AGC submitted comments to the U.S. Department of Transportation (DOT) on its proposal to end its long standing prohibition against the use of geographic-based/local hire preferences on construction contracts that receive federal funding from the Federal Highway Administration (FHWA) or the Federal Transit Administration (FTA). AGC called on DOT to stop the pilot program, which would allow state and local governments to use geographic hiring preferences over the next year, and to refrain from making these changes permanent by altering existing FHWA and FTA regulations that prohibit their use.
AGC’s comments pointed out that local hiring requirements were rejected by the U.S. Supreme Court because they violate the Privileges and Immunities clause of the Constitution. AGC engaged the law firm, Smith Currie & Hancock LLP, to prepare a legal memo detailing the long history of court decisions declaring these preferences unconstitutional, and was included as part of AGC’s extensive comments challenging the proposal. AGC’s comments also pointed out that local hiring requirements significantly impact a contractor’s workforce by creating a possible scenario where long-term, highly-skilled workers may have to be laid off in order to meet the local hire mandate. Then, in order to comply with the requirements, employers would have to bring in unnecessary and unskilled workers to fill those now-vacant positions, creating additional costs and safety concerns. This association continues to remind legislators that construction work is not temporary, but is a long-term career for many workers who would unfairly suffer if these preferences are implemented.
AGC suggested that training, changes to some federal requirements, and other outreach initiatives are more realistic ways to give the unemployed and underemployed opportunities for careers in construction. At a time when workforce shortages are of concern to the construction industry, providing individuals with the training needed is the better approach. AGC has offered to work with DOT on these issues.
AGC is also working with our allies in Congress to prevent DOT from moving forward with this initiative and working to ensure that the pending transportation reauthorization legislation does not have any provisions permitting the use of geographic hiring preferences.
For more information, please contact Brian Deery at deeryb@agc.org or (703) 837-5319. Return to Top