Remove user from observation checklist

Do you mean that they need to complete the other content in the course but not the OC? Only way I can think of would be to manually mark it as completed on the back-end...Since you added it as training materials, the course rules prevail and the user must complete what you set-up in order to complete the course.

We usually opt to schedule outside courses for just this reason.

You could create a separate course without the OC and have those users complete that instead and if needed, create an equivalency between the 2 courses...

Thanks ​@lrnlab!!  I have manually changed the course completion.  I also have a notification set up that go to a nurse to view the pratical skill.  Some users have redone the course as it was an annual course with a certification attached but not all will need to demonstrate the skill as they no longer require this update as they have changed customers.  The nurses receive the OC to complete but I want to be able to remove this manually from their to do list.