Hospitals That Accept, Participate in TRICARE Still in the Crosshairs of the OFCCP

February 13, 2014Articles Becker’s Hospital Review

Over the past several years, the U.S. Department of Labor's Office of Federal Contractor Compliance Programs has engaged in ongoing efforts to assert jurisdiction over hospitals and the healthcare industry based on its assertion that these entities are government subcontractors within the meaning of 41 C.F.R. § 60-1.3. The OFCCP is the federal agency responsible for enforcing the contractual promise of affirmative action and equal employment opportunity required of those who do business with the federal government.

Pursuant to 41 C.F.R. § 60-1.3, a subcontract constitutes any agreement between a contractor and a third party for either: 1) the purchase, sale or use of personal property or non-personal services, which is necessary for the performance of any one or more contracts (prong one); or 2) under which any portion of the contractor's obligation under any one or more contracts is performed, undertaken or assumed (prong two).

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