A study released in August by the Beacon Hill Institute found that New Jersey schools built under controversial government-mandated project labor agreements cost 16.25% more than schools that were bid and constructed through fair and open competition, free from PLA requirements. The study, which looked at 107 schools built in New Jersey since 2002, found that those built under a PLA mandate cost $57.84 more per square foot (in 2018 prices) relative to non-PLA projects. Taxpayers would have saved $565.1 million, or more than $7.1 million per project, if PLAs had not been used.

“The latest study by the Beacon Hill Institute corroborates past research in California, Connecticut, Massachusetts, New York and Ohio that found anti-competitive government-mandated PLAs prevent taxpayers from getting the best return on their investment,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “There is a reason a total of 25 states have passed laws restricting government-mandated PLAs: All taxpayers deserve efficient, accountable and effective construction spending and investment in schools and infrastructure free from costly schemes that discourage competition from qualified, local workers and contractors.

“ABC encourages lawmakers to take the study’s findings into consideration as they deliberate legislation promoting government-mandated PLAs on public works projects,” said Brubeck. “Additionally, ABC encourages President Trump to rescind President Obama’s Executive Order 13502, which promotes costly PLA mandates on federal and federally assisted construction projects, and replace it with a common-sense policy that would guarantee fair and open competition from America’s best construction companies and create opportunities for America’s entire skilled construction workforce.”

In 2009, President Obama signed Executive Order 13502, which strongly encourages, on a case-by-case basis, government-mandated PLAs on large-scale federal construction projects and permits state and local governments procuring federally assisted construction contracts to mandate PLAs.

ABC has long opposed wasteful and discriminatory PLA mandates, which past academic studies have shown drive up the cost of construction projects between 12-18% and which discriminate against the 87.2% of U.S. construction workers who choose not to join a union. PLAs typically ensure construction contracts are awarded only to companies that agree to recognize unions as the representatives of their employees on that job; use the union hiring hall to obtain workers at the expense of existing qualified employees; obtain apprentices through union apprenticeship programs; follow inefficient union work rules; pay into union benefit and multi-employer pension plans workers will never benefit from unless they meet vesting requirements; and force workers to pay union dues and/or join a union as a condition of employment.

The full study, The Effects of Project Labor Agreements on Public School Construction in New Jersey, is available on the Beacon Hill Institute's website.

On Sept. 19, the U.S. Department of Labor’s Wage and Hour Division published a notice in the Federal Register to announce that the minimum wage for federal contractors will increase to $10.80 per hour from the current $10.60 beginning Jan. 1, 2020.

The increase comes as result of the Obama DOL’s final rule implementing Executive Order 13658, Establishing a Minimum Wage for Contractors (Feb. 12, 2014), which raised the hourly minimum wage paid by contractors to workers performing work on covered federal contracts to $10.10 with annual increases thereafter. This was determined by the secretary of labor in accordance with the methodology set forth in the order.

ABC’s General Counsel, Littler Mendelson, P.C., published an analysis with more information on the EO and notice.

On Sept. 24, the U.S. Senate Committee on Health, Education, Labor and Pensions voted 12-11 to advance the nomination of Eugene Scalia to serve as the secretary of labor. The nomination will move to the full Senate for a final confirmation vote.

Scalia is currently a partner at Gibson, Dunn & Crutcher in Washington, D.C., where he co-chairs the firm’s Administrative Law and Regulatory Practice Group and previously co-chaired the Labor and Employment Practice Group for 12 years. Additionally, Scalia served as solicitor of DOL under President George W. Bush’s administration from 2002-2003, special assistant to Attorney General William P. Barr during the George H.W. Bush Administration from 1992-1993, and as a speechwriter for Secretary of Education Bill Bennett from 1985-1987 during the Reagan administration.

President Trump nominated Scalia, who would replace former Secretary of Labor Alexander Acosta, to head the Department of Labor on Sept. 11. On Sept. 19, the Senate HELP Committee held a confirmation hearing on Scalia’s nomination.

ABC sent a letter of support before the Sept. 19 hearing to HELP Committee Chairman Sen. Lamar Alexander (R-Tenn.) and Ranking Member Sen. Patty Murray (D-Wash.) urging the Senate HELP Committee for a fair, thorough hearing and for the swift approval of his nomination.

