On June 19, the U. S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) released a final rule intended to expand association health plans (AHPs) and increase flexibility for small employers to join groups or associations to offer insured health coverage in the large group market at potentially more favorable pricing with less restrictive requirements. A number of AGC Chapters across the country currently recognize the need to offer alternative health care options and administer AHPs that offer “group health plan” coverage to employees of members. As outlined in response to the proposed version of the rule, AGC is supportive of the flexibility and opportunity the DOL intends to provide and pleased that existing AHPs were preserved in the final rule.
A federal district court has ruled that the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) violated the Fourth Amendment’s prohibition of unreasonable searches and seizures in an attempted audit of construction contractor Baker DC.
In conjunction with AGC’s 2018 workforce development campaign, we are currently seeking success stories and best practices in the areas of construction workforce development, industry image enhancement and industry recruiting. Our goal is to gather and share these success stories with member firms and AGC chapter staff in the hopes of increasing knowledge sharing and program collaboration, communicating lessons learned, and sparking innovative workforce solutions.
According to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc., construction staff wages rose by 3.7% in 2017 and contractors are projecting wages to increase an average of 3.4% in 2018. The prediction is based on data gathered from 295 companies who participated in the 36th edition of PAS’s Construction/CM Staff Salary Survey. Though the projected 2018 increase is 3.5% for professionals & middle managers, it is pointed out that historically predictions are usually about .5% low, so year-end 2018 is expected to exceed 2017’s 3.7% increase.
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In a landmark decision, the Supreme Court of California in Dynamex Operations West, Inc. v. Superior Court adopted a new test to determine whether a worker performing services for a company is an employee or an independent contractor under California’s wage orders. The new three-factor test, known as the ABC test, will determine whether a company “employs” a worker under the wage orders, which address certain requirements for minimum wage, overtime, and meal and rest periods, among others. The ABC test, which has long existed in other parts of the country in different forms, has not previously been used in California.
On May 21, 2018, the U.S. Supreme Court upheld the legality of arbitration agreements containing collective- and class-action waivers. The Court held that arbitration agreements providing for individualized proceedings are valid and that neither the Federal Arbitration Act’s (“FAA”) savings clause nor the National Labor Relations Act (“NLRA”) suggests otherwise.
“Optimism about future job opportunities and market growth in 2018 and beyond remains high among union contractors, labor representatives and owner-clients – but at the same time, many remain concerned about a growing shortage of union craft workers,” reports The Association of Union Constructors (TAUC) in a recent press release about the publication of the 2018 Union Craft Labor Supply Study. The study was conducted by TAUC and the AGC-supported Construction Labor Research Council.
On May 9, 2018, the Trump Administration unveiled its Spring 2018 Unified Agenda of Regulatory and Deregulatory Actions mapping out federal agency priorities for the coming months. This bi-annual publication informs the public of regulations under consideration or planned by federal agencies. The present agenda includes several submissions by labor agencies.
The AGC Labor and Employment Law Council (LELC) held its 34th Annual Construction Labor Law Symposium on May 3 and 4 in Washington, DC. Attorneys and labor relations managers from across the country gathered to learn about labor and employment law developments and government initiatives relevant to construction employers.