On May 9, the White House held a summit on protecting Americans from surprise medical billing, which occurs when insured patients incur unexpected charges after receiving treatment from out-of-network health care providers. On April 2, ABC joined a broad-based coalition in a letter to the U.S. House Subcommittee on Health, Employment, Labor and Pensions to hold a hearing to examine surprise billing. ABC has pushed for legislation that would ensure out-of-network costs are disclosed to patients beforehand to protect patients from these burdensome costs.

ABC is pleased that Congress and the White House are committed to work on a bipartisan solution to address this issue and will continue to update members on any progress.

In light of a recent decision by the U.S. District Court for the District of Columbia, certain employers will be required for the first time to submit detailed data on employee compensation and hours worked (or Component-2 data) to the Equal Employment Opportunity Commission as part of their annual EEO-1 form submission by Sept. 30, 2019. The court had initially ordered the collection of Component-2 data for calendar year 2018 on April 25. On May 2, in order to comply with the court’s order to collect two years of pay data, the EEOC announced that EEO–1 form filers should also begin preparing to submit data for calendar year 2017.

The EEOC expects to begin collecting Component-2 data for calendar years 2017 and 2018 beginning in mid-July 2019 and will notify filers of the precise date the survey will open as soon as it is available. Covered employers should be aware that Component-1 data is still due by May 31, 2019.  

On May 3, the U.S. Department of Justice appealed the court’s recent decision ordering the EEOC to begin collecting Component-2 pay data. If the Justice Department appeal succeeds, the district court’s order, as well as the EEOC’s requirement, could be overturned prior to Sept. 30.

For more information on what employers can expect next regarding the EEOC’s collection of Component-2 data, see ABC General Counsel Littler Mendelson’s update. 

In general, private employers with 100 employees or more that are subject to Title VII of the U.S. Civil Rights Act of 1964 are required to file Form EEO-1 (including both traditional Component-1 data, which reports workforce demographics by job category, race, ethnicity and gender, and now the new Component-2 data). Federal contractors that are otherwise required to file Form EEO-1 will only be required to file Component-2 data if they have 100 or more employees (covered federal contractors with 50-99 employees are required to file Component-1 only). Component-2 includes annual W-2 (box 1) compensation sorted by pay band and annual hours worked. 

ABC has been active in efforts to reverse the court’s decision or, at minimum, extend the time period for employers to comply with any new Component-2 pay data requirement. The EEOC posted a notice on its website clarifying that the appeal does not stay the district court orders or alter EEO-1 filers' obligations to submit Component 2 data, and EEO-1 filers should begin preparing to submit Component 2 data as described above, but it remains unclear what the final outcome will be.

The submission of Component-2 data was initiated during the Obama administration. However, under the Trump administration, OMB blocked the EEOC from requiring employers to submit any compensation data. In March 2019, the D.C. District Court ordered the OMB stay to be vacated. 

ABC will continue to monitor developments and will report to members in Newsline. 

This article is intended for informational purposes only and does not constitute legal advice or opinion.

ABC hosted a golf tournament May 6 to benefit Folds of Honor, a charitable organization that Major Dan Rooney established 12 years ago to provide educational scholarships to spouses and children of America’s fallen and disabled service members. Since 2017, ABC’s tournament has raised $375,000 for Folds of Honor.

Twelve foursomes comprised of members of the military, construction industry, media and Capitol Hill joined PGA professionals at Columbia Country Club in Chevy Chase, Maryland, following a reception May 5 featuring incredible stories from Ginger Gilbert Ravella, a widow and scholarship recipient, and Rodney “Rocky” Sickmann, a veteran of the U.S. Marine Corps.

Sickmann shared his account as one of 65 hostages at the American Embassy in Tehran, Iran, in 1979. He was just 22 years old, and remained a hostage for 444 days before being released on Jan. 20, 1981. During one rescue attempt in 1980, eight service members lost their lives.

“Every day since I came home, I’ve never forgotten those eight individuals and what they did,” Sickmann said. 

Gilbert Ravella’s husband Troy died on a combat mission in Iraq in 2006, leaving behind five children under the age of 8. “You’re not going to get to meet all the families that ABC is helping, but I hope that you remember me when you’re giving to Folds of Honor and loving these families. They need to know they’re not alone,” she said. “Thank you again from the one and a half million dependents just from Iraq and Afghanistan whose lives are changing every single day.”

