Backend Category: Advocacy

Update on Administration Executive Action: Worker Organizing and Empowerment & Project Labor Agreements

Early February saw the release of the first report related to Executive Order (EO) 14025, White House Task Force Report on Worker Organizing and Empowerment. MCAA and the UA provided joint input for the report. MCAA and the Construction Employers of America (CEA) also filed an amicus brief with the National Labor Relations Board (NLRB) on the topic of worker misclassification. February also marked the publication of an EO requiring project labor agreements (PLAs) on direct federal construction projects. MCAA’s partnerships ensure our members’ voices are heard.

Biden Administration Worker Organizing and Empowerment Agenda Notches Up

The Biden Administration’s worker organizing and empowerment agenda notched up with the release of EO14025, White House Task Force Report on Worker Organizing and Empowerment, on February 7, 2022. The report includes 70 recommendations across a broad range of government agencies and programs to broadly empower and support the nation’s policy to promote collective bargaining, declared in the National Labor Relations Act (NLRA) of 1935.

The comprehensive report is a first installment of the task force’s ongoing work. A follow-on report is called for in six months.

MCAA and the UA filed several sets of comprehensive recommendations for the task force’s initial report. We will continue to participate in the process going forward.

Following are just a few of the many task force recommendations of particular interest to union-signatory construction industry employers.

Updating the regulations implementing the Davis-Bacon Act – MCAA provided comments on the Biden Labor Department’s initial draft regulations. A proposed set of new regulations has passed paperwork review and is expected out soon.

Inter-agency crackdown on worker misclassification – The task force report calls for renewed interagency efforts to crack down on the scourge of worker misclassification that is all too common in the construction industry. MCAA and the Construction Employers of America (CEA) filed an amicus brief with the National Labor Relations Board (NLRB) on February 10, 2022, in the Atlanta Opera case asking the NLRB to return to the proper worker classification criteria to be applied to questions of employment status under the national Labor Relations Act as applied in the Board’s FedEx case standard, and overturning a more permissive rule that overemphasized pretextual “entrepreneurialism” under the Trump NLRB’s Super Shuttle decision.

The MCAA/CEA brief said: “. . . The incentives to misclassify construction industry employees across the broad range of labor and employment laws are great – and unscrupulous employers are assiduous in finding naked pretenses to cloak misclassification as some form of “entrepreneurialism.” The subterfuges used by unscrupulous employers in these schemes are as various as they are transparent. Airport taxi drivers working controlled shifts in leased company vehicles are no more modern-day Cornelius V Vanderbilts in waiting than are construction piece-work drywall installers likely to become international prime contractors. And if they are, they can just as readily make their starts as bona fide employees. The notion of entrepreneurialism in this context is a cynical pretense for exploitation – at the expense of workforce standards and workforce equity for the good of the economy overall.”

In its brief in the Atlanta Opera case, the MCAA/CEA called for a reconsideration of the recent NLRB Velox decision, and for adoption of a strict liability standard for worker misclassification under the NLRA, i.e., – misclassification alone without further charges is a per se violation of Section 7 employee rights to engage in protected concerted activity.

Specific Federal agency actions called for in government contracting– The task force calls on the Veterans Administration to use labor participation as a specific evaluation factor in its construction program awards. The task force also calls on the General Services Administration to provide training and listening sessions on the benefits of union representation for government contractor employees. Moreover, the task force report calls for the more robust deployment of labor policy advisors at all executive agencies. Some aspects of these broad contracting proposals would be implemented in robust use of the Project Labor Agreement (PLA) mandates issued in the Administration’s recent Executive Order on PLAs described below.

Biden Administration Issues Executive Order Requiring Project Labor Agreements on Direct Federal Construction Projects 

On February 4, 2022, President Biden issued an Executive Order mandating use of project labor agreements (PLAs) on direct Federal construction projects of $35 million or more. The Biden EO revokes a previous EO on the matter issued by President Obama (EO 13502, issued February 6, 2009, which had remained in effect since then).

Threshold – The Biden EO applies to projects of $35 million or more, and contracting officers are required to provide a written report of any exceptions that might apply to exempt an otherwise covered project. The EO allows agency discretion to use PLAs on projects of lesser value if circumstances warrant. They likewise retain discretion to seek use of PLAs on Federally assisted projects if circumstances warrant.

Coverage – The PLA mandate applies to all prime contractors and subcontractors performing onsite work on covered projects. The EO does not require a PLA with any labor organization but does set out that a PLA must contain protections against strikes, lockouts, and other work stoppages and provide for uniform project dispute resolution methods. A preexisting signatory relationship is not required for prime contractors and subcontractors to bid and perform work on covered PLA projects.

Exceptions, transparency and periodic reporting – Senior agency procurement officials are authorized to grant exceptions from the EO’s mandate in written justifications for specific reasons (as follows: project of short duration, is a single craft job, there are a limited number of specialized firms to perform the job, the PLA requirement would based on market data frustrate free and open competition, and other limited factors). Agencies are required to file quarterly reports with the Office of Management and Budget (OMB) on use of PLAs and any exceptions that have been granted. Agencies also are required to publish that data on centralized public websites.

