In yet the latest chapter of the ongoing debate between the health care industry and OFCCP over the reach of the Agency’s jurisdiction, a federal court has determined OFCCP has jurisidction over three Pittsburgh-area hospitals receiving payments from a health plan for providing medical services to U.S. government employees.

In light of this decision, OFCCP likely will continue to aggressively assert jurisdiction over companies it deems subcontractors, even in the absence of contracts that reference the affirmative action regulations. Therefore, it is critical that employers, especially those in the health care industry, inventory and review customer agreements to determine whether the goods or services being provided might make them federal subcontractors, subject to affirmative action obligations.