<p>On May 18, the U.S. Department of Labor released its <a href="https://www.dol.gov/featured/overtime"><u>final rule</u></a> implementing changes to the Fair Labor Standards Act (FLSA) overtime regulations. The most significant change is a doubling of the standard salary threshold for exempt employees – from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). The rule takes effect on Dec. 1, 2016. In 2015, AGC sent both <a href="https://www.agc.org/sites/default/files/Files/Labor%20%26%20HR%20%28public%29/AGC%20Comments%20to%20Overtime%20NPRM%20-%20Final_2.pdf"><u>individual comments</u></a> and signed onto <a href="https://www.agc.org/sites/default/files/Files/Labor%20%26%20HR%20%28public%29/PPWO%20Comments%20Overtime_1.pdf"><u>coalition comments</u></a> on the proposed rule. These comments raised strong concerns that the proposed salary threshold of $970 per week ($50,440 per year) would be too large an increase for employers to absorb all at once. While not all of AGC’s and the coalition’s recommendations were accepted, the final rule does establish a lower salary threshold than originally proposed. The final rule’s concession for bonuses and commissions and its abstinence from changing the duties test are also consistent with AGC’s recommendations.</p>
<p>This week, AGC <a href="http://newsmanager.commpartners.com/agcleg/downloads/2016-04-26%20Senate%20Flake%20Amdt%20USACE%20Funding.pdf"><u>successfully blocked</u></a> legislation that would cut millions of dollars from the Army Corps of Engineers civil works construction program in fiscal year 2017. Sen. Jeff Flake introduced the amendment to the USACE annual funding bill that failed on an <a href="http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=114&session=2&vote=00063"><u>84-12</u></a> vote. The Senate continues to consider the USACE funding bill as of publication.</p>
In what may be a 12-round bout, AGC won round one to block President Obama’s Blacklisting Executive Order. Late last night, the House Armed Services Committee added an AGC-backed provision to the National Defense Authorization Act—a bill that has been annually enacted into law for 54 consecutive years—that ensures the EO will not apply to Department of Defense and National Nuclear Security Administration contracts. AGC will work to expand the application of the EO government-wide when the bill hits the House floor and during consideration in the Senate.
Earlier this week, AGC hosted a day of roundtable discussions in Denver, Colo. that brought together environmental professionals who work for some of the nation’s leading construction firms. The group shared their best practices and strategies for incorporating environmental stewardship into their companies’ projects and overall business operations. A consistent theme throughout the discussions was the value in using every opportunity to get in front of the construction workforce and raise environmental awareness. Certainly there is no better opportunity than Earth Day, for AGC to share its multi-year collection of contractor ideas and tips on how to approach environmental issues: straight from one environmental manager to another.
AGC submitted comments on the Federal Acquisition Regulation (FAR) Council’s proposed rule to require prime contractors to self-report late or reduced payments to contracting officers. Under the proposed rule, unjustifiable delays or reductions in subcontractor payment under the terms and conditions of the subcontract would lead to a negative past performance review for the prime contractor. AGC’s comments concluded that the proposed rule is unnecessary and needlessly burdensome given existing Prompt Pay Act safeguards and small business subcontractor payment acceleration executive measures.
Requests Improved Data Reporting to Encourage CO Accountability
AGC, along with the American Subcontractors Association, called on the Federal Acquisition Regulation (FAR) Council to improve the data federal agencies collect regarding the administration of change orders in response to the Council’s information request. AGC’s recommendations would require federal agencies to collect a range of data regarding the timeliness of action by the contracting officer (CO) in an effort to encourage greater CO accountability.
Urge Your Congressman to Delay Implementation
Please contact your member of Congress to urge them to delay implementation of the Blacklisting Executive Order. This President Obama executive order will require federal prime and subcontractors to report violations of 14 federal labor laws and "equivalent" state labor laws during the previous three years, and again every six months, on federal contracts over $500,000.
Citing a contractor's control over employees at a worksite and the payment of hourly wages, among other factors, a Connecticut judge ruled the contractor could not evade Occupational Safety and Health Administration fines by claiming the employees were independent contractors. The decision in a case involving Royal Construction of Canton, Conn., "upholds a basic tenet of the OSH Act, the employer/employee relationship," said Kim Stille, OSHA's regional administrator for New England. EHS Today
Contractors apparently now have more direct access to manufacturers, who are approaching them and going around the traditional middlemen. The practice is said to be more common with makers of lighting. One information technology consultant and three electrical contractors relate their experiences. TED Magazine
Employers reporting a workplace death or injury to the Occupational Safety and Health Administration should be cautious about submitting such information online, which could put them at risk of admitting fault, some lawyers say. "I don't know a single employer who completes an effective and thoughtful incident investigation in eight hours or 24 hours, so I think it's premature to commit in writing to some version of the incident," lawyer Eric Conn says. Business Insurance (tiered subscription model)