Effective dates, regulatory implementation, and contracting officer training – The EO directs the Federal Acquisition Regulatory Council to publish proposed rules implementing the EO within 120 days of February 4, 2022, and to become effective on solicitations issued on or after publishing final regulations promptly after public comments are processed. (However, the EO states that it is also effective immediately, and that agencies are encouraged to comply with the EO on covered contract solicitations issued on or after February 4, 2022, to the extent already permitted by law.) OMB is directed to issue regulatory guidance to agencies on the written exceptions and publishing data reporting on use of PLAs. The EO further directs the Secretaries of Defense, Labor, and the Director of OMB to design a training strategy for agency contracting officers to implement the EO within 90 days of issuance. Then, within 180 days of the publication of final FAR regulations, those same entities must provide a report to the Assistant to the President for Economic Policy and the Director of the National Economic Council on the content of that training strategy. 

On publication and release of the EO, MCAA CEO Tim Brink issued the following statement to the White House:

Moreover, in times of tight labor markets it is absolutely prudent for contracting officers to consider the manifold advantages of the building trades workforce development training and skills – as well as workforce deployment and nationwide portability advantages of the union sectors’ workforce development system as compared with the lack of that sophistication in the unorganized sector of the industry.

MCAA had long and consistently supported the Federal government construction program contracting officers having the same proprietary discretion judgments options with respect to project contracting matters – including labor policy and performance advantages – as private sector project owners enjoy.

BLS Reports Slight Uptick in Construction Industry Union Representation in 2021

Union representation rates in the construction industry inched up slightly in 2021, increasing to 13.6%, with 1,112, 000 of the 8,157,000 workers “represented” by unions, up from 13.4% in 2020 (993,000 of 1,050,000 employed).  Among those 1,112,000 represented  by unions, 1,024,000 were classified as union members, leaving some 88,000 (roughly 8%) of the remainder classified as represented by unions (covered by a collective bargaining agreement (CBA)) but not reported as union members. 

In 2020, 993,000 of the 1,050,000 represented by unions were classified as members, leaving some 57,000 (some 5%) classified as represented or covered by a CBA, but not counted as union members – as judged by responses to the BLS Current Population Survey questions that are the basis of the annual report. (Union Members – 2021, USDL-22-0079, January 20, 2022).

According to the BLS report, median  weekly earnings among all full-time wage and salary workers in the construction industry came to $966 in 2021, up  marginally from $961 the year before. In 2021, union members were credited with $1,344 per week, as compared with $1,322 for those non-members covered by a labor contract, and $922 per week for non-union workers.  In  2020, the amounts were: $961 for all workers; $1,254 for union members; $1,234 for non-members covered by a CBA; and $920 for non-union workers.

MCAA Note – The differential between union membership and union representation rates may reflect the impact and change in right-to-work laws in any state.  BLS data on union membership rates over the years is available on a state-by-state basis on the BLS website. The state data reflects total union membership rates and is not broken down by public or private sectors or by industry.

OMB and SFW Issue Updated COVID-19 Workplace Safety Guidance for Federal Contractors and Subcontractors

The Safer Federal Workforce (SFW) Task Force issued updated Frequently Asked Questions based on Office of Management and Budget (OMB) guidance on non-enforcement of vaccination on Federal contracts and subcontracts. The guidance, which applies to those that had been governed by the vaccination mandates in EO 14042, comes after recent court decisions stayed the effectiveness of those rules pending further legal challenges.

Below is the updated guidance from the OMB and the SWF:

Regarding Applicable Court Orders and Injunctions: The Office of Management and Budget has issued guidance on implementing requirements of Executive Order 14042 while ensuring compliance with applicable court orders and injunctions, including those that are preliminary and may be supplemented, modified, or vacated, depending on the course of ongoing litigation.

  • For existing contracts or contract-like instruments (hereinafter “contracts”) that contain a clause implementing requirements of Executive Order 14042: The Government will take no action to enforce the clause implementing requirements of Executive Order 14042, absent further written notice from the agency, where the place of performance identified in the contract is in a U.S. state or outlying area subject to a court order prohibiting the application of requirements pursuant to the Executive Order (hereinafter, “Excluded State or Outlying Area”). In all other circumstances, the Government will enforce the clause, except for contractor employees who perform substantial work on or in connection with a covered contract in an Excluded State or Outlying Area, or in a covered contractor workplace located in an Excluded State or Outlying Area.
  • Currently Excluded States and Outlying Areas: All of the United States and its outlying areas, including:
    1. The fifty States;
    2. The District of Columbia;
    3. The commonwealths of Puerto Rico and the Northern Mariana Islands;
    4. The territories of American Samoa, Guam, and the United States Virgin Islands; and
    5. The minor outlying islands of Baker Island, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Islands, Navassa Island, Palmyra Atoll, and Wake Atoll.
  • NOTE: Federal agency COVID-19 workplace safety protocols for Federal buildings and Federally controlled facilities still apply in all locations. Contractor employees working onsite in those buildings and facilities must still follow Federal agency workplace safety protocols when working onsite.

Legislative & Regulatory Update

Legislative and regulatory developments are picking up pace in Washington, DC, in advance of the Congressional recess. Key issues of interest to MCAA members include vaccination requirements, clean energy, electric vehicle tax credits, and revised Davis-Bacon regulations.

Vaccination Requirements On Hold

The Biden Administration’s vaccination mandates for employees in firms with more than 100 employees, and Federal contractors and subcontractors are now all on hold in the wake of invalidating court decisions and OSHA regulatory action.

