On December 14, 2017, in a 3-2 decision by its then Republican majority, the National Labor Relations Board (NLRB) in the Hy-Brand Industrial Contractors case ruled that, to be classified a "joint employer" of another company’s employees under the National Labor Relations Act, a business must have a direct and immediate control over the employees. The decision overturns the Obama Board’s highly controversial and AGC-opposed 2015 ruling in Browning-Ferris Industries and effectively returns the joint employment standard to the prior standard.
Christopher Halapy, Shook ConstructionClients’ needs and expectations relative to the services provided by their design and construction partners are evolving. Savvy clients have increased their demand for turnkey services and a higher level of detailed information far earlier in the project planning process. Beyond programming, owners are looking to understand milestone dates, disruption of ongoing operations, and a firm cost for the project, all earlier than this information is typically provided.
Forty states added construction jobs between November 2016 and November 2017, while 39 states added construction jobs between October and November, according to an analysis by the Associated General Contractors of America of Labor Department data released today. Association officials noted that firms in most states are adding jobs amid expectations that demand will continue to grow thanks to new tax cuts and regulatory reforms.
“Today, Congress passed comprehensive tax reform legislation that will lower rates, spur economic growth and impact construction businesses for years to come. However, this process did not start as well as it ended for the construction industry. (See chart linked here for details on the final bill)
Construction support staff wages rose by 3.5% in 2016 and contractors are projecting those wages to increase an average of 3.3% in 2017, according to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc. Based on over 175 companies in the 14th edition of the Construction Support Staff Salary Survey, PAS reports that pay increases have been fairly consistent the past few years. Although, PAS points out that historically predictions are typically about low, so year-end 2017 could exceed 3.3% and look similar to 2016’s 3.5% increase.
Construction employment increased by 24,000 jobs in November to the highest level since November 2008, according to an analysis of new government data by the Associated General Contractors of America. Association officials said that tight margins are keeping firms from paying even more to attract hard-to-find workers, noting that efforts to cut tax rates should help lead to higher average hourly earnings for the sector.
AGC called on the U.S. Environmental Protection Agency (EPA) to apply federally approved “Recommended Best Practices for Environmental Reviews and Authorizations for Infrastructure Projects” in delegated states that EPA has authorized to implement and enforce a federal environmental permit program. In response to EPA’s request for input, AGC’s Nov. 20 letter explains that where states have taken over the responsibility for executing federal authorizations and environmental reviews, the obligation to use best practices should transfer to the state permitting authority. A majority of states have been delegated authority to implement and enforce one or more provisions of the federal pollution control laws.
AGC commented this week on three separate Federal Highway Administration (FHWA) regulatory proposals to expedite project delivery by streamlining the federal environmental review process. The FHWA proposals implement various AGC supported provisions in the Moving Ahead for Progress in the 21st Century Act (MAP-21) and the Fixing America’s Surface Transportation Act (FAST Act), intended to make the National Environmental Protection Act (NEPA) procedures work better. In one proposal, AGC supported the state of Arizona taking responsibility for undertaking part of the NEPA review process and in so doing eliminating federal review. Eight states have or are seeking assignment of this review authority and AGC’s comments pointed out that FHWA and these states report significant reduction in the time it takes to complete the NEPA process. FHWA’s report indicates that states that have undertaken this responsibility have, “a greater awareness, understanding, and opportunity for improving environmental outcomes.”
For AGC’s most recent episode of the ConstructorCast, we sit down with Leah Pilconis, AGC’s Senior Counsel of Environmental Law, to talk about the complex world of environmental permitting and what AGC is doing to try to make it easier for construction companies. Our discussion examines the breadth of requirements, the opportunities to streamline regulations and make environmental protection more efficient, and where environmental regulations might be headed in the coming years.