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On May 18, the U.S. Department of Labor’s Wage and Hour Division published a Field Assistance Bulletin on Enforcement of Protections for Employees to Pump Breast Milk at Work, which is intended to provide enforcement support and guidance to field staff regarding the application and requirements of the Providing Urgent Maternal Protections for Nursing Mothers Act, or PUMP Act.
On Dec. 29, 2022, President Joe Biden signed the Consolidated Appropriations Act, 2023, into law, which includes the PUMP Act. According to the DOL website, under the PUMP Act, most nursing employees have the right to reasonable break time and a place, other than a bathroom, that is shielded from view to express breast milk while at work. This right is available for up to one year after the child’s birth.
In April 2023, the DOL issued an updated Fair Labor Standards Act poster that reflects current pump at work requirements. This poster may be used to meet the FLSA posting requirement and is available for download at no cost. Employers should ensure that they are posting the current version of the poster.
Additional resources:
The Mackinac Center for Public Policy recently published a study evaluating the effects of state prevailing wage policy on road construction and maintenance costs. Prevailing wage requirements undermine nonunion contractors’ competitiveness for public works contracts by standardizing the payment of union wage rates via methodologically defective surveys.
Authored by Michael J. Hicks, the George and Francis Ball Distinguished Professor of Economics at Ball State University, the May 2023 study associates state prevailing wage laws with significant road construction and maintenance cost increases and no significant effect on the labor share of those costs. The findings on road spending add to the extensive literature detailing prevailing wage cost increases, primarily on school construction.
Using public data on state road construction spending in 48 states from 2004 to 2019, Hicks developed a model that demonstrates an 8.9% to 14.3% cost increase on projects where prevailing wage applied. Secondary research on road building in six states that have repealed prevailing wage laws since 2014 showed an average cost reduction of 5.6%. Because the secondary prevailing wage repeal model necessarily employed a smaller sample of states, its results do not constitute a comprehensive cost estimate given significant annual variation in road spending.
The Mackinac Center study confirms overwhelming evidence from academic and government investigators of the wasteful and exclusionary impacts of prevailing wage requirements. A 1999 Mackinac study found a federal court’s suspension of Michigan’s prevailing wage law created at least 11,000 additional construction jobs and $275 million in taxpayer savings between 1994 and 1997 alone.
A 2017 Mackinac study found restoration of Michigan’s prevailing wage requirements would transfer about $230 million annually from Michigan taxpayers to unionized workers, and confirmed existing findings from diverse investigators that prevailing wage requirements increase public construction costs by up to 15%.
ABC will continue to vigorously oppose federal, state and local legislative and regulatory prevailing wage expansion, including Michigan Gov. Gretchen Whitmer’s March 24 signature of H.B. 4007, which codifies prevailing wage for state contracting in contravention of a 2018 public referendum.
On May 12, the U.S. Department of the Treasury and Internal Revenue Service released additional guidance on the Inflation Reduction Act’s domestic content bonus tax credits, which are in effect for all taxable years ending after May 12, 2023. The guidance may be relied upon by taxpayers for all construction that begins prior to the effective date of forthcoming proposed regulations.
The ABC-opposed Inflation Reduction Act was signed into law on Aug. 16, 2022, and provides over $270 billion in tax credits for the construction of solar, wind, hydrogen, carbon sequestration, electric vehicle charging stations and other clean energy projects. Specifically, Subtitle D-Energy Security of the IRA grants developers/taxpayers a bonus tax credit five times greater than a baseline tax credit of 6% conditioned on requirements that project contractors meet prevailing wage and government-registered apprenticeship program utilization requirements outlined in the legislation and IRS guidance.
The May 12 guidance states that taxpayers may receive another 10% tax credit increase for meeting domestic content requirements. All steel and iron on a project must be 100% produced in the United States to meet this requirement. Additionally, between 40% to 55%, depending on project type and the year construction begins, of the total cost of other components and subcomponents used on the project must be attributable to components that are mined, produced or manufactured in the United States in order to receive this bonus. The IRS previously requested comments on these requirements, and ABC provided feedback regarding industry concerns about supply chain issues and cost increases that may be caused by these domestic content requirements in comments to Treasury and the IRS.
For more information and resources on compliance with the IRA’s requirements, please visit ABC’s new website, abc.org/ira.
If you have questions that are not answered on the website or in Treasury/IRS guidance, ABC is here to help. Please email [email protected] and ABC subject matter experts will work to answer your question or reach out to Treasury/IRA for clarification.
On May 10, the U.S. Department of Labor’s Advisory Committee on Apprenticeship voted to approve recommendations to the DOL for potential revisions to the National Apprenticeship System. The ACA is an advisory body comprised of representatives from industries, labor organizations and other members of the public that provides advice to the agency on government-registered apprenticeship programs. These recommendations will inform the DOL’s upcoming proposed rule revising the GRAP system, currently targeted for June 2023.