MCAA has filed comments with OSHA, seeking a measured re-implementation of the OSHA Emergency Temporary Standard (ETS) on COVID-19 if a supervening court decision in the Sixth Circuit Court of Appeals would reinstate the rule by lifting the stay on enforcement before a full decision on the merits of the legal arguments. So, until further court action, the vaccination requirements remain in public policy “purgatory,” awaiting further judicial action.

The Senate passed a resolution of disapproval of the vaccination mandates in the OSHA ETS by a vote of 52 to 48 this week (Senators Joe Manchin (D-WV) and Jon Tester (D-MT) broke party lines and voted for the resolution). Similar passage in the House is judged very unlikely. It is even less likely that the President would sign such a resolution, if passed, condemning his own action.

New Clean Energy Executive Order Announced

President Biden released a Clean Energy Executive Order on December 8, 2021, containing a broad scope of administrative actions that “…. demonstrates how the United States will leverage its scale and procurement power to lead by example in tackling the climate crisis. The Executive Order will reduce emissions across federal operations, invest in American clean energy industries and manufacturing, and create clean, healthy, and resilient communities. The President is building on his whole-of-government effort to tackle the climate crisis in a way that creates well-paying jobs, grows industries, and makes the country more economically competitive.”

Among the many elements of the initiative, several below impact the construction industry:

Transition federal infrastructure to zero-emission vehicles and energy efficient buildings powered by carbon-pollution-free electricity. … The federal government will work with utilities, developers, technology firms, financiers and other to purchase electricity produced from resources that generate no carbon emissions, including solar and wind, for all its operations by 2030. … With the scope and scale of this electricity demand, the federal government expects it will catalyze the development of at least 10 gigawatts of new American clean electricity production by 2030, spurring the creation of new union jobs and moving the country closer to achieving a carbon pollution-free electricity sector by 2035.”

“Modernize the federal building portfolio to reach net-zero emissions by 2045, including a 50 percent reduction in building emissions by 2031. The federal government will work across existing real property and during new building construction and major renovations to increases water and energy efficiency, reduce waste, electrify systems, and promote sustainable locations for federal facilities to strengthen the vitality and livability of the communities in which federal facilities are located. Additionally, the Biden-Harris Administration will implement the first-ever Federal Building Performance Standard and will use performance contracting to improve buildings with no up-front costs.” 

“Make federal agencies more adaptive and resilient to the impacts of climate change, and increase the sustainability of federal supply chains, achieving net-zero emissions from federal procurement by 2050. The companies that supply the federal government are critical partners in achieving our climate goals and growing the economy and American jobs. Cutting emissions from the federal government’s procurement also means buying materials with a lower carbon footprint. The federal government will launch a “buy clean” initiative for low-carbon materials and prioritize the purchase of sustainable products, such as products without added perfluoroalkyl or polyfluoroalkyl substances (PFAS). Through these actions, the federal government will provide a large and stable signal to the market for sustainable and low-carbon goods made in America, advancing America’s industrial capacity to supply the goods and materials for the future while growing good jobs for American workers.

Electric Vehicle Tax Credits Under Review

The Senate parliamentarian is considering whether the Administration’s proposal to add $4,500 to the $7,500 tax credit for the purchase of electric vehicles that are assembled by domestic US union labor is appropriate for inclusion in the Build Back Better reconciliation proposal pending in Congress.

Revised Davis-Bacon Regulations Inching Forward

The long-awaited proposal to revamp the US Department of Labor’s (DOL) Wage and Hour Division regulations implementing the Davis-Bacon Act took the final step in the regulatory process. On December 3, 2021, DOL sent the regulatory proposal to the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) for a final look-through.

MCAA commented on those regulatory proposals earlier this year, seeking changes in peak week reporting and asking for a review of the 50% threshold for prevailing wage determinations. These changes are of consequence now as the infrastructure legislation will bring a broad expansion of Davis-Bacon projects across all markets covered by the measure.

MCAA will continue to monitor legislative and regulatory actions and provide updates as appropriate. In the meantime, questions about these activities can be directed to John McNerney.

Washington Policy Update

MCAA offers a capsule digest of some key public policy, legislative, and regulatory developments in Washington, D.C., that will influence the MCAA policy agenda in the near and intermediate terms.

Good News from the Pension Benefit Guaranty Corporation (PBGC) 

With the infusion of some $85 billion or more for the PBGC Special Financial Assistance Program, slated to provide  30 years of pension benefit payment to some 250 eligible multiemployer plans covering upwards of 3 million participants and their families, the PBGC’s 2021 Annual Performance and Financial Report issued on November 15th,  PBGC Director Peter Hartogensis proudly declares:

“Fiscal Year (FY) 2021 marks a significant milestone for PBGC’s Multiemployer Program with the enactment of the American Rescue Plan Act of 2021 (ARP).  Prior to enactment of ARP, PBGC’s Multiemployer Program was expected to run out of money by 2026.  ARP’s’ Special Financial Assistance (SFA) Program will significantly extend the solvency of the Multiemployer Program by at least thirty years.  While future reforms would help improve the long-term health and resilience of the multiemployer system, ARP has provided a financial lifeline, and the effects of that are clear. [Emphasis added.]

