OFCCP has finalized its rule making to officially confirm the Agency does not, and should not, exert authority over TRICARE providers.  OFCCP first took this position in a proposed rule making in November 2019.  In the final rule, OFCCP concluded it does not have jurisdiction over healthcare providers based solely on TRICARE provider network agreements.  In addition, OFCCP instituted a national interest exemption for TRICARE providers.  This rule finally provides legal certainty and formal regulatory guidance to organizations that provide TRICARE services.

With that said, it is critical to understand that both the proposed and final rule make it clear that

OFCCP will retain authority over a health care provider participating in such a network arrangement if the health care provider holds a separate covered Federal contract or subcontract.

Notably, OFCCP’s Final Rule does not affect its jurisdiction over healthcare providers participating in the Federal Employees Health Benefits Program (FEHBP), or Veterans Administration health benefit provider (VAHBP) agreements.  Thus, while the Final Rule does not affect jurisdiction in these areas, OFCCP states in the Final Rule that it

will consider additional subregulatory guidance as necessary to provide certainty and clarity

to the status of FEHBP and VAHBP providers.

For now, at least, this story seems to have finally reached a conclusion.

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Photo of Laura A. Mitchell Laura A. Mitchell

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with…

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with employers to build programs that benefit employees and create a stable, high-functioning workplace. Understanding that an inclusive, values-based culture provides a crucial competitive advantage in the modern workplace, Laura enjoys counseling companies on the development of proactive and equitable pay and diversity practices.

In Laura’s version of the reimagined workplace, attention to human capital issues, especially DEI and pay equity, would be the rule rather than the exception nationwide and she works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize this vision for her clients’ ongoing success. She helps clients understand all issues across the spectrum of their journey, helping to establish regular analyses as well as counseling organizations on implementation and compliance obligations, where applicable. Committed to putting her clients’ organizational goals first and foremost, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication.

Laura also represents companies in OFCCP matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming from OFCCP regulations. She personally oversees the development of hundreds of Affirmative Action Plans for clients each year and is intimately involved in the defense of OFCCP audits. Her approach to compliance is one of facilitation and conciliation while simultaneously advocating in the best interests of her clients.