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THE VOICE OF THE MERIT SHOP

ABC is the voice of the merit shop on Capitol Hill! Sending letters to Congress allows ABC to publicly advocate for the views and interests of our more than 23,000 members. By corresponding with U.S. House of Representatives and Senate members, ABC promotes fair and open competition in the construction industry and fights to protect merit shop contractors around the country.

Letters to the Hill

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THE VOICE OF THE MERIT SHOP

ABC is the voice of the merit shop on Capitol Hill! Sending letters to Congress allows ABC to publicly advocate for the views and interests of our more than 23,000 members. By corresponding with U.S. House of Representatives and Senate members, ABC promotes fair and open competition in the construction industry and fights to protect merit shop contractors around the country.

On May 20, the House Transportation and Infrastructure Committee's Subcommittee on Economic Development, Public Buildings, and Emergency Management held the hearing, "Federal Courthouse Design and Construction: Examining the Costs to the Taxpayer." Ahead of the hearing, ABC sent a letter to the subcommittee, highlighting how the Biden administration's project labor agreement mandate increases federal courthouse construction costs. ABC noted several courthouse construction and improvement projects, totaling several hundred million dollars, that require a PLA as a result of the mandate. In his opening statement, Chairman Scott Perry, R-Pa., entered ABC's letter into the hearing record. 

On May 15 the U.S. House Committee on Education and the Workforce Subcommittee on Workforce Protections held a hearing titled, “Reclaiming OSHA’s Mission: Ensuring Safety Without Overreach.” Ahead of the hearing, ABC sent a letter to the committee calling for the withdrawal of two Biden-era OSHA regulations, the Heat Injury and Illness Prevention in Outdoor and Indoor Settings Proposed Rule and the Worker Walkaround Representative Designation Process Final Rule.

Regarding the Heat rule, ABC noted that the rule imposes prescriptive, complicated requirements on construction industry employers, limiting all flexibility, which could weaken contractor efforts to prevent heat stress for workers. ABC added through the Worker Walkaround rule, OSHA is injecting itself into labor-management disputes and casting doubt on its status as a neutral enforcer of the law. This final rule negatively impacts the rights of employers while simultaneously ignoring the rights of the majority of employees who have not authorized a union to represent them.

In response to a request from the Office of Management and Budget for stakeholder recommendations to cut federal red tape, ABC submitted a letter outlining arguments for rescinding 10 final rules promulgated by the Biden administration, including project labor agreement mandates, Davis-Bacon Act updates, overtime, independent contractor under the Fair Labor Standards Act, OSHA walkaround and the noncompete clause ban, as well as withdrawing the heat rule as proposed.

On April 30, the U.S. House Committee on Small Business held a full committee markup on several pieces of legislation, including the ABC-supported Prove It Act (H.R. 1163). Ahead of the markup, ABC sent a letter to the committee urging members to report the bill for a full House vote. The Prove It Act strengthens the Regulatory Flexibility Act by allowing small businesses, and groups like ABC, to petition the U.S. Small Business Administration’s Office of Advocacy to examine agency rules and requires that agencies evaluate both the direct and indirect costs of proposed rules on small businesses. What’s more, the bill exempts small businesses from regulatory action when agency’s do not comply with the RFA.

The Prove It Act was favorably reported for a full House vote in a 15-11 vote.

On March 25, the U.S. House Committee on Education and the Workforce Subcommittee on Workforce Protections held a hearing title, “The Future of Wage Laws: Assessing the FLSA’s Effectiveness, Challenges, and Opportunities.” Ahead of the hearing, ABC sent a letter to the committee in support of legislation that clarifies who qualifies as an independent contractor and protects workers who have long been properly classified as independent contractors in the construction industry:

  • H.R.1319, the Modern Worker Empowerment Act, introduced by Rep. Kevin Kiley, R-Calif., which amends the FLSA to base worker classification determinations on two clear tests: a business’s control over a worker’s work and how it is performed and the worker’s opportunity to express entrepreneurial discretion. This legislation also clarifies that safety, legal and insurance guidelines and contractual project completion deadlines are not determinants of worker classification. Further, it would ensure the worker classification standard is consistent between the FLSA and the National Labor Relations Act.
  • H.R.1320, the Modern Worker Security Act, introduced by Rep. Kiley, which provides businesses with the opportunity to offer flexible or portable benefits to workers without the risk of the provision of these benefits jeopardizing worker classification determinations.

ABC also encouraged representatives to reintroduce H.R.1980, the Working Families Flexibility Act, from the 117th Congress. This legislation amends the FLSA to provide workers choice between compensatory overtime pay and compensatory time off at a rate not less than 1.5 times hours worked.