“For the first time in almost twenty years, both PBGC’s Multiemployer Program and Single Employer Program have a positive net position at fiscal year-end  The Multiemployer Program’s positive net position of $481 million at the end of FY 2021 is in sharp contrast to the negative net position of $63.7 billion at the end of FY 2020, a drastic improvement of $64.2 billion.  PBGC’s Single-Employer Program remains financially healthy with a positive net position of $30.9 billion at the end of FY 2021, compared to $15.5 billion at the end of FY 2020, an improvement of $15.4 billion.”

The ARP cash infusion in to the PBGC SFA program has taken great pressure off PBGC and the multiemployer system as a whole, avoiding the broadly negative cascading effects of large plan defaults that were looming over the system for many years.  Also, the sentence highlighted above with PBGC referring to even further future reforms – like Composite Plans long supported by MCAA, along with perhaps broadly expanded variable benefit plans – would bolster further the sustainability of the system overall for the mutual  benefit of plan participants and beneficiaries and contributing employers.  Those future reforms will now most likely be pushed into next year (maybe – as many view the PBGC SFA program as the last word on pension reform for some time) in Congress as the end of year legislating is compressed by a tight schedule and pressing funding and budget matters.

Other Good News in Pension Matters

The UA National Pension Fund annual funding notice issued October 19, 2021, for the Plan Year (PY) ending June 30, 2021, announced  that for PY July 1, 2021, the fund is certified in “safe” status with a funding percentage of 87.3% .  That Fund is no longer in “endangered” status.

Infrastructure Bill Signing

Coincident with the signing of the bipartisan infrastructure bill on November 15, the Biden Administration issued an Executive Order (EO) Establishing Priorities and Task Force for Implementation of the Bipartisan Infrastructure Law “to coordinate the law’s effective Implementation.”  The EO Includes three priorities that are particularly relevant for MCAA member firm competitiveness in these new markets:

  1. Invest public dollars efficiently, avoid waste, and focus on measurable outcomes for the American people
  2. Buy American and increase the competitiveness of the U.S. economy, including through implementing the Act’s Made-in-America requirements and bolstering domestic manufacturing and manufacturing supply chains
  3. Create good-paying job opportunities for millions of Americans by focusing on high labor standards for these jobs, including prevailing wages and the free and fair chance to join a union

The EO creates an Infrastructure Implementation Task Force co-chaired by National Economic Council Director Brian Deese and White House Infrastructure Implementation Coordinator, Mitch Landrieu. Office of Management and Budget (OMB), Climate Policy Office, and a variety of Cabinet officials fill out the ranks of the group.

The prevailing wage requirements in the measure are broad, going beyond the usual direct Federal and federally assisted grant program projects and grant program and state prevailing wage policies in place for those types of projects. The requirements also extend to the bond financing provisions of the broad measure, and prevailing wage and apprenticeship utilization to qualify for the bonus rate on the green energy projects funded under the measure.  On the tax-exempt facility bonds, the measure “… applies Davis Bacon prevailing wage requirements to all proceeds of exempt facility bonds used for construction, alteration or repair of water furnishing facilities, sewage facilities, highway or surface freight transfer facilities, or zero-emissions vehicle infrastructure facilities.”

Industry Recognized Apprenticeship Programs (IRAPs) and Standards Recognition Entities (SREs) Proposed for Formal Rescission

The IRAPs and SREs put in place in the late stages of the Trump Administration are proposed  for formal rescission by the Biden Administration.  In a Federal Register notice posted November 15, 2021, the long-predicted demise of IRAPs is formally set in motion by the Biden Labor Department, with a regulatory notice seeking comments on the effects of the rescission of the IRAP program, which never was finally implemented.  Construction industry registered apprenticeship programs were granted an exemption from the operation of IRAPs and SREs in the final Trump Administration proposal, but the regulations permitted the expansion of IRAPs into construction in the future.  That possibility is now or soon will be foreclosed. 

OSHA Emergency Temporary Standard (ETS) and EO 14042 Federal Contractor and Subcontractor Mandate Undergoing Court Challenge

The OSHA ETS that would compel employers with more than 100 employees to require COVID vaccinations or regular testing has been enjoined by a panel of the U.S. Court of Appeals for the Fifth Circuit. It will undergo further hearing by the Sixth Circuit as a result of the multi-circuit lottery (unless moved) and is enjoined until further court action on the matter. 

The EO 14042 Federal contractor COVID vaccination mandate for firms working on direct Federal contracts and subcontracts of $250,000 is subject to court challenge in Federal courts in Florida, Texas, Georgia, and Missouri. As of November 17, 2021, no temporary or more permanent injunction has been issued against the EO. 

The court challenges to both actions are broad and, in some cases, different.  The OSHA ETS challenges focus on OSHA emergency authority broadly.  The challenge to EO 14042 focuses on the propriety of the Administration’s rulemaking implementing its proprietary action – whether the rules should have been issued by regular FAR public notice and comment rulemaking procedures, as opposed to the less formal Frequently Asked Question issuance of quasi regulations by the Safer Federal Workplace Task Force.  Among the four court challenges to the EO,  State of Texas v. Joseph R. Biden (Southern District of Texas, 21-cv-00309) is the furthest along, with a preliminary hearing held on November 16, 2021, and additional briefing in the matter called for on November 22, 2021. The initial preliminary hearing in State of Florida v. Bill Nelson (Middle District of Florida, 8:21-cv-02524-SDM-TGW) is slated for December 7, 2021. As of this writing, no dates have been set in the cases in Georgia or Missouri.

