The U.S. Department of the Treasury recently issued a notice modifying the longstanding “use-or-lose” rule for health flexible spending arrangements (FSAs).  The updated guidance permits employers to allow plan participants to carry over up to $500 of their unused health FSA balances remaining at the end of a plan year. The modification was made in response to comments received pointing to the difficulty of predicting future needs for medical expenditures, the need to make FSAs accessible to employees of all income levels, and the desire to minimize incentives for unnecessary spending at the end of the year.

The battle over the National Labor Relations Board’s notice-posting rule has effectively ended by Board forfeit.  The rule would have required most private-sector employers to post a designated notice informing employees of the right to unionize and of other rights under the National Labor Relations Act (NLRA).  The Board issued the final regulation in August 2011 but put implementation on hold as a result of legal challenges.  In separate cases decided in May and June of 2013, both brought by AGC-supported organizations, the U.S. Courts of Appeals for the DC and the Fourth Circuits struck down the rule on different grounds.  On Jan. 2, 2014, the Board let the deadline for seeking Supreme Court review of those decisions to pass without action.

AGC of America’s next Open Shop Committee Web Meeting will take place on Jan. 29, 2014, at 2:00 p.m. EASTERN Standard Time.  Jeff Robinson, president of PAS, Inc., will provide a “Quick Learn” presentation about the latest information on open shop craft worker compensation and labor demand.  The web meeting will also include AGC reports on labor matters relevant to open shop contractors and an opportunity for a roundtable discussion about topics of interest to participants.  The event is free and open to all AGC members, whether members of the Committee or not.

The next quarterly conference call of AGC of America’s Union Contractors Committee is scheduled for Jan. 22, 2014, at 3:00 p.m. EASTERN Standard Time.   It will include AGC updates on topics relevant to union contractors and a roundtable discussion of interest to participants.  The call is open to all AGC union contractors and chapter staff.  AGC membership is required, but Committee membership is not.  Chapter staff and leaders are encouraged to actively participate in the discussion and to come prepared with information and questions related to local matters such as collective bargaining, jurisdictional disputes, labor supply, craft training, and other labor concerns.

On Dec. 17, 2013, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) will host its first of five webinars on the new regulations implementing Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).  The newly announced webinar series, “Moving Towards Compliance,” is aimed at educating contractors on the new regulations implementing Section 503 and the Vietnam Era Veterans’ VEVRAA.

In response to an August 20, 2013, letter from AGC, the U.S. Department of Labor’s Wage and Hour Division (WHD) has provided clarification on the application of the Davis-Bacon Act to survey crew workers.  Due to widespread confusion among construction contractors, AGC’s letter requested a withdrawal and reissuance of All Agency Memorandum (AAM) 212.  The AAM, regarding the application of the Davis-Bacon Act to survey crews, was issued by WHD on March 23, 2013.

On October 31, 2013 the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2014. Increases were not made to the individual limits on deferrals and catch-up contributions. However, the IRS increased from last year most of the general pension plan limitations, including the limit on annual compensation, as the cost-of-living index increase met the statutory thresholds that trigger adjustments. The following table highlights some of the key limits that affect tax-qualified pension plans.

Paying employees is a complicated business. For employers in retail and other industries where employees may not have bank accounts, payroll cards have emerged as a potential solution.  But are payroll cards an answer, or just an illusion?

AGC continues to monitor federal contracting agencies’ PLA policies and practices and to educate agencies about the problems with PLA mandates and bid preferences.  AGC’s efforts include over 80 letters and survey responses sent during the Obama Administration urging agencies not to impose such mandates or preferences.  In most cases, the letters were sent in response to agency announcements that a PLA mandate or preference was under consideration for a particular project or an anticipated set of projects in a particular area.  Of those, only one PLA mandate has been issued to date.

Union contractors facing increasing cost competition from open-shop contractors are often tempted to set up a separate nonunion firm and operate on a double-breasted, or dual shop, basis. While establishment of such operations can be accomplished lawfully and effectively, the road has many pitfalls. Two recent cases coming out of different federal appeals courts illustrate how uneven the terrain can be.