As a follow up to Secretary Perez’s letter to Congress proposing a five year moratorium on OFCCP compliance reviews of TRICARE employers, OFCCP 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.