42 U.S.C. § 3056b — Participants not Federal employees

(a) Inapplicability of certain provisions covering Federal employees Eligible individuals who are participants in any project^* funded under this subchapter must not be considered to be Federal employees as a result of such participation and must not be subject to part III of title 5. (b) Workers’ compensation No grant or subgrant must be made and no contract or subcontract must be entered into under this subchapter with an entity who is, or whose employees are, under State^* law, exempted from operation of the State workers’ compensation law, generally applicable to employees, unless the entity must undertake to provide either through insurance by a recognized carrier or by self-insurance, as authorized by State law, that the persons employed under the grant, subgrant, contract, or subcontract must enjoy workers’ compensation coverage equal to that provided by law for covered employment.