Partners supporting the tournament include Big D Metalworks, FlorWright, Forbes Tate Partners, Gaylor Electric, hth companies, inc., KBE Building Corp., Marriott and Residence Inn, Miller & Long Concrete Construction, Prospect Waterproofing Co., Reliable Contracting Co. Inc., Tradesmen International, and Wine and Spirits Wholesalers of America.

“I didn’t serve, so this is how I’m serving,” said FlorWright President Andy Wright, whose parents lived next door to Major Rooney when he was in the Air National Guard in Oklahoma. “I’ve been lucky and successful enough that I can afford to support several scholarships a year. Everyone playing golf in this tournament is providing four scholarships from each team; it’s just awesome.” 
 

Construction Spending and Employment: History and Forecast Terms and Sources

Construction Spending

Source: Census Bureau Value of Construction Put in Place Survey Annual Historical Data and Annual Total Table

Total Private Employment

Source: Bureau of Labor Statistics, Current Population Survey, Table 42

Excludes the self-employed. Only annual data are available.

Construction Spending Forecast Assumptions

Starting with the annual construction spending data for 2018 ($1.29 trillion), the estimate assumes 4 percent growth (to $1.35 trillion) for 2019, 3 percent growth above the 2019 construction spending level (to $1.39 trillion) for 2020 and 3 percent growth above 2020 construction spending (to $1.43 trillion) for 2021.

Construction Spending and Job Creation

According to a model developed by Markstein Advisors to calculate the relationship between the volume of construction spending and demand for private construction employment (excluding the self-employed), every $1 billion in extra in overall construction spending generates an average of at least 6,300 construction jobs. Every $1 billion in extra construction spending on infrastructure generates an average of at least 3,300 construction jobs.

Employment Demand Forecast

According to a model developed by Markstein Advisors to estimate total private construction employment demand based on the amount of construction spending, construction employers would have liked to have hired 278,000 more workers in 2018. The estimate for 2018 is consistent with sources reporting employment and available jobs in construction (such as the BLS JOLTS report), given that all openings are not always reported. According to the model, employers would like to hire 440,000 more construction workers in 2019 over the number they employed in 2018.

The model adjusts for expected increases in construction costs because construction spending is in nominal dollars (i.e., not adjusted for inflation). Also, the model includes productivity gains in construction, reducing the amount of labor needed to produce a certain dollar amount of construction output. Finally, the model is based on construction wages and salaries remaining at 2018 levels. Higher wages and salaries would reduce the demand for labor.

Employment Demand Forecast with Additional Infrastructure Spending

The employment projections assume that the administration’s infrastructure plan, if enacted, would result in $25 billion in additional construction spending in 2019 on top of the baseline construction spending forecast; $150 billion additional spending in 2020; and $225 billion more in 2021. Thus, demand for additional construction workers above the baseline estimate for each year would be 82,500 in 2019, 495,000 more workers in 2020 and 742,500 more workers in 2021.

ABC has added Massachusetts Chapter member Brian Renaud of The Contractors Plan to the Beam Club Presidential level and Greater Houston Chapter member Terry Buza of Slack & Co. Contracting Inc. to the Beam Club Hall of Fame level.

The Beam Club was established in 1966 to recognize ABC’s top membership recruiters for their commitment to growing the association. By recruiting five new members, ABC members are automatically enrolled in the Beam Club by their chapter. Members receive one point for each new member recruited. Beam Club activity is ongoing from year to year, with members’ point totals continually accruing and advancing members to the next Beam Club award level.

To reach the Presidential level of the Beam Club, ABC members must recruit between 25 and 49 new members. To reach the Hall of Fame level of the Beam Club, ABC members must recruit between 50 and 99 new members.

For more information, contact Leiloni Hayward at [email protected].

UPDATE:

On May 2, the EEOC announced that, in addition to calendar year 2018 data, EEO–1 form filers should begin preparing to submit Component 2 data for calendar year 2017, in light of the recent court decision. The EEOC expects to begin collecting EEO–1 Component-2 data for calendar years 2017 and 2018 in mid-July, 2019, and will notify filers of the precise date the survey will open as soon as it is available. Component-2 data for 2017 and 2018 is due by Sept. 30, 2019.  Covered employers should be aware that Component-1 data is still due by May 31, 2019. 

For additional details, see ABC general counsel Littler Mendelson’s analysis.

