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OFCCP Issues New TRICARE Directive - Office of Federal Contract Compliance Programs

As a follow up to Secretary Perez’s letter to Congress proposing a five year moratorium on OFCCP  compliance reviews of TRICARE employers, OFCCP (Office of Federal Contract Compliance Programs) issued a directive detailing the Agency’s position. 

In addition to confirming OFCCP’s commitment to cease auditing TRICARE employers for the next five years, the directive sets out OFCCP’s plan to

”engage in outreach and technical assistance to provide greater clarity for the TRICARE subcontractor community about their obligations under the laws administered by OFCCP.”

The Directive also provides instructions for TRICARE employers who receive scheduling letters to request administrative closure of the compliance reviews based on the moratorium.  As part of the process, a TRICARE employer seeking closure of a compliance review will need to submit a copy of its TRICARE agreement.

It is clear that while OFCCP has agreed to hold off on compliance reviews of TRICARE participants over the next five years, the Agency believes it has jurisdiction over these entities and will look to resume audits once the moratorium concludes.  As a result, its important for those in the healthcare industry to monitor the source of their revenue, and for those who only receive TRICARE funds, prepare to come into compliance with OFCCP’s regulations, including the new veterans and disability obligations, if they have not already done so.

Jackson Lewis P.C. © 2020National Law Review, Volume IV, Number 128

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About this Author

Mickey Silberman, Labor and Employment law attorney, Jackson Lewis Law firm, Principal
Principal

Mickey Silberman is a Principal in the Denver, Colorado, office of Jackson Lewis P.C. He is the Chair of the Jackson Lewis Affirmative Action & OFCCP Defense Practice Group and the Co-head of the firm’s Pay Equity Resource Group.

Mr. Silberman and the practice group annually prepare thousands of affirmative action plans for employers in all industries and throughout the country. During the past several years, Mr. Silberman has directed the defense of hundreds of OFCCP audits, including successful defense of Corporate Management (“glass ceiling”) Reviews....

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