Daily Labor Report®

Companies Getting FCC Funds Aren’t Contractors: Labor Department

July 31, 2019, 8:21 PM

Companies that receive money from the Federal Communications Commission’s Universal Service Fund aren’t federal contractors, and therefore not subject to a Labor Department federal contractor watchdog’s jurisdiction, according to an opinion letter signed by a senior DOL official.

The Universal Service Fund, which was formed with the goal of providing universal telecommunication service to all Americans, more closely resembles a grant, rather than a contract, the opinion letter states. It was written by the Office of Federal Contract Compliance Program Director Craig Leen. A bevy of telecommunications carriers fund the endowment, “including wireline and wireless phone companies and interconnected Voice...

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