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On April 25, the U.S. District Court for the District of Columbia ruled that covered employers will be required for the first time to submit detailed data on employee compensation and hours worked (or Component-2 data) to the Equal Employment Opportunity Commission as part of their annual EEO-1 form submission by Sept. 30, 2019. The court ordered EEOC to collect this data for calendar year 2018. Covered employers should be aware that Component-1 data is still due by May 31, 2019. 

According to a notice posted on the EEOC website:

-EEO-1 filers should begin preparing to submit Component 2 data for calendar year 2018 by Sept. 30, 2019. The EEOC expects to begin collecting this data for calendar year 2018 in mid-July, 2019, and will notify filers of the precise date the survey will open as soon as it is set.  

-Additionally, as a result of the court vacating the Office of Management and Budget's stay of Component-2, the EEOC will also collect Component-2 data for either calendar year 2017 or calendar year 2019. The agency plans to post an additional notice by May 3, 2019, announcing its decision.

In general, private employers with 100 employees or more that are subject to Title VII of the U.S. Civil Rights Act of 1964 are required to file Form EEO-1 (including both traditional Component-1 data, which reports workforce demographics by job category, race, ethnicity and gender, and now the new Component-2 data). Federal contractors that are otherwise required to file Form EEO-1 will only be required to file Component-2 data if they have 100 or more employees (covered federal contractors with 50-99 employees are required to file Component-1 only). Component-2 includes annual W-2 (box 1) compensation sorted by pay band and annual hours worked. For additional details, see ABC general counsel Littler Mendelson’s analysis.

ABC was active in efforts to reverse the court’s March decision or, at minimum, extend the time period for employers to comply with any new Component-2 pay data requirement. While the new order extends the due date from May 31 to Sep. 30, there remain serious questions as to whether the court overstepped its authority by ordering EEOC to collect the information at all. An appeal of the court’s decision remains a possibility.

The submission of Component-2 data was initiated during the Obama administration. However, under the Trump administration, OMB blocked the EEOC from requiring employers to submit any compensation data. In March 2019, the D.C. District Court ordered the OMB stay to be vacated. 

EEO-1 filers should continue to monitor updates on the EEOC’s website and in Newsline. 

This article is intended for informational purposes only and does not constitute legal advice or opinion.

This year, ABC of Greater Houston is celebrating 50 years of supporting the merit shop construction industry. On Thursday, April 25, members and community leaders gathered to commemorate the accomplishments of past chapter leaders and celebrate the chapter’s successes. Houston Mayor Sylvester Turner issued a proclamation in honor of the anniversary and declared April 25 as “ABC Houston Day.”

Founded in 1969, the ABC Greater Houston Chapter serves several hundred commercial and industrial contractors, suppliers and construction associates in the metropolitan area. “ABC has been a part of my family for over twenty years,” says 2019 ABC Greater Houston Chair Brandon Mabile, business development manager at Performance Contractors. “I’ve grown up with ABC, and I’m very excited to celebrate all that the chapter has done to help pave the way for contractors to work in an open shop environment with the business rights and freedoms we readily enjoy today.” 

Over the past 50 years, ABC of Greater Houston’s focus has been on educating its members, teaching the value of safety and encouraging political advocacy. The chapter, along with the other 68 ABC chapters, also works to recruit more people into the construction industry to address the shortage of skilled craft professionals.

“I’m honored to be able to serve the Houston chapter,” said Chapter President Russell Hamley. “I’ve been a part of the association for nearly 25 years, and I have seen the association grow in size and influence and expand our development and education programs. I’m excited about what the association will accomplish in the next 50 years.” 


Photo by Robert Chevis

Houston Mayor Sylvester Turner gives a proclamation in recognition of ABC Greater Houston’s 50th anniversary with (from left to right) ABC Houston President Russell Hamley, City Council Member Mike Knox, 2019 Chairman Brandon Mabile and City Council Member Mike Laster.

On April 17, ABC joined state, local, tribal and community leaders in attending the White House Opportunity Zones Conference. More than 170 people from across the nation attended.



Opportunity Zones were established under the 2017 Tax Cuts and Jobs Act to incentivize long-term investments in low-income communities across the country by offering capital gains tax relief to investors. According to the White House, Opportunity Zones are anticipated to spur $100 billion in private capital investment, which will foster economic revitalization and job creation and promote sustainable economic growth. More than 8,760 communities in all 50 states, the District of Columbia, and five territories have been designated as Opportunity Zones.

