By ADM Notice Number 310 dated July 17, 2013, OFCCP provides valuable guidance for calculating back-pay for victims of employment discrimination. OFCCP explains the two models of calculating such relief—the formula model and the individual model—and it sets forth when it is appropriate to use a particular model and how wages are calculated under that model.
In a nutshell, the formula method is less precise and is utilized to approximate losses in a variety of circumstances, such as where (1) documentation isn’t available, or (2) the matter involves a large class action, and it would be too time-consuming or unduly burdensome to calculate wages for each class member.  The individual relief model, on the other hand, is properly used (1) for small class actions, (2) where documentation to support back wages is available, and/or (3) the liability period is of short duration.
The OFCCP directive further explains how back-pay is calculated under each of these models.  For the details, go