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TPA as DER
September 1, 2001
DER/Employer, Service Agents, Third-Party Administrator
General Requirements, Public Interest Exclusion (PIE)
If a C/TPA is hired as an “independent safety consultant” that executes all aspects of the employer’s safety and drug and alcohol testing programs, can the C/TPA act as a DER?
Answer
- Service agents are prohibited from acting as DERs under any circumstance.
- The fact that an organization that is called an “independent safety consultant” acts as a consultant to an employer for purposes of executing a drug and alcohol testing or safety program does not make it any less a service agent. It is still prohibited from acting as a DER.
Question
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