Husch Blackwell attorney Molly Kurt recently addressed this question in a review of cases in which OFCCP has attempted to assert jurisdiction over hospitals as covered federal subcontractors. Most recently, the U.S. District Court for the District of Columbia issued UPMC Braddock et al. v. Harris, in which the district court affirmed the decision of the U.S. Department of Labor’s Administrative Review Board, finding that the hospital is a covered federal subcontractor. The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) enforces Executive Order 11246, which requires equal employment and affirmative action for federal contractors and “covered subcontractors.” Covered subcontractor status attaches when the subcontractor either 1) stands in the shoes of the direct contractor, or 2) provides services that are necessary to the performance of the direct contract. The OFCCP has repeatedly tried to use “covered subcontractor” status to assert jurisdiction over hospitals that provide medical care through a subcontract with a government contractor. UPMC Braddock represents the agency’s latest attempt to broadly define the scope of its jurisdiction.
To learn more about these cases and whether your hospital may be subject to the requirements, you can read the full article here.