MCAA will continue to monitor the situation and provide reports as they are warranted. 

SFW Task Force Provides Additional COVID-19 Workplace Safety Guidance for Federal Contractors and Subcontractors

The Safer Federal Workforce (SFW) Task Force issued more detailed compliance guidance for direct Federal prime contractors and subcontractors performing on direct Federal contracts subject to the COVID-19 employee vaccination mandates under the Biden Administration’s Executive Order 14042. Below is a MCAA summary of the “new” Frequently Asked Question guidance issued on November 1, 2021. They are marked “New” on the SFW Task Force website linked below.

Compliance

Q: What steps should a covered contractor take if a covered contractor employee refuses to be vaccinated?

Answer Summary – If the recalcitrant worker has not requested an accommodation, and no such request is pending, then the guidance says the employer should resort to the terms of their employee handbooks or applicable  bargaining agreements for the appropriate disciplinary steps. It refers to the progressive discipline procedures used for Federal personnel for example. During the pendency of the applicable process, the guidance suggests, the worker’s continued presence on the covered workplace must be in compliance with safety protocols for unvaccinated workers.

Q: What steps should an agency take if a covered contractor does not comply with the requirements in the Task Force’s Guidance for Federal Contractors and Subcontractors?

Answer Summary – The answer says the agency should work with contractors who are trying in good faith to meet compliance challenges. On the other hand,  the answer suggests, if the contractor is not taking steps to comply, the agency should consider significant actions, such as contract termination.

Vaccination and Safety Protocols

Q:  If a corporate affiliate of a covered contractor does not otherwise qualify as a covered contractor, are the employees of that affiliate considered contractor employees subject to COVID-19 workplace safety protocols for Federal contractors established through the Task Force Guidance?

Answer Summary – The answer says that if the two entities are in a joint control relation with each other or a third party, then employees of the non-covered affiliate are considered contractor employees when working at a covered worksite.

Q: If the workplace where a covered contractors employees perform work on or in connection with a covered contract is a location owned, leased, or otherwise controlled by a corporate affiliate of a covered contractor that does not otherwise qualify as a covered contractor under Task Force guidance, is the workplace considered a covered contractor workplace?

Answer Summary – Again, assuming a control relationship among the entities, if an employee of a covered contractor is likely to be present during the term of the covered contract at the 3rd party site, then that site is considered a covered contract workplace.

Q: If a covered contractor can access a covered contractor employee’s vaccination documentation, consistent with relevant privacy laws, does the covered contractor need to require the employee to show or provide documentation?

Answer Summary – No, the answer says, if the contractor can access the documentation directly through precious documentation responses, an employer vaccination program record, or a state immunization database.

Q: Do all requests for accommodation need to be resolved by the covered contractor by the time the covered contractor’s employees begin work on a covered contract or at a covered workplace?

Answer Summary – No, the answer says, if the accommodation requests are pending at that time, then the employer must require during the pendency of the resolution of the accommodation that the employee follow the workplace safety protocols for employees who are not fully vaccinated as per the SFW Guidance.

Q: When a covered contractor’s employees are not vaccinated because a covered contractor has provided the employee with an accommodation, what workplace safety protocols must the employee follow while in a Federal workplace?

Answer Summary – The affected agency will determine what protocols apply at that Federal worksite for unvaccinated workers. In general, the answer refers to masking, social distancing and testing procedures. However, the answer says it will amount to a fact-specific assessment by the agency with respect to the individual work circumstances, and notes that some circumstances may not be amenable to any such accommodation.  In any case, the answer states contractors that have unvaccinated workers onsite at a covered Federal worksite must notify the agency contracting officer of which employees have received an accommodation in lieu of vaccination to facilitate that fact-based determination.

Litigation Update

The Vaccination EO 14042 is under challenge by the State of Florida in a lawsuit for a temporary and permanent injunction filed in the US District Court for the Middle District of Florida last week. (State of Florida v. Bill Nelson, Administrator of NASA et al, 8:21-cv-2524, USDC MDFla., Tampa Division).

The complaint is a broad and vigorous challenge to the Administration’s use of the Federal Property and Administrative Services Act preamble authority to prescribe regulations to promote economy and efficiency of Federal contracts. The suit challenges that as a pretext to pursue otherwise inappropriate Federal public health policy.  The suit also challenges the SFW Task Force and OMB exercise of regulatory authority over the ordinary course of procurement regulations vested in the Federal Acquisition Regulatory Council.  The suit asserts the State of Florida’s direct interest in its various Federal contracts with NASA and GSA.

MCAA will report details of the litigation and the scope of any injunction when and if it is issued during the preliminary compliance period.  Also, as to the various compliance procedures and judgments contained in the SFW Task Force Guidance, employers should be aware that generally, collective bargaining over the effects of a new Federal law or regulation is a mandatory subject of bargaining and is not subject to unilateral management implementation. Also, the summary answers above are meant for general communication. The full and complete text of the Guidance should be consulted for complete compliance analysis and planning. However, it also should be noted that some flexible rule of reason compliance standards are suggested in the new FAQs.

OSHA Emergency Temporary Standard Released

On November 4, 2021, the OSHA Emergency Temporary Standard applicable to all employers with 100 or more employees was released. This ETS is separate and apart from the EO 14042 vaccination mandate that applies to Federal prime contractors and subcontractors irrespective of employment  numbers.  The OSHA ETS expressly states that its requirements do not apply to workplaces covered by EO 14042 mandates, as follows:

Which employers are covered by the ETS?

