OFCCP Stays Enforcement of Affirmative Action Obligations Against Military Healthcare Subcontractors for Five Years | Practical Law

OFCCP Stays Enforcement of Affirmative Action Obligations Against Military Healthcare Subcontractors for Five Years | Practical Law

The Department of Labor's (DOL) Office of Federal Contract Compliance Programs (OFCCP) has issued a directive setting a five year moratorium on its enforcing affirmative obligations under Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam-Era Veterans Readjustment Assistance Act (VEVRAA) of health care subcontractors participating in TRICARE, the Defense Department's health care program for active and retired military members.

OFCCP Stays Enforcement of Affirmative Action Obligations Against Military Healthcare Subcontractors for Five Years

by Practical Law Labor & Employment
Published on 12 May 2014 • USA (National/Federal)
The Department of Labor's (DOL) Office of Federal Contract Compliance Programs (OFCCP) has issued a directive setting a five year moratorium on its enforcing affirmative obligations under Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam-Era Veterans Readjustment Assistance Act (VEVRAA) of health care subcontractors participating in TRICARE, the Defense Department's health care program for active and retired military members.
On May 7, 2014, the DOL's Office of Federal Contract Compliance Programs (OFCCP) issued a directive setting a five year moratorium on its enforcing affirmative obligations under Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam-Era Veterans Readjustment Assistance Act (VEVRAA) of health care subcontractors participating in TRICARE, the Defense Department's health care program for active and retired military members, effective immediately.
These laws require federal contractors and subcontractors to take affirmative steps to ensure equal employment opportunity in their employment processes and to include an equal opportunity clause in all contracts and subcontracts. However, due to disputes about whether these laws apply to TRICARE subcontractors, the agency is suspending its enforcement efforts against these subcontractors, including:
  • Closing any open or planned compliance reviews.
  • Halting its enforcement of affirmative action programs and recordkeeping obligations.
During the moratorium, the agency will:
  • Engage in outreach and provide technical assistance to subcontractors to provide clarity on their legal obligations under Executive Order 11246, Section 503 and VEVRAA, by:
    • providing information on developing cost effective affirmative action plans and recordkeeping and applicant tracking systems;
    • conducting regional and national webinars explaining federal contractor and subcontractor obligations; and
    • holding sessions to better understand the unique issues facing TRICARE subcontractors to provide relevant and targeted technical assistance.
  • Work with other federal agencies to clarify the coverage of health care providers under federal statutes applicable to subcontractors.
  • Continue to investigate discrimination complaints.
This moratorium applies to all health care entities participating in TRICARE:
  • Only as subcontractors under TRICARE.
  • As subcontractors under TRICARE and as subcontractors under any Medicare program.
  • As subcontractors under TRICARE and as subcontractors under the Federal Employee Health Benefits Program.
  • As subcontractors under TRICARE and as subcontractors under any other federal health program.
The moratorium does not apply to:
  • Health care entities that participate in TRICARE as subcontractors and hold prime contracts with a federal agency.
  • TRICARE subcontractors that hold a separate, independent federal subcontract not related to health care.
For more information on the moratorium, upcoming training and technical assistance, see the DOL website.