The conference kicked off with remarks from federal leaders including U.S. Department of Treasury Secretary Steven Mnuchin and U.S. Department of Housing and Urban Development Secretary Ben Carson, whose agencies unveiled updated guidance to encourage investment and development in economically distressed areas. (For more information about challenges and opportunities for contractors, read Construction Executive magazine’s coverage, “How the Construction Industry Can Take Advantage of Opportunity Zones.”)

During his remarks, President Donald Trump highlighted the tax cuts he signed into law and the growing economy. “Across the country, our tax cuts have kicked off a race to invest in Opportunity Zones beyond anything that anybody in this room even thought. In counties with heavy concentration of Opportunity Zones, wages have risen by now—it seems that we were talking about 8%, but it looks like it’s going to be a much higher number than that.” 

“Property sale prices in Opportunity Zones, if you have a home, have already skyrocketed by more than 20%. Secretary Mnuchin estimates that private businesses will invest $100 billion in Opportunity Zones, and that’s going to be in a fairly short period of time,” said Trump.  

The president also discussed the White House Opportunity and Revitalization Council, which he recently established to provide further support to Opportunity Zones. The council is chaired by Secretary Carson and comprised of 16 federal agencies. 

In addition to remarks from federal leaders, attendees listened to a panel discussion with federal, state and community leaders and participated in breakout sessions.  

Additional information from federal agencies can be found here:
Opportunity Zones resources
IRS frequently asked questions on Opportunity Zones
White House Opportunity and Revitalization Council Implementation Plan
U.S. Department of Treasury proposed regulations
HUD request for information

On Wednesday, April 17, ABC President and CEO Michael Bellaman joined Carolyn Lee, executive director at The Manufacturing Institute; Karen Pittman, co-founder and CEO of the Forum for Youth Investment; and Carrie Schwab-Pomerantz, board chair and president of the Charles Schwab Foundation, for a Boys and Girls Club of America panel, Building a Diverse Talent Pipeline: The Policy and Business Case. 

Moderated by David Seaton, chairman and CEO of Fluor Corp., an ABC member company, the panel focused on why readying young people for life and the workforce is critical to the success of our future workforce, nation and economy. The panelists discussed how technology is changing day-to-day responsibilities in industries like manufacturing, the soft skills needed for youth to succeed professionally and, importantly, the many paths into today’s workforce that don’t require a four-year college degree.

“When we talk about the action in the K-12 arena, we need guidance counselors to talk about technical education with the same passion they talk about college degrees,” said Bellaman. He stressed that parents and teachers also need to encourage young people who show an interest in careers like welding to pursue that passion, noting that salaries for in-demand craft professionals can reach six figures. 

Bellaman also highlighted that the construction industry provides not just a job, but a well-paying career. As you don’t need a college degree, the barriers to entry are minimal, and the opportunity to grow, earn new credentials and move up through leadership with the “earn-while-you-learn” model is exceptional. 

ABC members invested $1.6 billion to educate their employees in 2018, up from $1.1 billion in 2013. The 45% increase in spending resulted in nearly twice as many course attendees—more than 980,000—receiving craft, leadership and safety education to advance their careers in commercial and industrial construction.

On April 15, ABC submitted comments expressing its support for the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers’ proposed rule revising the definition of “water of the United States” under the Clean Water Act. ABC also filed comments as a member of the Waters Advocacy Coalition. 

As the result of President Trump’s Executive Order 13778 on “Restoring the Rule of Law, Federalism and Economic Growth by Reviewing the ‘Waters of the United States’ Rule,” the EPA and Corps published a proposed rule on Feb. 14 that seeks to provide businesses and landowners with clear definitions of what are and what are not “navigable waters” subject to federal jurisdiction under the CWA.

The agencies’ proposal outlines six categories of “waters of the United States” that would be subject to jurisdiction: traditional navigable waters, tributaries, certain ditches, certain lakes and ponds, impoundments and adjacent waters. The proposal also excludes waters that are not explicitly mentioned in these categories. 

In its comments, ABC stated its members appreciate the agencies’ “if it is not in, it is out” approach and believe that it will help alleviate confusion between jurisdictional and non-jurisdictional waters. Additionally, ABC offered several suggestions to improve upon the agencies’ proposal, including clarification of various key terms within the categories and the elimination of impoundments as a standalone category.

ABC has long been a vocal opponent of the Obama-era WOTUS rule since it was first proposed in April 2014, and in its comments on the 2019 proposal, ABC stated its continued commitment to work with the agencies and ensure the clearest possible regulations so that its members have the information they need to comply with the law.