Newsline

If Congress fails to reach a deal to pass legislation to fund the federal government, the government will shut down on Oct. 1.

On Sept. 19, the U.S. House of Representatives passed a nearly two-month long Continuing Resolution that would have kept the government funded at current levels through Nov. 21. That CR passed in a 217-212 vote. The U.S. Senate blocked the measure in a 44-48 vote that fell well short of reaching the 60-vote threshold needed to overcome a Senate filibuster. At this point, it is unclear when Congress will return to Washington.

Due to the potential for a government shutdown, ABC will provide guidance for ABC contractor members in Newsline as we receive it. Currently, limited information on shutdown/contingency plans is available on federal agency websites. We will continue to monitor these websites.

In the meantime, Wiley Law has posted an informative article on Preparing for a Government Shutdown, which we encourage ABC contractors to review. Specifically, the article discusses what government contractors should think about in anticipation of a shutdown. 

Further, if the government shuts down on Oct. 1, no monthly construction economic data will be collected and no reports will be issued until some time after the government reopens. Because ABC will not receive any of the data that the government releases on construction spending, jobs openings, employment, state unemployment or materials prices, these ABC releases will also pause.

Additional Resources:

• How Government Contractors Should Prepare for and Deal With a Shutdown, Sept. 24, Bradley
• Days away from a government shutdown, agencies’ contingency plans still unclear, Sept. 24, Federal News Network
• White House budget office tells agencies to draft mass firing plans ahead of potential shutdown, Sept. 24, Federal News Network

ABC is continuing to monitor this potential shutdown and will provide updates in Newsline. Members are encouraged to reach out to ABC’s government affairs team with any questions or concerns.

Associated Builders and Contractors applauds Rep. Lloyd Smucker, R-Pa., for the reintroduction of the bipartisan H.R. 5494, the Essential Workers for Economic Advancement Act.

In addition to Rep. Smucker, the bill is cosponsored by Reps. Mark Amodei, R-Nev., Juan Ciscomani, R-Ariz., Henry Cuellar, D-Texas, Don Davis, D-N.C., Andy Harris, R-Md., Mike Kelly, R-Pa., Mike Kennedy, R-Utah, Rich McCormick, R-Ga., Maria Elvira Salazar, R-Fla., and Tom Suozzi, D-N.Y.    

The act establishes a targeted, nonfarm, temporary worker visa program with built-in safeguards to protect both employers and employees. The bill ensures that jobs remain open and available to American workers first, while giving businesses a legal, reliable pathway to fill long-standing vacancies. It strengthens border security, incorporates strict oversight to prevent abuse and closes loopholes in the asylum system—all while providing flexibility for industries like construction that are struggling with severe workforce shortages.

On Sept. 17, the U.S. House Committee on Education and Workforce passed the ABC-supported H.R. 2844, Michael Enzi Voluntary Protection Program Act, authored by Rep. Diana Harshbarger, R-Tenn. ABC joined with more than 30 organizations in the Coalition for Workplace Safety to support H.R. 2844.

The bill makes permanent the U.S. Occupational Safety and Health Administration’s Voluntary Protection Program and requires the agency to allocate a minimum of 5% of its annual budget to the program. ABC believes that encouraging collaborative partnerships between the regulated community and OSHA, such as VPPs, is a win-win approach, as they benefit both parties by improving compliance efficacy, reducing financial and administrative costs for both parties and strengthening trust and transparency between the agency and the private sector.

On July 16, Kevin Sell, senior manager of corporate development at ABC member Kwest Group, Perrysburg, Ohio, testified on behalf of ABC before the U.S. House Committee on Education and Workforce Subcommittee on Workforce Protections at the hearing “Safe Workplaces, Stronger Partnerships: The Future of OSHA Compliance Assistance,” in support of support H.R. 2844. Watch the hearing and read Sell’s full testimony.

The bill now awaits consideration on the House floor.

On Sept. 9, the U.S. Department of Defense issued a final rule implementing its Cybersecurity Maturity Model Certification Program into the Defense Federal Acquisition Regulation, requiring federal contractors and subcontractors competing for DOD contracts to demonstrate continued compliance with a range of cybersecurity measures in order to maintain eligibility for performing and winning new federal awards.