  • Private employers with 100 or more employees firm- or corporate-wide.
  • In states with OSHA-approved State Plans, state-and local-government employers, as well as private employers, with 100 or more employees will be covered by state occupational safety and health requirements.

Which workplaces are not covered by the ETS?

  • Workplaces covered under the Safer Federal Workforce Task Force COVID-19 Workplace Safety: Guidance for Federal Contractors and subcontractors; and
  • Settings where any employee provides healthcare services or healthcare support services when subject to the requirements of the Healthcare ETS (§ 1910.502).

White House Extends Vaccination Deadline Under EO 14042

Also, on November 4th release of the OSHA ETA, the White House briefing notice extended the vaccination deadline under EO 14042 to be concurrent with the ETS deadline – January 4, 2022 – beyond the original EO 14042 vaccination deadline of December 8, 2021, as follows:

Streamlining Implementation and Setting One Deadline Across Different Vaccination Requirements: The rules released today ensure employers know which requirements apply to which workplaces. Federal contractors may have some workplaces subject to requirements for federal contractors and other workplaces subject to the newly-released COVID-19 Vaccination and Testing ETS. To make it easy for all employers to comply with the requirements, the deadline for the federal contractor vaccination requirement will be aligned with those for the CMS rule and the ETS. Employees falling under the ETS, CMS, or federal contractor rules will need to have their final vaccination dose – either their second dose of Pfizer or Moderna, or single dose of Johnson & Johnson – by January 4, 2022. This will make it easier for employers to ensure their workforce is vaccinated, safe, and healthy, and ensure that federal contractors implement their requirements on the same timeline as other employers in their industries. And, the newly-released ETS will not be applied to workplaces subject to the federal contractor requirement or CMS rule, so employers will not have to track multiple vaccination requirements for the same employees.

UA International Training Fund’s Preparedness Plan for In-Person Training

To MCAA members and JATC trustees considering attendance at events sponsored by the International Training Fund:

The Trustees of the UA International Training Fund (ITF) are committed to providing a safe and healthy workplace for all employees, instructors, and students participating in training events sponsored by the ITF.

To ensure safe and healthy training, the ITF has developed and adopted the following Preparedness Plan for in-person training that requires proof of COVID vaccination as a precondition of in-person participation.

The Plan applies to all in-person training events sponsored by the ITF in any location throughout the United States, including the upcoming Pipe Trades Training Conference, as well as Instructor Training Program, International Apprentice Contest and all Regional Training Classes.

Participants in any sponsored ITF event are responsible for complying with all aspects of the Plan.

VIEW PLAN

Biden Administration COVID Vaccination Mandates Update

Below are two items relevant to the Biden Administration’s recent COVID vaccination mandates.


The General Services Administration and the Civilian Agency Acquisition Council (CAAC) issued a broad Federal Acquisition Regulation Class Deviation for direct Federal Government Civilian Agency Contracting Officers to implement President Biden’s Executive Order 14042.

The executive order is for direct Federal prime contracts and subcontracts above the Simplified Acquisition (SAT) dollar threshold of $250,000. The CAAC letter reiterates that Federal agencies are required to include the clause – Far Part 52.223-99 Ensuring Adequate COVID-19 Safety Protocols For Federal Contractors, to be included in:

  • all contracts awarded on or after November 14, 2021 (based on solicitations issued before October 15, 2021) (including new orders issued on or after 10/14 under existing indefinite-delivery contracts based on solicitations issued before October 15th);
  • new solicitation issued on or after October 15, 2021, and new contracts (and indefinite delivery pacts) entered into based on those solicitations;
  • extensions or renewals or options on existing contracts exercised on or after October 15, 2021.

The CAAC Letter also “strongly encourages” (but does not require) Federal agencies to include the COVID-19 vaccination requirement clause in contracts that will be awarded before November 14th on solicitations issued before October 15th  and to include the requirements on prime and subcontracts under the $250,000 SAT.

The clause itself requires covered prime contractors and subcontractors to comply with all guidance, including guidance conveyed through Frequently Asked Questions, as amended during the performance of this contract, for contractor and subcontractor workplace locations published by the Safer Federal Workforce Task Force Guidance at https:www.safefederal workforce.gov/contractors/.

The clause incorporates automatic adoption of yet-to-be issued requirements published by the Federal SFW Task Force.

The clause also clarified that the prime contract flow-down of the requirements applies only to subcontracts above the SAT of $250,000, with the caveat of the strong suggestion of broader application noted above.

It remains to be determined what, if any, further guidance may be issued by the full Federal Acquisition Regulatory Council.

CAAC Letter


Frequently Asked Questions About Affordable Care Act Implementation Part 50, Health Insurance Portability and Accountability Act and Coronavirus Aid, Relief and Economic Security Act Implementation. (CCIIO OG MMRD 1808, October 4, 2021)  The Department of labor, Health and Human Services Administration and Department of Treasury revised and updated their FAQs on the ACA, HIPAA, and CARES Act implementation guidance to address health plan coverage of COVID vaccination expenses, the permissibility of allowing health plan wellness incentives for vaccinations, and the impermissibility of denying health plan eligibility and coverage to unvaccinated participants.