Included in the recommendations are suggestions for the DOL to establish a new “Quality Seal” program for GRAPs. Programs would be required to meet certain wage requirements, completion rates and apprentice-to-journeyworker ratios in order to receive the Quality Seal and accompanying preferential treatment for federal funding of GRAPs. Employer participants in Quality Seal GRAPs would receive preferential treatment in the bidding and awarding of federal and federally assisted construction projects. Additionally, some members of the ACA recommended that all GRAPs should be required to guarantee graduates such wages deemed “family-sustaining” by the DOL.
An ABC-led coalition of construction and business associations submitted a letter to the ACA expressing concerns that these proposals, while perhaps well-intentioned, may ultimately result in fewer apprentices being upskilled by making GRAPs less attractive to employers and employee participants. Specifically, the letter urged the committee to reject recommendations that would discourage providers and employers from utilizing GRAPs and instead ensure flexibility and ease of access.
The ACA’s recommendations were ultimately approved, although there was disagreement among ACA members. Bloomberg News reported that:
“Members of the advisory panel disagreed on whether to attach the “living wage” provisions to the final recommendations, with some representatives expressing concern that they wouldn’t get enough buy-in from employers.
“Initially the panel suggested using ‘MIT’s living wage calculator’ as the standard rate apprenticeship programs should pay in order to receive the special quality seal.
“Ultimately, the committee voted to define ‘living wage’ as ‘200% of the federal poverty level for a family of three, adjusted by a geographic cost-of-living differential for regions where the cost of living exceeds the federal average.’”
Stakeholders who want to provide more input on the ACA’s Quality Seal Program and living wage recommendations should consider participating in the public comment period that will accompany the DOL’s anticipated apprenticeship rulemaking, should those ACA recommendations be adopted in the proposed rule.
ABC continues to support GRAPs as one of many solutions that are part of ABC’s all-of-the-above solution to workforce development. However, recent data suggests that it would take 12 years for GRAPs to educate the more than half a million workers needed by the construction industry in 2023 alone. ABC will continue to champion inclusive workforce development policies that will avoid costly delays to critical infrastructure, clean energy and manufacturing projects.
The ABC-opposed National Apprenticeship Act introduced in Congress on April 25 would further entrench the rigid GRAP system, failing to address critical workforce needs of our nation’s construction industry and substantially restricting apprenticeship opportunities currently serving thousands of contractors. ABC instead supports the Training America’s Workforce Act (S. 1213), the Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1477/S. 722) and the Jumpstart Our Businesses by Supporting Students Act (H.R. 793/S. 161).
On May 9, 2023, President Joe Biden signed an executive order, Moving Beyond COVID-19 Vaccination Requirements for Federal Workers, that revoked executive orders 14042 and 14043 effective 12:01 a.m. ET on May 12, 2023. The Safer Federal Workforce has made the following updates on its website with related guidance for contractors as of May 12, 2023:
Background:
On May 1, 2023, President Joe Biden’s administration announced its intent to end certain COVID-19 vaccination requirements, including the mandate on federal contractors.
The Biden administration had already stopped enforcing these requirements due to a successful legal challenge led by ABC and seven states. On Aug. 26, 2022 the U.S. Court of Appeals for the 11th Circuit issued a decision narrowing the December 2021 nationwide preliminary injunction granted by the Georgia District Court to only ABC members who bid on federal contracts and the state plaintiffs in the case. However, the Biden administration later announced it would continue its pause on enforcement nationwide.
The 2021 injunction was a direct result of ABC intervening as the lone business group challenging the federal contractor vaccine mandate, along with the seven plaintiff state governments.
Chuck Goodrich, president and CEO of Gaylor Electric and state representative for Indiana House District 29, announced his candidacy for U.S. Congress in Indiana’s 5th Congressional District. Goodrich served as the 2017 national chair of the ABC Board of Directors.
“There is a need for people in D.C. who understand what it takes to run and build a business, who have met the pressures of meeting weekly payrolls, dealt with rising health care costs, lived with workforce development challenges, like immigration and inflation, and have first-hand experience on the cumbersome impact of regulations and taxes. I understand these challenges, and I want to bring my perspective, a conservative perspective, to the conversation,” said Goodrich.
Based in Indianapolis, Gaylor Electric, an ABC Top Performer, is one of the largest merit-shop electrical firms in the country with 11 offices across the country. Goodrich began his career with Gaylor Electric in 1991 as an intern and subsequently moved up the ranks to a variety of key leadership positions within the company, ultimately being named president in November 2014. During his tenure, Gaylor Electric has created more than 1,000 jobs and won numerous national awards. As an Indiana state representative, Goodrich was first elected to serve the constituents of House District 29 in 2018.
The 5th District is currently represented by Republican Rep. Victoria Spartz, who announced her decision to not seek reelection in February. The primary election for the district will be held on May 7, 2024, and two other candidates have also announced for bid for the Republican nomination, Madison County Prosecutor Rodney Cummings and Mathew Peiffer. The seat is ranked as “solid Republican” by most prominent election trackers.
To learn more about Chuck Goodrich’s race please visit his website: www.gowithchuckgoodrich.com.