This is the last step in a multiyear process to finalize CMMC regulations, which will now be phased in over a three-year implementation period beginning on the final rule’s effective date, Nov. 10.

The new requirements apply to all contractors and subcontractors on DOD projects that process, store or transmit information on contractor servers that meet the standards for Federal Contract Information or Controlled Unclassified Information.

Requirements vary from a self-assessment of compliance with cybersecurity measures to triennial assessment and certification of compliance by third-party contractors or the DOD, depending on the data involved in a specific contract.

On Oct. 11, ABC submitted comments on the August 2024 proposed rule, calling for critical clarifications and improvements to ensure CMMC 2.0 does not unnecessarily burden federal contractors. ABC also engaged over 200 members to submit comments urging the DOD to improve the rule through ABC’s grassroots regulatory efforts. Finally, ABC joined an Oct. 15 comment letter from a coalition of industry groups.

Based on public comments by ABC and others, the final rule removed a burdensome and duplicative requirement to report lapses in information security to the contracting officer within 72 hours, provided a definition of Federal Contract Information and made other clarifications.

For more information on ABC’s engagement on the development of this final rule, as well as compliance resources and member-only webinar recordings, visit ABC’s Cybersecurity Resource Guide.

On Sept. 2, ABC submitted comments in support of the U.S. Department of Labor’s proposed rule to end discrimination and streamline rules for registered apprenticeships, Prohibiting Illegal Discrimination in Registered Apprenticeship Programs.

The proposed rule would reduce regulatory burdens on registered apprenticeship program sponsors related to equal employment opportunity regulations. It streamlines complex affirmative action, recordkeeping and utilization goals by replacing them with a requirement to comply with state and federal nondiscrimination laws.

These burdensome regulations were initially implemented under former President Barack Obama’s administration in 2016, and ABC opposed the changes when they were first proposed.

ABC’s Sept. 2 comments supported the proposed rule, which will ease entry to registered apprenticeship programs by new program sponsors, especially small businesses, while maintaining broad and effective protections for both potential and current apprentices.

ABC continues to support further improvements to RAPs, which are part of ABC’s all-of-the-above approach to workforce development that will be critical to addressing the construction industry’s ongoing labor shortage.

On July 14, the U.S. Department of Labor updated its guidance on penalty and debt collection procedures, outlined in the Penalties and Debt Collection section of OSHA’s Field Operations Manual, to help minimize the burden on small businesses and increase prompt hazard abatement. The new policy expands penalty reductions for small employers, making it easier for small businesses to invest resources in compliance and hazard abatement.

As the DOL news release states, “All employers should be offered the opportunity to comply with regulations that help maintain a safe working environment. Small employers who are working in good faith to comply with complex federal laws should not face the same penalties as large employers with abundant resources. By lowering penalties on small employers, we are supporting the entrepreneurs that drive our economy and giving them the tools they need to keep our workers safe and healthy on the job while keeping them accountable.”

The new guidance includes:

• A penalty reduction of 70%, previously for businesses of 10 or fewer employees, expanded to include businesses of up to 25.
• New guidelines for a 15% penalty reduction for employers who immediately take steps to address or correct a hazard.
• A penalty reduction of 20% for employers who have never been inspected by federal OSHA or an OSHA State Plan, as well as employers who have been inspected in the previous five years and had no serious, willful or failure-to-abate violations.

The new polices are effective immediately. Penalties issued before July 14, 2025, will remain under the previous penalty structure. Open investigations in which penalties have not yet been issued are covered by the new guidance.

Read ABC general counsel Littler’s analysis to learn more.

On July 27, the U.S. Department of Labor announced programs from six agencies designed to help the regulated community voluntarily assess and improve compliance with federal labor laws. The programs are aimed at strengthening worker protections while reducing the risk of investigations or penalties.

According to the DOL’s news release, “These programs are designed to give employers, unions, and benefit plan officials the tools they need to correct potential violations proactively. By empowering the regulated community with clarity and collaboration, we are continuing to fulfill the Department of Labor’s mission to put both workers and employers first.”

