By signing the National Defense Authorization Act (“NDAA”) on December 31st, President Obama dealt a blow to the OFCCP’s determined effort in gaining jurisdiction over the healthcare industry. For more than a decade, the OFCCP has been fighting, and seemingly winning, the battle to claim that healthcare facilities are considered subcontractors and are therefore subject to compliance under Executive Order 11246, Section 503 of the Rehabilitation Act, and the Vietnam Era Veteran Readjustment Assistance Act (VEVRAA).

OFCCP began their campaign to gain jurisdiction over healthcare with a very public dispute with Bridgeport Hospital (OFCCP v. Bridgeport Hospital, ARB No. 00-234 (Jan. 31, 2003)) where OFCCP filed a complaint when the hospital did not provide an Affirmative Action Plan after receiving an audit letter. The hospital responde