Revised FAQs Part 50

MCAA and the UA Issue Message Supporting COVID Vaccination

MCAA President Armand Kilijian and UA General President Mark McManus issued a message highlighting the importance of the COVID vaccine to protect not only ourselves and our families, but our jobsites, our fellow members and contractors, and our end users.

MCAA and the UA File Joint Comments on Proposal Requiring Contracting Officers to Rate Performance of First-Tier Subcontractors

MCAA and the UA filed joint comments on a recent Department of Defense (DoD) procurement policy change proposal. Under the proposal, DoD contracting officers would be required to rate the performance of first-tier subcontractors on DoD construction contracts. MCAA and the UA support the proposed rules, which will lead to more discerning past performance evaluations of first-tier subcontractors competing for subsequent prime contract awards. MCAA and the UA also call for DoD and Federal Acquisition Regulation (FAR)-wide use of past performance evaluations of first tier subs in all prime contractor responsibility determinations.

DOL’s Jessica Looman Joins the Speaker Lineup for the CEA Legislative & Regulatory Conference

Principal Deputy Administrator for the U.S. Department of Labor’s Wage and Hour Division Jessica Looman has joined the lineup of speakers for the Construction Employers of America (CEA) legislative and regulatory conference on Wednesday, July 21st from 11:00 am – 3:00 pm EDT. The virtual event will focus on key regulatory and legislative issues affecting the union construction industry today. As with previous in-person conferences, the CEA will host both Regulators and Representatives from Congress for their expertise and insight on a variety of topics such as: 

  • The regulatory landscape for Multiemployer Pension Plans based upon enactment of the American Rescue Plan Act (ARPA) of 2021.
  • Department of Labor efforts to address Employee Misclassification.
  • OSHA developments of interest to the construction industry.
  • Infrastructure spending in the Energy and Building Market Sectors and proposed tax measures to fund it.

Who is the CEA?

We are a coalition of seven premier national construction specialty contracting associations, working together to raise awareness among policymakers, opinion leaders, and the general public, about the value of high-quality American construction. CEA engages on national, state, and local public policy initiatives to strengthen the domestic construction industry and provide opportunities for top-quality construction workers to earn the skills they need to command high wages.

Withum Webinar Will Share What All Businesses Need to Know About ERC and PPP

Pandemic legislation has created significant opportunities for small and medium sized businesses. Rules ever changing, the programs have been shaped time and time again. Spend one hour with Withum experts as they detail some of the programs which have been most beneficial to businesses. The free webinar takes place June 28, 2021 from 2:00 pm – 3:00 pm EDT.

Learning Objectives

During this session, we will cover the most up-to-date details on the following:

  • Paycheck Protection Program – Analyze lessons learned and understand best practices and pitfalls to avoid. We will also discuss the current status of loans in review with the SBA.
  • FFCRA Credits – Identify the payroll tax credits available to employers compensating employees for sick and family leave time, as well as updates to the program regarding absences related to employees receiving the vaccine.
  • Employee Retention Credit – Clarify changes in the program rules and regulation, and review of your businesses’ eligibility is a must. Our team will have a detailed discussion on eligibility and the opportunity available. We will also discuss the important consideration of the interplay between the ERC and the PPP Loan Forgiveness Calculation.

We want to ensure that any questions around either of these relief efforts are clarified. Our experts can assist with further calculations and opportunities following the webinar.

Presenters 

  • Frank Boutillette, CPA, CGMA, Partner, Market Leader, SBA Financial Assistance Services
  • Daniel Mayo, JD, LLM, Principal, National Lead, Federal Tax Policy
  • Matthew Walsh, CPA, MS, Lead, SBA Financial Assistance Services
  • Louis Young, CVA, Dealership Services, SBA Financial Assistance Services

REGISTER

Join MCAA & CEA Virtually to Discuss Key Legislative & Regulatory Issues

The Construction Employers of America (CEA), of which MCAA is a charter member, will be hosting this year’s legislative and regulatory conference virtually on Wednesday, July 21st from 11:00 am – 3:00 pm EDT, and it will focus on key regulatory and legislative issues affecting the union construction industry today. As with previous in-person conferences, the CEA will host both Regulators and Representatives from Congress for their expertise and insight on a variety of topics such as: 

  • The regulatory landscape for Multiemployer Pension Plans based upon enactment of the American Rescue Plan Act (ARPA) of 2021.
  • Department of Labor efforts to address Employee Misclassification.
  • OSHA developments of interest to the construction industry.
  • Infrastructure spending in the Energy and Building Market Sectors and proposed tax measures to fund it.

Who is the CEA?

We are a coalition of seven premier national construction specialty contracting associations, working together to raise awareness among policymakers, opinion leaders, and the general public, about the value of high-quality American construction. CEA engages on national, state, and local public policy initiatives to strengthen the domestic construction industry and provide opportunities for top-quality construction workers to earn the skills they need to command high wages.

Legislative and Regulatory Issues and Progress – Prevailing Wage, PBGC Grants, COVID-19 Cost Escalation Relief & More

MCAA’s Government Affairs Committee offers an update on the latest happenings on Capitol Hill, including a big victory for prevailing wage policy, possible upcoming positive administrative reforms in the federal prevailing wage program, a shift in construction workforce policy in MCAA members’ favor, an update on PBGC grants for critical and declining multiemployer pension plans, and MCAA advocacy for COVID-19 pandemic cost escalation adjustment clauses in federal contracts. The committee remains busy protecting our MCAA members’ interests on Capitol Hill and providing members with the latest information through programming like the virtual MCAA/CEA National Issues Conference slated for July 21 from 11:00 a.m. to 3:00 p.m. EDT.