The initiatives span several DOL agencies, including:

• Occupational Safety and Health Administration: OSHA is expanding its Voluntary Protection Programs to meet businesses where they are on their safety journey to help develop strong safety programs and lower injury rates, allowing them to undergo regular self-evaluations and avoid routine inspections. OSHA is increasing its efforts to support voluntary compliance through its On-Site Consultation Program, which offers no-cost and confidential safety and health services to small and medium-sized businesses. 
• Wage and Hour Division: The Wage and Hour Division is restarting the Payroll Audit Independent Determination program to enable employers to self-identify and resolve minimum wage, overtime and leave violations under the Fair Labor Standards Act and Family and Medical Leave Act. Read ABC general counsel Littler’s analysis of the PAID program.
• Veterans’ Employment and Training Service: VETS has launched a new program, SALUTE: Support and Assistance for Leaders in USERRA Training and Employment, to help employers proactively review their policies and practices under the Uniformed Services Employment and Reemployment Rights Act. The program aims to foster good-faith compliance and ensure the employment rights of service members are respected.

Learn more about the programs and access resources at dol.gov/selfaudit.

On July 3, ABC sent a letter in support of H.R.3898, the Promoting Efficient Review for Modern Infrastructure Today Act. The letter urges the U.S. House of Representatives to advance the legislation, providing much-needed, commonsense reforms to the Clean Water Act.

Among the many essential provisions in the PERMIT Act, ABC particularly supports:

• Clarifying the Definition of WOTUS: Explicitly excluding groundwater and ephemerals that flow in direct response to precipitation from the definition of Waters of the United States reduces expansive interpretations of WOTUS and limitations on construction taking place on such land.
• Expediting Jurisdictional Determinations: Directing the U.S. Army Corps of Engineers to expedite procedures and augment personnel and resources will help eliminate the backlog of jurisdictional determinations and Section 404 applications.
• Extending and Streamlining the Section 404 Dredge and Fill Permit Process: Extending nationwide general permit times from five to 10 years may enable contractors to complete projects within the permitted time frame. Further, allowing the use of environmental assessments for the reissuance of permits will streamline permitting for already approved projects.
• Extending NPDES Permit Terms: Extending the National Pollutant Discharge Elimination System permit time from five to 10 years provides longer validity for construction permits.
• Ensuring Permitted Projects Move Forward: Establishing that the U.S. Environmental Protection Agency’s authority to deny or restrict the use of a defined space as a disposal site is limited to the period between a completed application and permit issuance will reduce the risk of late-stage permit cancellation.

ABC also signed onto the Waters Advocacy Coalition’s letter to the House Rules Committee, urging the committee and House to advance the legislation, delivering clarity and certainty for landowners and the regulated community.

 

Since Inauguration Day, when President Donald Trump signed a series of executive orders related to immigration, consequential changes to the nation’s immigration landscape have continued to emerge from the White House.

ABC recommends every contractor take all precautions in the hiring process to verify each potential employee is eligible to work legally in the United States, including using the E-Verify system.

ABC’s goal is to work with the administration and Congress to create a market-based merit visa system that allows people who want to contribute to society and work legally in the U.S. construction industry to do so. There is no place in our country for lawbreakers here to cause harm, and ABC opposes violence, coercion and intimidation of every kind. ABC supports the portion of the administration’s immigration strategy that focuses on lawbreakers.

Following the laws of supply and demand, mass deportations could constrain the availability of labor, which could stifle the ability of the industry to build the construction projects demanded by the marketplace. In other words, the supply of labor may not meet the demand, which could drive up costs, or consumer demand would adjust. And if the worker supply is constrained, employers would most likely adjust their employee value proposition to enhance their position in the marketplace. This is an important reason why we need a market-based merit visa system.

