CHA News Article

Federal Contractors Can Expect Changes in Compliance Assistance
OFCCP signals shift to compliance assistance

Last week, the Office of Federal Contract Compliance (OFCCP) issued the attached update emphasizing the agency’s role in compliance assistance. Titled “What Federal Contractors Can Expect,” the document explains that contractors “seeking OFCCP’s assistance with satisfying their nondiscrimination and equal employment opportunity obligations can expect clear, accurate, and professional interactions with OFCCP’s staff. OFCCP provides compliance assistance on a range of issues including technical help with understanding the requirements for developing an Affirmative Action Program.” 

The release of this document came at approximately the same time as an announcement that OFCCP Director Ondray Harris was stepping down after eight months. Deputy Director Craig E. Leen will serve as OFCCP’s interim director until a permanent director is named, at which time the agency’s direction could shift.

As a reminder, receipt of Medicare or Medicaid does not trigger federal contractor status. Whether participation in federal employee health benefits programs such as TRICARE constitutes a federal contract has been the subject of litigation. Several years ago, OFCCP issued a moratorium on enforcement relating to the affirmative obligations of TRICARE providers. In May, that moratorium was extended to May 7, 2021. 

Hospitals that have federal contracts should continue to monitor developments at OFCCP. Hospitals that are unsure about their status should engage experienced counsel to assist in making the determination.