On May 1, 2023, President Joe Biden’s administration announced its intent to end certain COVID-19 vaccination requirements, including the mandate on federal contractors. According to the announcement, President Biden will soon issue an executive order rescinding vaccine requirements and COVID-19 safety protocols for federal contractors, effective at 12:01 a.m. on May 12.
The Biden administration had already stopped enforcing these requirements due to a successful legal challenge led by ABC and seven states. On Aug. 26, 2022 the U.S. Court of Appeals for the 11th Circuit issued a decision narrowing the December 2021 nationwide preliminary injunction granted by the Georgia District Court to only ABC members who bid on federal contracts and the state plaintiffs in the case. However, the Biden administration later announced it would continue its pause on enforcement nationwide. The 2021 injunction was a direct result of ABC intervening as the lone business group challenging the federal contractor vaccine mandate, along with the seven plaintiff state governments.
May 12, 2023, Update:
Intentional, purposeful, two-way communication is vital to a successful workday. Daily communication builds resilient relationships and enables a group to accomplish mission-driven tasks with a high degree of safety, quality and effectiveness. Daily toolbox talks and consistent start-up inspections create the environment where both communication and safety coexist successfully.
Daily Toolbox Talks and Start-Up Inspections
Toolbox talks are important to keep safety foremost and engage a crew. Traditionally, toolbox talks were performed monthly and took about 15 minutes. Currently, many companies hold weekly toolbox talks that are seven to 10 minutes in length.
But new data shows the effectiveness of daily toolbox talks, which are trending among contractors. Some companies accomplish this through the use of apps that include a short 90- to 180-second video followed by a three-question quiz. At the end, the supervisors add any company-specific policies or answer questions.
Another best practice is to include a start-up inspection at the beginning of the day. This inspection includes PPE, tools, equipment and ensuring all necessary materials are available and ready for use. If a material (like a gasket or fitting) or tool is missing, corrective action or a change of plans can be made early to prevent any safety issues.
Task-Specific Safety Processes
The ABC STEP Safety Management System is designed to help you strengthen safety culture through several methods. Its task-specific safety process comes in many forms—Activity Hazard Analysis, Job Safety Analysis, Pre-Task-Plan and a dozen more.
All have at least a three-column, delineated plan of action. The first column is usually a list of several small steps, and the next identifies the hazard(s) associated with each step. The last column documents the action taken to prevent the hazard(s) from injuring people.
While these analyses and plans are designed to be updated daily, if conditions change, the plan will need to be adjusted more frequently. In the distant past, these documents were written by a safety professional and shared with a crew. Now, many crews have outlines or an app and complete the process together, giving everyone a voice in shaping the workday and a role to fulfill in terms of safety.
Communication Builds Trust
Meaningful conversations, group input and a daily learning moment do more than keep the team safe. When utilized properly, these actions build interdependent relationships, incorporating connectivity, belonging and a sense of common purpose, which ultimately drive a stronger safety culture.
Looking for help building your safety program?
Discover resources available through ABC’s STEP Safety Management System and other health and safety topics at abc.org/safety.
For more information or assistance, please reach out to Joe Xavier or Aaron Braun.
On May 1, the U.S. Department of Labor’s Occupational Safety and Health Administration announced a National Emphasis Program to prevent falls for people working at heights in all industries.
According to the OSHA release, “The emphasis program will focus on reducing fall-related injuries and fatalities for people working at heights in all industries. The targeted enforcement program is based on historical U.S. Bureau of Labor Statistics data and OSHA enforcement history. BLS data shows that of the 5,190 fatal workplace injuries in 2021, 680 were associated with falls from elevations, about 13% of all deaths.
“The program establishes guidance for locating and inspecting fall hazards and allows OSHA compliance safety and health officers to open inspections whenever they observe someone working at heights. An outreach component of the program will focus on educating employers about effective ways to keep their workers safe. If a compliance officer determines an inspection is not necessary after entering a worksite and observing work activities, they will provide outreach on fall protection and leave the site,” according to the release.
"Fall protection is essential on construction jobsites as falls are a leading cause of injuries and they are completely preventable. OSHA is utilizing all resources to combat fatalities caused by falls,” said Joe Xavier, ABC senior director of health and safety, in a statement published in Engineering News-Record’s coverage of the announcement.
ABC encourages the national fall protection program's outreach, partnerships and alliances.
Learn more about federally required fall protection here.
The U.S. Department of Labor’s Office of Federal Contract Compliance Programs has revised the Voluntary Self-Identification of Disability Form (CC-305) with updated preferred language and examples of disabilities. Federal contractors use this self-identification information to support required affirmative action programs.
The revisions include additional disabilities; more descriptive and inclusive examples of disabilities; and simplified and broadened response options to self-identification questions. Federal contractors and subcontractors have until July 25 to implement the new form into their applicant and employee systems and processes.
For more guidance on implementing the form, please read OFCCP’s Frequently Asked Questions.
For more information on Section 503 requirements, visit the OFCCP Section 503 information page, or contact the OFCCP Help Desk at (800) 397-6251 or online.
To learn more about the revised form, read ABC general counsel Littler Mendelson’s article.