Read additional resources on recent immigration actions provided by ABC general counsel Littler Mendelson:

• An ICE Q&A With Answers to Your Top 25 Questions
• An Immigration Compliance and Enforcement Checklist That Outlines Key Areas That May Require Your Attention and Action
• PowerPoint Presentation: Learn About President Trump’s Actions on Immigration and DEI and How To Be Proactive in Compliance Efforts
• DHS Issues Notices of Termination for the CHNV Parole Program.
• US Supreme Court Allows Recission of Temporary Protected Status for Venezuelans.
• Trump Administration Day 1 Immigration Agenda: How Are Employers Impacted?
• The First 100 Days: Increased Immigration Compliance and Enforcement (Podcast)

Temporary Protected Status

ABC believes in protections for TPS recipients, who have been members of the construction industry workforce for years. Currently, it is estimated that between 70,000 and 100,000 individuals work in the construction industry through both TPS and DACA.

Afghanistan

Please visit the TPS website to read the status alert.

Haiti

Please visit the TPS website to read the status alert.

Honduras

Please visit the TPS website to read the status alert.

Nicaragua

Please visit the TPS website to read the status alert.

Venezuela

Please visit the TPS website to read the status alert. To learn more, read an analysis provided by ABC general counsel Littler Mendelson, US Supreme Court Allows Recission of Temporary Protected Status for Venezuelans.

ABC members can visit the TPS webpage for status alerts.

CHNV Parole Program

On June 12, the U.S. Department of Homeland Security began sending termination notices, by email, to approximately 530,000 individuals who entered the United States under a recent parole program for Cubans, Haitians, Nicaraguans and Venezuelans. These parolees are being informed that their parole status and work authorization is being revoked immediately. To learn more, read an analysis provided by ABC general counsel Littler Mendelson, DHS Issues Notices of Termination for the CHNV Parole Program.

For further information, visit DHS’s website.

ABC members are encouraged to reach out to counsel with any questions regarding the recent immigration actions.

Please continue to monitor new developments on ABC’s Immigration Update and Employer Resources webpage

On July 1, U.S. Department of Labor Secretary Lori Chavez-DeRemer announced deregulatory efforts aimed at reversing costly and burdensome rules and spurring job creation and economic opportunity for American workers and businesses. 

“The Department of Labor’s actions are unprecedented, slashing more than 60 obsolete and burdensome regulations impacting American workers,” said Deputy Secretary of Labor Keith Sonderling. “While the previous administration prioritized expanding the size of government over job and wage growth, President Trump is focused on unleashing the greatest economic comeback in American history. We are proud to stand with this Administration to deliver economic security for working families by eliminating job-killing and inflation-driving red tape.”

President Donald Trump’s executive order, Unleashing Prosperity through Deregulation, directed federal agencies to eliminate 10 existing regulations for every new rule.

ABC is currently reviewing the below DOL deregulatory actions and will provide more details in ABC’s Regulatory Roundup:

Office of the Secretary

• Direct Final Rule:
  • Rescission of Nondiscrimination and Equal-Opportunity Provisions of the Workforce Investment Act. The DOL is rescinding its regulations implementing the Workforce Investment Act of 1998 containing the nondiscrimination and equal-opportunity provisions of WIA. In 2014, Congress passed the Workforce Innovation and Opportunity Act, which repealed WIA and required the secretary of labor to transition any authority under WIA to the system created by the WIOA. The DOL is taking this action to remove regulations for a program that is no longer operative. The final rule is effective Sept. 2 unless significant adverse comments are received by July 31.

Employment and Training Administration

• Proposed Rule:
  • Prohibiting Illegal Discrimination in Registered Apprenticeship Programs. The DOL is issuing this proposed rule to remove undue regulatory burdens on registered apprenticeship program sponsors. The proposal would rescind certain regulatory provisions that the agency believes are unlawful. It also includes conforming, technical changes to the DOL’s regulation that addresses Labor Standards for the Registration of Apprenticeship Programs. This proposed rule would streamline and simplify sponsors' obligations, while maintaining broad and effective nondiscrimination protections for apprentices and those seeking entry into apprenticeship programs. The deadline for comments is Sept. 2.

