Author: agcnews

The U.S. Department of Labor announced a final rule to rescind a Trump administration rule, “Joint Employer Status under the Fair Labor Standards Act” that took effect in March 2020. The rescinded rule included a description of joint employment the Biden administration believes is contrary to statutory language and Congressional intent. The U.S. District Court for the Southern District of New York vacated most of the rule in 2020. Under the FLSA, an employee can have more than one employer for the work they perform. Joint employment applies when – for the purposes of minimum wage and overtime requirements – the department considers two separate…

On July 29, the Federal Acquisition Regulation (FAR) Council issued a proposed rule to add and expand Buy American Act requirements on direct federal construction projects (not federal-aid transportation projects). The proposed rule increases the domestic content required to 60% with increases in two years to 70% and then 75% in five years. It permits acceptance of products and construction materials up to six years after publication of the rule which are unavailable at an acceptable cost. It also states that a higher price preference may be identified for critical end products and construction materials. The rule was initiated as a result…

On July 28, the Senate agreed, 67-32, to begin debate on a $1.2 trillion bipartisan infrastructure package. Ahead of the vote, the bipartisan group of senators announced it had resolved all major issues on the package. As a result of this initial vote, the Senate will consider the package over the coming days and, perhaps, weeks. However, an actual legislative bill detailing what is in the package has yet-to-be released or formally introduced as of July 29. When a bill is introduced in the Senate and, if passed, the bill will head to the House of Representatives for consideration. A 57-page summary…

Houston-The Woodlands-Sugar Land and Odessa, Texas Have Worst 16-Month Construction Job Losses; Chicago Metro Area and Fargo, N.D.-Minn. Top Lists of Metros with Job Gains Since February 2020 Construction employment declined or stagnated in 101 metro areas between February 2020, the last month before the pandemic, and last month, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said that labor shortages and supply chain problems were keeping many firms from adding workers in many parts of the country. “Typically, construction employment increases between February and June in all but 30 metro…

Paul McLaughlin, Manager of Continuous Improvement for the Butz Family of Companies, which includes GBCA member Shoemaker Construction Co., has been a member of GBCA’s Construction Leadership Council Steering Committee since 2020. Representing the CLC, he has also served on GBCA’s Government Affairs and Education Committees. While he was introduced to the construction trades from his family, it was during his freshman year at Drexel University that he cemented his pursuit of a career in construction. Upon learning that Construction Management was a major and after sitting in on a class, he immediately changed his major. Now in the industry,…

On June 22, AGC along with over 100 other trade associations voiced their strong opposition to any attempts to roll back the 20 percent deduction for pass through businesses—S-corps, partnerships, limited liability companies—enacted in the Trump tax cuts under Section 199A of the federal tax code. Despite the opposition, Chairman Ron Wyden announced on July 20 that he would move forward with a bill to phase out Section 199A. AGC will oppose this bill that will increase taxes on small business construction companies. For more information, please contact Matt Turkstra at matthew.turkstra@agc.org

The U.S. Department of Labor has announced a Notice of Proposed Rulemaking to establish standards and procedures to implement and enforce Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” signed by President Biden on April 27, 2021. This Executive Order and its enacting regulations will: As AGC previously reported, Executive Order 14026 builds on Executive Order 13658, “Establishing a Minimum Wage for Federal Contractors,” signed by President Obama in 2014. The earlier order increased the hourly minimum wage to $10.10 for workers performing on or in connection with covered federal contracts, beginning Jan. 1, 2015, and the hourly minimum wage increased annually…

On July 16, AGC submitted regulatory comments on the U.S. Treasury Department’s interim final rule governing how state, local, territorial and Tribal governments can spend $350 billion from a COVID-relief fund established under President Biden’s $1.9 trillion COVID-19 relief law: the American Rescue Plan Act. AGC’s regulatory comments urge the Department to, among other things: (1) confirm and expand eligibility for all forms of infrastructure and building construction investments and related revenue streams; and (2) drop any reporting requirements encouraging government-mandated project labor agreements, local hiring requirements and the expansion of prevailing wage laws beyond the status quo. And, in a victory for…

According to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc., contractors are projecting 2021 construction staff wages to increase an average of 3.23%, as reported by over 300 companies in the 38th edition of the Construction / Construction Management Staff Salary Survey. For pay increase comparison, according to the WorldatWork, across all industries exempt professionals saw 2020 actual increases of 2.9% and they are projecting 2021 increases of 2.9%. For construction WorldatWork reported a 3.4% increase in 2020 and are projecting 3.3% for 2021. Contractors only have so many compensation dollars to spend and PAS monitored the changes in both base pay…

U.S. Immigration and Customs Enforcement (ICE) recently announced an extension of the flexibilities in rules related to Form I-9 compliance that was initially granted last year. Due to the continued precautions related to COVID-19, the Department of Homeland Security (DHS) will extend this policy until Aug. 31, 2021. The current extension includes guidance for employees hired on or after Jun. 1, 2021, and work exclusively in a remote setting due to COVID-19-related precautions. Those employees are temporarily exempt from the physical inspection requirements associated with the Employment Eligibility Verification (Form I-9) until they undertake non-remote employment on a regular, consistent,…