performance Consequences−a Cross Organizational Study. Journal of Organizational Behavior, 32 (2): 264–290., doi:10.1002/job.698.

Lee, J. & Smith A., (2019). Regulating Wage Theft, Washington Law Review, 94(2): 759-822.

Lipnic, V. A. (2018, June). The State of Age Discrimination and Older Workers in the U.S. 50 Years After the Age Discrimination in Employment Act (ADEA). Retrieved from https://www.eeoc.gov/reports/state-age-discrimination-and-older-workers-us-50-years-after-age-discrimination-employment.

Macdonald, J. L. and Levy, S. R. (2016), Ageism in the Workplace: The Role of Psychosocial Factors in Predicting Job Satisfaction, Commitment, and Engagement. Journal of Social Issues, 72: 169-190. doi:10.1111/josi.12161

Mandel, H., & Semyonov, M. (2016). Going Back in Time? Gender Differences in Trends and Sources of the Racial Pay Gap, 1970 to 2010. American Sociological Review, 81(5), 1039-1068. Retrieved from http://www.jstor.org/stable/44245492.

Marini, M. (1989). Sex Differences in Earnings in the United States. Annual Review of Sociology, 15, 343-380. Retrieved from http://www.jstor.org/stable/2083230.

Maestas, Nicole (2010). Back to Work: Expectations and Realizations of Work after Retirement. The Journal of Human Resources, 45(3): 718-748. https://www.jstor.org/stable/25703474. 

Palmer, Kimberly. 10 Things You Should Know About Age Discrimination. Washington, DC: AARP Research, February 2017. https://www.aarp.org/work/on-the-job/info-2017/age-discrimination-facts.html.

Perron, Rebecca. The Value of Experience: AARP Multicultural Work and Jobs Study. Washington, DC: AARP Research, July 2018. https://doi.org/10.26419/res.00177.000.

Posthuma, R. A., Wagstaff, M. F., & Campion, M. A. (2012). 16 Age Stereotypes and Workplace Age Discrimination. The Oxford Handbook of Work and Aging, 298.

Suran Ahn, Na Kyoung Song, Unemployment, Recurrent Unemployment, and Material Hardships among Older Workers since the Great Recession, Social Work Research, Volume 41, Issue 4, December 2017, Pages 249–262, https://academic.oup.com/swr/issue/41/4

Toossi, Mitra, "Labor force projections to 2024: the labor force is growing, but slowly," Monthly Labor Review, U.S. Bureau of Labor Statistics, December 2015, https://doi.org/10.21916/mlr.2015.48.

U.S. Bureau of the Census. 2009. “Changes to the American Community Survey between 2007 and 2008 and the Effect on the Estimates of Employment and Unemployment.” US Bur. Census, Washington, DC.

U.S. Bureau of the Census. 2018. “Projected 5-Year Age Groups and Sex Composition: Main Projections Series for the United States, 2017-2060.” U.S. Census Bureau, Population Division: Washington, DC.

U.S. Bureau of Labor Statistics (2017).  Labor Force Statistics from the Current Population Survey Overview. U.S. Bureau of Labor Statistics,18 Apr. 2017, www.bls.gov/cps/cps_over.htm. 

U.S. Department of Labor. (2008, February). Report of the Taskforce on the Aging of the American Workforce. Retrieved from https://doleta.gov/reports/FINAL_Taskforce_Report_2_27_08.pdf. 

U.S. Equal Employment Opportunity Commission. Form 462 and MD-715 Data

Tables for FY 2017 and FY 2018, Table B-8, Tables: Annual Report on the Federal

Workforce, The U.S. Equal Employment Opportunity Commission, 8 Aug. 2019, 11:19:28

a.m., www.eeoc.gov/federal/reports/tables.cfm.

U.S. Equal Employment Opportunity Commission. The Age Discrimination in Employment Act of 1967, The Age Discrimination in Employment Act of 1967 (ADEA), The U.S. Equal Employment Opportunity Commission, 2 Feb. 2019, 2:33:21 p.m., www.eeoc.gov/laws/statutes/adea.cfm. 

U.S. Office of Personnel Management.  Data, Analysis & Documentation Federal Employment Reports, Federal Employment Reports, 24 June 2019, www.opm.gov/policy-data-oversight/data-analysis-documentation/federal-employment-reports/reports-publications/full-time-permanent-age-distributions/.

U.S. Office of Personnel Management (2017). Federal Employee Viewpoint Survey: Governmentwide Management Report, www.opm.gov/fevs. 

Wong, Cori (2019). Changing Organizational Culture: From Embedded Bias to Equity and Inclusion, Public Safety Journal, August: 26-30.