The U.S. Department of Labor, Office of Federal Contract Compliance Programs (OFCCP), the federal agency tasked with enforcing the affirmative action requirements of Executive Order 11246 and related federal statutes, is notifying TRICARE network providers that any on-going compliance reviews are “on hold,” pending the outcome of current litigation challenging the OFCCP’s jurisdiction over health care providers that are part of a TRICARE provider network. TRICARE is the government program under which active duty and retired military service members and their dependents receive health care. Executive Order 11246 and related statutes apply to federal contractors and subcontractors that meet specific legal requirements.
The litigation began several years ago when the OFCCP filed an administrative complaint with the U.S. Department of Labor’s Administrative Review Board (ARB) against Florida Hospital of Orlando to force the hospital to submit to a compliance review. Prior to this case, the OFCCP had never asserted jurisdiction over an employer based solely on its status as a TRICARE network provider. In October 2010, an administrative law judge issued a recommended decision adopting the OFCCP’s position that TRICARE network providers are federal subcontractors. Florida Hospital sought review by the ARB, and that review is still pending.
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