In addition to the letter, ABC joined other coalitions of trade associations, including the Independent Work Coalition, in submitting letters in support of the Modern Worker Employment Act, Modern Worker Security Act, Working Families Flexibility Act, and the Ensuring Workers get PAID Act.

On March 11, the U.S. House Committee on Small Business Subcommittee on Oversight, Investigations, and Regulations held a hearing titled, “Restoring the SBA: Putting Main Street America First.” Ahead of the hearing, ABC sent a letter to the Committee calling on Congress to empower the SBA and small businesses around the country to keep federal agencies in check when implementing new regulations. The letter specifically supports the ABC-supported Prove It Act which strengthens the Regulatory Flexibility Act (H.R. 1163) by allowing Main Street businesses, and groups like ABC, to petition the SBA to examine whether a federal regulation would have significant economic effects on a large number of small businesses.

In the hearing, Prove It Act sponsor Rep. Brad Finstad, R-Minn., touted the bill, noting that it helps small business navigate the regulatory environment. Alfredo Ortiz, CEO of Job Creators Network, added that the bill, “is a game changer… for too long, agencies have been given a pass from showing the impact of regulations on small businesses. Having the opportunity to have a seat at the table at the beginning of thew process rather than at the end of the process is critical.” You can watch their exchange here.

On Feb. 5, the U.S. House Committee on Oversight and Government Reform held a hearing, Rightsizing Government. The hearing focused on eliminating waste, fraud and abuse by the federal government. Ahead of the hearing, ABC sent a letter to the Committee highlighting how the Biden administration’s Use of Project Labor Agreements for Federal Construction Projects final rule eliminated merit-based federal contracting and increased taxpayer costs by 12-20%. The letter urged Congress and the Trump administration to Congress and the Trump administration have the opportunity to restore merit to federal contracting by advancing fair and open competition. Rep. Clay Higgins, R-La., who serves on the Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs, entered ABC’s letter into the hearing record. The Congressman's remarks may be seen here

On Feb. 5, the U.S. House Committee on Small Business held a hearing titled, “Hope on the Horizon: Prioritizing Small Business Growth in the 119th Congress.” Ahead of the hearing, ABC sent a letter to the committee calling for deregulation and sound legislation in the 119th Congress to help small businesses succeed.

During the hearing, Rep. Brad Finstad, R-Minn., touted the Prove It Act of 2024, which he introduced in the 118th Congress. ABC key voted the bill, which strengthens the Regulatory Flexibility Act by allowing industry groups, like ABC, to petition the Small Business Administration to examine whether a federal regulation would have significant economic effects on a large number of small businesses, among other things. You can view Rep. Finstad’s remarks from the hearing here.

In addition, Rep. Brian Jack, R-Ga., highlighted the need for deregulation for the small business community. When Rep. Jack asked witness Bill New of New Industries, Inc., a steel fabrication company, about the benefits of deregulation could be, New responded, “I think like a lot of small businesses – I’m not looking for a handout, I’m just looking for a level playing field. Then get out of my way.” You can view New’s comment here.

You can view the full committee hearing here.

On Jan. 22, the U.S. House of Representatives Committee on Transportation and Infrastructure’s Subcommittee on Highways and Transit held a hearing “America Builds: Highways to Move People and Freight.” Witnesses for the hearing included Jim Tymon, the Executive Director of American Association of State Highway and Transportation Officials; Janet Kavinoky, Vice President of External Affairs and Corporate Communications at Vulcan Materials Company;  Dennis Dellinger, President and CEO of Cargo Transporters, Inc. and Chairman of the American Trucking Associations; and Matthew Colvin, Chief of Staff for the Transportation Trades Department of the AFL-CIO. The hearing focused on issues impacting the supply chain, including infrastructure construction, workforce development and freight.

ABC sent a letter to the Subcommittee ahead of the hearing urging it to consider fair and open competition, all-of -the-above workforce development, and Davis-Bacon repeal/reform within the Surface Transportation Act reauthorization.

On Jan. 9, ABC and a diverse group of two dozen construction and business groups sent a letter to President-elect Donald Trump urging him to eliminate President Joe Biden’s final rule implementing Executive Order 14063 requiring federal construction contracts of $35 million or more to be subjected to anti-competitive and inflationary project labor agreements. The coalition letter also called for the repeal of additional Biden administration policies pushing PLA mandates and preferences on federally assisted construction projects procured by private developers and local and state governments.

“In place of these failed Biden administration policies, we request a new executive order that restricts government-mandated PLAs and restores robust fair and open competition on federal and federally assisted construction projects,” said the coalition letter. “This will save taxpayers an estimated $10 billion per year on public works projects annually and restore opportunities for all of the construction industry to rebuild America."

Learn more here.