Construction employment slipped by 3,000 jobs in December, while average hourly earnings accelerated, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that recent construction spending numbers and their own survey of members suggest demand for construction remains strong, suggesting that the lack of hiring may be due to a shortage of available workers. “This report presents mixed signals about the state of the construction industry,” said Ken Simonson, the association's chief economist. “Although a dip in employment might normally be a sign of declining demand, in this case the industry is raising wages and taking other steps to attract and retain workers. Construction spending in November hit a 10-year high, with one-month and year-over-year increases in all major segments. Looking ahead, contractors say they expect more work in every category in 2017 than in 2016.” Read full news release here.
In response to a request for comments from the U.S. Department of Labor’s Wage and Hour Division, on Dec. 19, ż notified the agency that improvements are needed to the way it collects wage data from construction contractors. The Wage and Hour Division is responsible for setting the prevailing wage rate for federal and federally assisted construction projects covered by the Davis-Bacon Act and currently uses wage surveys to collect wage data from contractors. The agency’s request for comments is a required part of the regulatory process as the agency seeks to extend the use of its current wage survey form (Form WD-10), which expires in 2017.
The U.S. District Court for the District of Massachusetts held in September that the shareholders and officers of a double-breasted (a.k.a. “dual-shop”) construction company can be indicted and could go to prison if the government proves they fraudulently misrepresented that their business was a lawful double-breasted operation with two separate companies. According to the indictment, the defendants, who failed to maintain the separateness of their two corporations, reported to the Massachusetts Laborers Benefit Funds (MLBF) the hours worked by employees of their union company but not their non-union company, and, based on these false reports, failed to make payments due to the MLBF.
The U.S. Equal Employment Opportunity Commission (EEOC) recently issued updated enforcement guidance on national origin discrimination. The new guidance replaces its 2002 compliance manual section on that subject.
The U.S. Citizenship and Immigration Services (USCIS) recently published a revised version of the Employment Eligibility Verification Form (Form I-9). The new form, dated 11/14/2016, will be required for use by all employers beginning on January 22, 2017. Until then, employers may continue to use the version dated 3/8/2013 or the new version.
On November 22, a federal judge issued a nationwide injunction against the U.S. Department of Labor’s (DOL) overtime rule, which was scheduled to take effect on December 1, 2016. As a result of this court order, implementation of the rule is effectively halted. However, the injunction is a temporary measure that suspends the regulation until litigation comes to a close. DOL has said that it is currently “considering all of [its] legal options.” At this time, it is unclear if or when the rule will take effect.
A federal district court on November 16 issued a nationwide permanent injunction preventing implementation of the U.S. Department of Labor's (DOL) “persuader rule.” The ruling is good news for employers and for the associations, attorneys, and consultants that advise them on labor matters.
A contractor signatory to an old “me-too” agreement with an “evergreen” clause could be responsible for benefit and other fund contributions required by a later multiemployer collective bargaining agreement (a “CBA”) even though the contractor was not a member of the multiemployer group and did not grant continuous bargaining rights to the group, the U.S. Court of Appeals for the Third Circuit (DE, NJ, PA) has held.
Earlier this week, the Equal Employment Opportunity Commission (EEOC) announced a new series of enforcement priorities on which it will focus over the next five years. By releasing its second-ever Strategic Enforcement Plan, the EEOC provided a clear message to employers regarding the areas that will occupy a considerable amount of attention when it comes to investigations, enforcement actions, and litigation from 2017 to 2021.
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