<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>

As previously reported by AGC, the U.S. Environmental Protection Agency (EPA) is accepting public comment on its draft 2017 National Pollutant Discharge Elimination System (NPDES) Construction General Permit (CGP) until May 26. AGC has taken numerous actions over the last several weeks to inform the EPA staff of AGC’s main concerns with the agency’s proposed draft, but more input from the construction industry would be helpful to shape the final rule. The paramount concern is the possible addition of a brand-new requirement that would make construction site “operators” publicly report (via an Internet post) their construction stormwater pollution prevention plans (SWPPPs). Please use AGC’s draft discussion document to share your concerns with EPA by the May 26 comment deadline. Although EPA’s CGP directly applies in only a handful of states and territories, it serves as a national model for state-issued CGPs.

AGC and its industry partners met with the Office of Management & Budget (OMB) to discuss the U.S. Department of Labor’s (DOL) Wage and Hour Division proposal to increase the overtime salary threshold from $23,660 per year to $50,440. The proposal would be adjusted annually, and while the intended goal of the administration is to guarantee overtime pay to most salaried workers earning less than $50,400 per year (conceivably resulting in higher wages for these workers), AGC’s analysis shows a different outcome.

AGC members have every reason to believe they are constantly being threatened by a barrage of new regulatory initiatives. AGC is following more than 20 major rulemakings that impact the industry right now such as the “Waters of the US” proposed rule, the silica rule, the “ambush” election rule, the overtime rule (see next story for an update on AGC’s efforts), and the “blacklisting” rule to name a few. Today, the Competitive Enterprise Institute released its annual survey of the size, scope, and cost of federal regulations, and how they affect American consumers, businesses, and the U.S. economy.

On Tuesday, the Senate Finance Committee held a hearing on ways Congress could reform the business tax code to make it more globally competitive and to consider the findings of the Committee’s bipartisan business income tax working group. Members also discussed anticipated discussion drafts on corporate integration and cost recovery reform from leaders of the committee. AGC has been actively involved in vetting the discussion drafts with both the committee’s majority and minority staff. AGC will continue to monitor these legislative proposals that have the aim to provide clarity, simplicity and certainty for construction firms.

<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>

AGC and its industry coalition partners in the Water Infrastructure Network have been working for a number of months to get significant water infrastructure provisions included in the 2016 Water Resources Development Act (WRDA) in the Senate. We were successful in getting many important provisions approved by the Committee. The bill creates a longtime AGC priority, a Clean Water Trust Fund, and, while this bill itself does not carry additional funding, it authorizes voluntary contributions to the trust fund. Creation of a trust fund dedicated to water infrastructure opens many new possibilities for future dedicated revenue prospects.

The Senate Environment and Public Works Committee approved an AGC-supported $9 billion Water Resources Development Act (WRDA), which authorizes new U.S. Army Corps of Engineers’ civil works construction projects, including locks, dams, levees, harbor maintenance dredging and environmental restoration projects, among other construction projects. Specifically, the bill authorizes 25 new Army Corps projects and modifies 4 existing projects. The bill will now move to the Senate floor for consideration. The House is expected to introduce its version of a WRDA bill in early May.

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.

This week the Senate passed the Energy Policy Modernization Act of 2015 by a vote of 85-12. The comprehensive energy bill included several provisions supported by AGC, including reauthorizing the Diesel Emission Reduction Act (DERA) program through 2021 at the current authorization level of $100 million per year. Further updates on DERA status and grant availability can be found here.