On Sept. 12, the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers signed the final rule rescinding the 2015 final Clean Water Rule: Definition of "Waters of the United States," also known as the WOTUS final rule. ABC President and CEO Michael Bellaman attended the signing ceremony for the rulemaking.

According to an EPA press release, this final rule completes the first in a two-step rulemaking process to define the scope of “waters of the United States” that are regulated under the Clean Water Act. With this final repeal, the agencies will implement the pre-2015 regulations, which are currently in place in more than half of the states.

As part of the second step, EPA and the Corps announced a proposal in December 2018 that would provide a clear definition of the difference between federally regulated waterways and those waters that rightfully remain solely under state authority. The final rule for this regulation is expected to be issued in December 2019.

These rulemakings came at the direction of President Trump’s Executive Order 13778, Restoring the Rule of Law, Federalism and Economic Growth by Reviewing the “Waters of the United States” Rule, which states that the WOTUS final rule should be reviewed in order to protect American waterways from pollutants in the most economical way.

The final rule will go into effect on Dec. 23. More information on the final rule can be found on the EPA website.

ABC has long been a vocal opponent of the Obama-era WOTUS rule since it was first proposed in April 2014 and submitted comments on EPA and the Corps’ proposals on step one and step two of the WOTUS rulemaking, stating its continued commitment to work with the agencies and ensure the clearest possible regulations so that its members have the information they need to comply with the law. Additionally, ABC filed comments as a member of the Waters Advocacy Coalition.   

The Hitt family of HITT Contracting, a member of ABC of Virginia,  recently donated a $16 million gift to the Act on Addiction campaign, a program launched by Inova Health System that fuels awareness, combats stigma and provides resources for those suffering from substance abuse in the Northern Virginia area. There are nearly 20 million American adults who suffer from addiction, and a recent survey says that approximately half of adults do not know how to help someone in need of treatment or support.

“While these statistics are startling, each number represents the life of an individual, a friend, a family and a neighbor in our community,” says Brett Hitt, co-chairman of HITT Construction. “We are honored to play a role in supporting Inova Heath Foundation in this mission to raise awareness about the dangers of addiction.”

For more on the Act on Addiction campaign, click here.

Check out media coverage of the Hitt family's donation here. 

In light of a recent court decision, certain employers will be required for the first time to submit detailed data on employee compensation and hours worked (or Component 2 data) for calendar years 2017 and 2018 to the U.S. Equal Employment Opportunity Commission as part of their annual EEO-1 form submission by Sept. 30, 2019.

According to the EEOC’s FAQs, employers, including federal contractors, are required to submit Component 2 compensation data for 2017 if they had 100 or more employees during the 2017 workforce snapshot period. Additionally, employers, including federal contractors, are required to submit Component 2 compensation data for 2018 if they had 100 or more employees during the 2018 workforce snapshot period. Information about the workforce snapshot period can be found in the FAQs.

On July 15, the EEOC opened the online portal for the collection of data on pay and hours worked (or Component 2 data) for calendar years 2017 and 2018. In addition to the online portal, a data file upload function and validation process is now available, which serves as an alternative data collection method for employers who prefer to utilize data file upload capability. Information regarding the data file upload function is available at https://eeoccomp2.norc.org.

The EEOC also recently added to the website additional resources for employers, including a sample data collection form, an instruction booklet for filers, upload file specifications, upload file validation process, a fact sheet, reference documents and a Frequently Asked Questions page.

Additionally, the website lists help desk information to offer filers additional support. Interested parties can contact the help desk by phone at (877) 324-6214 or by emailing [email protected].

NOTE:  The submission of Component 2 data was initiated during the Obama administration. However, under the Trump administration, OMB blocked the EEOC from requiring employers to submit any compensation data. In March 2019, the D.C. District Court ordered the OMB stay to be vacated. Over the last few months, ABC has been active in efforts to reverse the court’s March decision or, at minimum, extend the time period for employers to comply with any new Component 2 pay data requirement.

This article is intended for informational purposes only and does not constitute legal advice or opinion.

On Tuesday, Sept. 10, Republican special election candidates Greg Murphy and Dan Bishop won their highly anticipated respective congressional campaigns in North Carolina.