Occupational Safety and Health Administration

• Final Rule:
  • Construction Standards: Advisory Committee on Construction Safety and Health. This final rule revokes 29 CFR 1911.10, which required the assistant secretary for Occupational Safety and Health, who heads OSHA, to consult with the Advisory Committee on Construction Safety and Health in the formulation of rules to promulgate, modify or revoke standards applicable to construction work, and 29 CFR 1912.3, the general OSHA regulations governing ACCSH. This final rule also makes corresponding changes to 29 CFR 1911.11, 29 CFR 1911.15, 29 CFR 1912.8 and 29 CFR 1912.9. OSHA is revoking 29 CFR 1911.10 and 29 CFR 1912.3 because these regulations impose requirements on the assistant secretary that are more burdensome than those mandated by statute, and compliance with these regulations would needlessly delay the secretary of labor’s regulatory agenda. According to the DOL, these changes will ensure that ACCSH is able to advise the secretary on potential regulatory actions without adversely affecting the agency’s regulatory timeline. The final rule went into effect July 1.

Proposed Rules:

• • Amending the Medical Evaluation Requirements in the Respiratory Protection Standard for Certain Types of Respirators. OSHA is proposing to remove some medical evaluation requirements in the Respiratory Protection Rule for certain types of respirators. This proposed change would only impact filtering facepiece respirators and loose-fitting powered air-purifying respirators. The deadline for comments is Sept. 2.
  • Occupational Exposure to COVID-19 in Healthcare Settings. OSHA is proposing to remove OSHA’s COVID-19 Emergency Temporary Standard and its associated recordkeeping and reporting provisions from the Code of Federal Regulations. The deadline for comments is Sept. 2.
  • Construction Illumination. The intent of this proposed rule is to remove from the Code of Federal Regulations OSHA's Construction Illumination Standard, 29 CFR 1926.26 and 1926.56. OSHA's Illumination Standard, 29 CFR 1926.26, requires that construction areas, aisles, stairs, ramps, runways, corridors, offices, shops and storage areas where work is in progress are lighted with either natural or artificial illumination. The minimum illumination requirements for work areas are contained in Subpart D, 29 CFR 1926.56. OSHA proposes to remove the Construction Illumination Standard because it has determined that the standard is not reasonably necessary or appropriate under section 3(8) of the OSH Act, 29 U.S.C. 652, because it does not reduce a significant risk to workers. The deadline for comments is Sept. 2.
  • Asbestos. This proposed rule revises some substance-specific respirator requirements to allow different types of respirators to be used under OSHA's asbestos standards and better aligns these standards with OSHA's Respiratory Protection standard. The deadline for comments is Sept. 2.
  • Lead. This proposed rule revises some substance-specific respirator requirements to allow different types of respirators to be used under OSHA’s lead standards and better aligns the standards with OSHA's Respiratory Protection standard. The deadline for comments is Sept. 2.
  • Vinyl Chloride. This proposed rule removes language in OSHA’s Vinyl Chloride standard that is duplicative with OSHA’s Respiratory Protection standard. The deadline for comments is Sept. 2.

Withdrawal of Proposed Rule:

• Occupational Injury and Illness Recording and Reporting Requirements; Withdrawal. OSHA is withdrawing the proposal to amend the OSHA 300 Log by adding a column that employers would use to record work-related musculoskeletal disorders. Withdrawal of the proposal does not change any employer's obligation to complete and retain occupational injury and illness records under OSHA's regulations. Withdrawal of the proposal also does not change the recording criteria or definitions used for these records. The withdrawal went into effect on July 1.

Office of Labor-Management Standards

Proposed Rule:

• Filing Thresholds for Forms LM-2, LM-3, and LM-4 Labor Organization Annual Reports. This proposed rule revises the filing thresholds in 29 CFR 403.4(a) for the Forms LM-2, LM-3 and LM-4 Labor Organization Annual Reports. In this proposed rule, the DOL proposes to increase each filing threshold to higher values: labor organizations with $450,000 or more in annual receipts must file Form LM-2; those with less than $450,000 may choose to file Form LM-3; and those with less than $25,000 may choose to file Form LM-4. According to the DOL, these increases are necessary to reflect economic changes and reduce unnecessary reporting burdens on labor organizations whose total receipts, prior to adjusting for inflation, should not necessitate greater filing requirements. The deadline for comments is July 31.

Please continue to monitor Newsline and ABC’s Regulatory Roundup for future updates on regulatory actions.