The U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) recently announced the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) hiring benchmark for 2021. Effective March 31, 2021, the hiring benchmark will be 5.6 percent, slightly down from 5.7 percent in 2020. This benchmark is an annual goal for the percentage of hires who are veterans at each affirmative action plan (AAP) establishment
鶹Ƶof America has released an analysis of how the Protecting the Right to Organize Act of 2021 (PRO Act) would affect open-shop construction contractors, as well as a shorter summary on the same topic. The papers are posted on AGC’s PRO Act web page along with similar papers addressing the bill’s potential impact on union contractors, an 鶹ƵConsructorCast recording, and other PRO Act resources.
On March 22, the Senate confirmed the nomination of Boston Mayor Marty Walsh to become the next Secretary of the U.S. Department of Labor by a bipartisan final vote of 68-29. Mayor Walsh has a long history with the construction industry, as he is the former head of the Boston Building Trades Council and began his career with a local Boston Laborers’ union. President Biden campaigned on a robust and aggressive labor agenda that included providing greater rights to organizing and unions. Walsh will now be responsible for implementing much of that agenda.
On March 22, the United States Senate confirmed the nomination of Boston Mayor Marty Walsh to become the next Secretary of the U.S. Department of Labor by a bipartisan final vote of 68-29.
In accordance with the Biden administration’s recent regulatory freeze memorandum, the U.S. Department of Labor (DOL) Wage and Hour Division (WHD) issued proposals to roll back two of the Trump administration’s rulemakings. One DOL proposal is to withdraw a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA). The previous final rule originally was to be effective on March 8, 2021, however, a recent proposal delayed that date to allow the agency “the opportunity to review and consider the questions of law, policy, and fact raised by the rule[s].”
CARES Act Section 3610 Extended to September 30, 2021
The Congress-passed $1.9 trillion COVID-relief bill contains multiemployer pension plan provisions of interest to contributing construction contractors including specific COVID related provisions and funding relief for eligible plans. The COVID related pension provisions are intended to provide plans relief to plans that were impacted by COVID with investment losses or contribution losses. Meanwhile the bill provides significant multiemployer pension relief through a Special Financial Assistance Program by providing a one-time lump sum payment to eligible plans to pay all benefits through 2051 (30 years) with no expectation of repayment. It is estimated there are about 100 critical and declining plans, some critical plans and a few endangered plans in the construction industry that could be eligible for some relief. Starting in 2031 PBGC premiums would be increased to $52/year and indexed for inflation every year after for all plans and participants. Premiums are currently scheduled to be about $43 in 2031 because of indexing.
Employee Retention Tax Credit, Paid Leave Tax Credit & More
The Senate is currently considering the latest COVID relief bill, which includes a new round of multiemployer pension relief. The bill would create a Special Financial Assistance Program for struggling multiemployer pension plans. Under the Special Financial Assistance Program eligible plans include critical and declining plans, some critical plans and a few endangered plans would receive a one-time lump sum payment that is equal to the amount of funding needed to pay benefits through 2051 (30 years). The proposal does not include any concept of repayment for this assistance.
In response to a directive from President Biden, the U.S. Department of Labor (DOL) issued guidance to state unemployment insurance agencies that expands the number of instances in which workers may be eligible for Pandemic Unemployment Assistance (PUA). These newly eligible workers self-certify that they refused to work or accept an offer of work at a worksite not in compliance with coronavirus health and safety standards, with states being responsible for investigating and accepting or denying claims.