Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
For nearly four years, the Office of Federal Contract Compliance Programs (OFCCP) has been tenaciously pursuing jurisdiction over healthcare providers based on the theory that providers participating in, and receiving more than $50,000 in reimbursement from, the Department of Defense's TRICARE program qualify as federal government subcontractors who are required to comply with the agency's regulations. Even when Congress passed legislation in December 2011that appears designed to reject OFCCP's position, the agency's director, Patricia Shiu, responded that "this is not over yet."
Well, the issue may be over now. On October 19, 2012, the Department of Labor's Administrative Review Board (the ARB or Board), in a divided opinion, rejected the OFCCP's argument that it had jurisdiction over Florida Hospital of Orlando based solely on the hospital's participation in TRICARE. See OFCCP v. Florida Hospital of Orlando, ARB Case No. 11-011. Unfortunately, the decision leaves open the possibility that some arrangements under TRICARE could support OFCCP jurisdiction.
To learn more about the decision, please continue reading Littler's ASAP, ARB Rejects OFCCP's Claim of Jurisdiction based on Florida Hospital's TRICARE Participation, by David Goldstein.