Murphy, a urologist and state representative from Greenville, won over former Greenville Mayor Allen Thomas (D) to replace the late Congressman Walter Jones (R-N.C.-3) who passed away last February.  

In North Carolina’s 9^th District, State Sen. Dan Bishop (R) beat 2018 Democratic candidate Dan McCready, filling the seat that has remained vacant since the 2018 election result was never certified due to voter fraud allegations. Bishop won the highly competitive race by less than 4,000 votes.

Now that these two special elections are over, all 435 seats of the House are filled for the first time in this Congress.

September is Suicide Prevention Month. According to the Centers for Disease Control and Prevention, the construction industry has the highest rate of suicide, as well as the highest number of suicides among all industries. This is a public health crisis, and ABC is committed to doing better for our workforce and their families.

In 2016, the Construction Financial Management Association established the Construction Industry Alliance for Suicide Prevention. Now counting more than 75 industry organizations as members, including ABC, it is our goal to reduce suicide risk across the construction industry, equipping companies to better address mental health issues and promoting the safety and wellbeing of construction’s most important asset—our people.

For more information or to find help for someone at risk, please visit preventconstructionsuicide.com.

Apply for STEP, AQC by Nov. 1 To Be Eligible for ABC’s 2020 Top Performers^SM Ranking

What defines the best of the best? ABC’s Top Performers lists—the only rankings of their kind—recognize member contractors’ achievements in safety, quality, diversity, project excellence and special designations, ranked by work hours. You must achieve STEP Gold or higher and earn the Accredited Quality Contractor designation to qualify—applications are due by Nov. 1 for consideration in the rankings.

In addition, members should update their profile on FindContractors.com to ensure any special designations are noted in the Top Performers rankings. Read on for more information on how to attain each of these qualifications. 

ABC’s STEP Safety Management System
Every ABC member wants to send its workers home safely every night. Take the first step towards achieving world-class safety by participating in STEP, whether you are beginning your safety journey or continuing to strengthen your performance. Top-performing STEP participants are 680% safer than the U.S. Bureau of Labor Statistics industry average. Getting started with STEP is free, and it can help you lower your workers compensation insurance rates. Visit abc.org/step or email [email protected] for more information.

ABC’s Accredited Quality Contractor Designation 
Is your company AQC material? AQC members demonstrate their commitment to financial fitness, world-class safety, workforce development, talent management, diversity and inclusion, the highest levels of quality construction and the betterment of the communities in which they work. If your company excels in these areas, you too can earn the AQC accreditation, which is recognized by the Construction Users Roundtable. For more information, visit abc.org/aqc or email Jake Reedy at [email protected].

FindContractors.com
Be sure your profile is up to date in FindContractors.com to have your special designations listed in the Top Performers rankings. ABC’s member database features contact information for more than 13,000 contractors. Members can search for an ABC contractor, supplier or other construction professional by name, chapter, location, sales volume or type of construction. ABC populates member profiles with information on whether they have earned an Excellence in Construction® award, participate in the STEP safety management system and Accredited Quality Contractor programs, have federal designations and have signed the Drug- and Alcohol-Free Workplace Pledge. Contact [email protected] for a login if you don’t have one.
 
Visit abc.org/TopPerformers for the digital edition of the 2019 Top 150, Top 50 With Special Designations and Top 20 by Region or read the news release for more details.
 

On Sept. 12, the U.S. Department of Labor and the Internal Revenue Service will hold a webcast providing employers with compliance assistance on the joint final rule on health reimbursement arrangements.

According to a DOL news release, under the final rule, which was released by the DOL, the U.S. Department of the Treasury and the Department of Health and Human Services, employers will be able to use what are referred to as individual coverage HRAs to provide their workers with tax-preferred funds to pay for the cost of health insurance coverage that workers purchase on the individual market, subject to certain conditions, starting in January 2020.

The DOL- and IRS-led webcast will include topics such as the benefits of offering these expanded options, who can offer them, how they work, what responsibilities an employer has, when employers can start offering them and where to find more information.

Register for the upcoming webcast, which will take place on Thursday, Sept. 12, at 2 p.m. ET. Additional information on HRAs can be found on the DOL website.