Íæż½ã½ã

Íæż½ã½ã recently met with the U.S. Department of Labor’s Wage and Hour Division (WHD) acting administrator, Nancy Leppink, who is responsible for enforcing such laws as the Fair Labor Standards Act, the Family and Medical Leave Act, the Davis-Bacon Act (DBA), and other laws that govern how wages are paid to workers.  During the meeting, Íæż½ã½ã explained that its members want to be in compliance with the law and asked Ms. Leppink for additional guidance and in-depth training for the often complicated and confusing wage laws, including the DBA.  As a result, the agency informed Íæż½ã½ã, in a follow-up letter, of a new resource to assist contractors:  a video of WHD’s Prevailing Wage Conference.

On April 26, 2011, the Office of Federal Contract Compliance Programs (OFCCP) proposed significant revisions of the regulations governing affirmative action requirements for direct federal contractors and subcontractors with respect to protected veterans.  Íæż½ã½ã requested an extension of the 60-day comment period.  While OFCCP did not fully grant Íæż½ã½ã’s request, OFCCP did grant a 14-day extension.The proposed rule would impact all stages of federal contracting and subcontracting for construction employers.  Specifically, the proposed rule would require covered employers to:calculate and establish numerical hiring benchmarks using data contractors would have to research for the calculation;extend an offer to self-identify as a protected veteran pre-hire in addition to the current post-hire requirements;track and maintain several new data points on veteran referrals, applicants, and hires, and maintain the data for five years;sign written linkage agreements with a minimum of three veteran sources, per establishment and perform a self-critical analysis of the effectives of each;list vacant positions with employment services in the manner and format they require;create a file for every known veteran applicant and employee, to include every opportunity for which the veteran was considered (vacancy, training and promotion), and a statement outlining the reason for rejection if the veteran was not selected;conduct annual meeting and training programs for all employees and management; andperform and document annual reviews of job descriptions listing the physical and mental job qualifications for all job openings and provide an explanation regarding why each requirement is related to the job.To read more about the proposed rule, click here.Given the importance of the proposal, Íæż½ã½ã hosted a conference call with its HR Forum Federal Subforum to discuss the implications of the proposed rule.  As a result, Íæż½ã½ã felt it was necessary to submit a letter to OFCCP requesting an additional 60 days to more thoroughly review and comment on the newly proposed requirements – particularly the reporting and recordkeeping requirements.While Íæż½ã½ã is continuing to work on the comments that will be submitted on behalf of the industry, members are also encouraged to participate in the regulatory process by submitting comments on behalf of each company.  Íæż½ã½ã members can ask OFCCP to exempt the construction industry from the requirements of this proposed rule or, at minimum, simplify the requirements by sending a letter to OFCCP through the Íæż½ã½ã Legislative Action Center (LAC).  Members can submit a copy of the pre-composed letter or make changes to the letter identifying the specific impact this rule would have on the company.  Letters will be automatically sent to OFCCP through the LAC before the new submission deadline of July 11, 2011.

It's no secret that enforcement has increased and many companies have faced recent audits, resulting in fines and penalties for the first time, but for most, debarment has only been a mere threat for non-compliance until now.  Previously, Department of Labor (DOL) officials explained that debarment would be more widely sought as punishment for federal contractors who fail to comply with the law because in their opinion, contractors do not take fines seriously and consider fines as only a cost of doing business.

On Tuesday, June 14, the House Subcommittee on Health, Employment, Labor and Pensions held a hearing to review the state of private pension plans and the challenges facing plan sponsors, workers and retirees.   The challenges facing both single and multiemployer pension programs was not directly discussed in the hearing, however, this action indicates that Congress does realize that there are still challenges facing this retirement vehicle. 

On June 3, Íæż½ã½ã’s general counsel testified in Congress in support of H.R. 735, the Government Neutrality in Contracting Act.

The Financial Accounting Standards Board (FASB) appears to be heading in the right direction in its reconsideration of its proposal to update accounting standards concerning disclosure of an employer’s participation in a multiemployer plan.  

Attention remains focused on the complaint by the National Labor Relations Board (NLRB) with regard to Boeing’s South Carolina Dreamliner plant. The complaint claims that Boeing violated federal labor law by building this plant in retaliation against past strikes by the unions.  Boeing disputes this claim.

The National Labor Relations Board (NLRB) has established a new standard for addressing the access rights of off-duty employees of an onsite contractor to the premises of the property owner for the purpose of distributing union-supporting handbills.  While the case in which the new standard was issued involved a service contractor rather than a construction contractor, it could have ramifications in the construction industry.

The Obama Administration has focused heavily on the enforcement of employment laws by government agencies across the board, and now, new measures are being taken to allow various agencies and sub-agencies to collaborate on their independent enforcement directives.  Employers are encouraged to prepare now or possibly face tough penalties.

The Office of Federal Contractor Compliance Programs (OFCCP), the agency that administers various affirmative action laws applicable to federal contractors, published proposed regulations on April 26, 2011, that, if implemented, will significantly increase contractors' obligations as they relate to protected veterans.