On July 27, the Office of Management and Budget and the Department of Defense announced the implementation of mask mandates for all federal workers, contractors, and visitors to federal facilities in areas with substantial or high community transmission of COVID-19 infections. Federal employees and 鈥渙nsite contractors鈥 will be required to 鈥渁ttest鈥 to vaccination or be required to wear a mask. However, federal contractors nor agencies have received any implementation guidance which has resulted in confusion. Fundamental questions remain unanswered, including what the scope of the mandate is, who will bear the cost of testing, and if contractors working at multiple offices or for multiple agencies will be required to attest at each site. 乌鸦传媒 received notice that it could be as long as two weeks before guidance is issued. The association will update the membership as soon as such guidance is released.
Due in part to 乌鸦传媒鈥檚 advocacy and others, a House fiscal year 2022 funding bill for the U.S. Department of Labor will not include a provision banning the construction industry from utilizing the H-2B seasonal guest worker visa program. The program provides temporary and seasonal workers when domestic workers are unavailable via a lottery process to a wide range of industries, including construction. Given the widespread worker shortages impacting the construction industry, 乌鸦传媒 was very concerned of attempts to target and limit the industry鈥檚 ability to access the program. 乌鸦传媒 will continue to advocate for immigration reforms that helps address construction workforce shortages.
The U.S. Department of Labor announced a final rule to rescind a Trump administration rule, 鈥淛oint Employer Status under the Fair Labor Standards Act鈥 that took effect in March 2020. The rescinded rule included a description of joint employment the Biden administration believes is contrary to statutory language and Congressional intent. The U.S. District Court for the Southern District of New York vacated most of the rule in 2020.
On July 29, the Federal Acquisition Regulation (FAR) Council issued a proposed rule to add and expand Buy American Act requirements on direct federal construction projects (not federal-aid transportation projects). The proposed rule increases the domestic content required to 60% with increases in two years to 70% and then 75% in five years. It permits acceptance of products and construction materials up to six years after publication of the rule which are unavailable at an acceptable cost. It also states that a higher price preference may be identified for critical end products and construction materials. The rule was initiated as a result of President Biden鈥檚 Executive Order on Ensuring the Future Is Made in All of America by All of America鈥檚 Workers. White House staff briefed 乌鸦传媒 on the direction of the proposed rulemaking and 乌鸦传媒 gave feedback to inform the FAR Council鈥檚 process. 乌鸦传媒 will provide feedback on how this rule should not exacerbate continuing construction material shortages and price spikes.
The U.S. Department of Labor has announced a Notice of Proposed Rulemaking to establish standards and procedures to implement and enforce Executive Order 14026, 鈥淚ncreasing the Minimum Wage for Federal Contractors,鈥 signed by President Biden on April 27, 2021.
According to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc., contractors are projecting 2021 construction staff wages to increase an average of 3.23%, as reported by over 300 companies in the 38th edition of the Construction / Construction Management Staff Salary Survey. For pay increase comparison, according to the WorldatWork, across all industries exempt professionals saw 2020 actual increases of 2.9% and they are projecting 2021 increases of 2.9%. For construction WorldatWork reported a 3.4% increase in 2020 and are projecting 3.3% for 2021.
乌鸦传媒鈥檚 National Construction Industry Workforce Summit to Take Place on Oct. 13
Registration is now open for the 2021 Construction HR and Training Professionals Conference to be held October 14-15, 2021, in St. Louis, Missouri.
U.S. Immigration and Customs Enforcement (ICE) recently announced an extension of the flexibilities in rules related to Form I-9 compliance that was initially granted last year. Due to the continued precautions related to COVID-19, the Department of Homeland Security (DHS) will extend this policy until Aug. 31, 2021.
The Pension Benefit Guaranty Corporation (PBGC) has issued an interim final rule implementing the special financial assistance provisions of the American Rescue Plan Act (ARPA) to assist financially troubled multiemployer pension plans. (Click here for more background on ARPA鈥檚 multiemployer pension provisions.)
Negotiators conducting collective bargaining between January and June of this year agreed to raise construction craft workers鈥 wage and fringe benefits by an average of 2.6 percent or $1.57 during the first contract year, according to the Construction Labor Research Council鈥檚 (CLRC) latest Settlements Report. This compares to 2.8 percent or $1.58 for the same period in 2020 and 2.8 percent or $1.62 for all of 2020.