Big Victory for Prevailing Wage Policy

A recent vote in the Senate heralded a big victory for prevailing wage policy, and the first statutory expansion of prevailing wage in related legislation in quite some time. With a 58 to 42 vote on the Cornyn Amendment (Amendment No. 1858) to the Endless Frontier Act (S. 1260), the majority in the Senate extended Davis Bacon prevailing wage standards to domestic computer chip manufacturing construction funded in the measure (some $52 Billion).

Eight Republicans crossed over to the Democratic side, supporting the extension of prevailing wage standards to chip plant construction by opposing the Cornyn Amendment:

  • Senator Roy Blunt (MO) (retiring)
  • Senator Shelley Moore Capito (WVA)
  • Senator Steve Daines (MT)
  • Senator Lisa Murkowski (AK)
  • Senator Rob Portman (OH) (retiring)
  • Senator Marco Rubio (FL)
  • Senator Dan Sullivan (AK)
  • Senator John Kennedy (LA)

MCAA Seeks Positive Administrative Reforms in Federal Prevailing Wage Program

MCAA is working with the Biden Department of Labor (DOL) on considering positive administrative reforms in the federal prevailing wage program.  The Labor department’s Wage and Hour Division Principal Deputy Administrator, Jessica Looman, is invited to make a presentation to the MCAA/CEA Legislative Issues Conference on July 21.

Government Affairs Developments

The Biden Administration’s American Rescue Plan contained the Butch Lewis multiemployer pension reform bailout measure. Under the measure, some 200 or so critical and declining multiemployer pension plans may be eligible to receive some $86 billion or more of Pension Benefit Guaranty Corporation (PBGC) grants. These grants would pay pension benefits and expenses for the next 30 years.

While the new PBGC program is big and expensive, it will no doubt take a lot of pressure off the multiemployer system, which will benefit MCAA member companies. The PBGC regulations are due out by mid-July.

The critical and declining plans are a problem created as much by misadministration of government regulations as anything else, so it’s apt that the government pays for the remedy.

MCAA and the multiemployer reform coalition continue to push for a new plan design – Composite Plans and re-tooled and more expansive Variable Benefit Plans that will tackle and resolve the problem of the contingent liability of employer unfunded vested benefits withdrawal liability.

MCAA Leads Effort to Get COVID Escalation Adjustment on Direct Federal Contracts

MCAA is leading the effort to get a COVID-19 pandemic cost escalation adjustment in direct federal contracts that were bid and awarded pre-COVID and performed after the emergency declaration in March 2020. MCAA also is proposing a new pandemic cost adjustment escalation clause in the Federal Acquisition Regulation (FAR) for future direct federal contracts to eliminate pandemic cost contingencies in bidding and to stabilize costs for the government. Both efforts will have a long-term impact for our members, many of whom are struggling to recover the added cost of continuing work during the pandemic.

Questions about any of this information should be directed to John McNerney.

Legislative and Regulatory Issues and Progress – Tax Credits, Multiemployer Provisions of the ARP & Worker Misclassification

MCAA’s Government Affairs Committee offers an update on the latest happenings on Capitol Hill, including tax credits available to employers under the American Rescue Plan (ARP) and the rescinding of the Trump Administration’s pending regulations that would have relaxed safeguards against worker misclassification. The committee remains busy protecting our members’ interests on Capitol Hill.

ARP Expands Paid Family & Medical Leave Tax Credits

The American Rescue Plan (ARP) has expanded the paid family and medical leave tax credits. The credits include added coverage for collectively bargaining health, pension and apprenticeship costs. If employers voluntarily provide the leave, they may claim the credit before it expires on September 30, 2021.

READ THE IRS FACT SHEET

NCCMP Summarizes the Multiemployer Provisions of the American Rescue Plan

The National Coordinating Committee for Multiemployer Plans (NCCMP) summarizes the ARP provision of the tax credit in its Multi-Elert® on the passage of the American Rescue Plan:

Summary of the Multiemployer Provisions of the American Rescue Plan—Other Provisions
Sections 3131 and 3132—Credit for Paid Sick and Family Leave

In addition to 100% of the qualified sick or family leave wages paid by an employer, employers with fewer than 500 employees may also claim as a tax credit the amounts paid to the participant’s group health plan as well as the portion of the employer’s collectively bargained contributions to a defined benefit pension plan and to a registered apprenticeship program that are allocable to the qualified sick leave wages or qualified family leave wages, subject to certain daily and aggregate limitations. Qualified sick or family leave wages are wages or compensation paid to an employee who is unable to work or telework for certain specified reasons related to the COVID-19 public health emergency.

The Multi-Elert also describes the ARP benefits provisions overall, including primarily the Butch Lewis Act multiemployer pension plan provisions.

READ THE NCCMP MULTI-ELERT

DOL Rescinds Pending Regulations that Would Have Relaxed Worker Misclassification Safeguards

Effective May 6, 2021, the Department of Labor (DOL) rescinded the Trump Administration’s pending regulations that would have relaxed safeguards against worker misclassification under the Federal Fair Labor Standards Act, the Federal wage-and-hour law.

The Biden Administration’s Labor Department solicited comments on the proposed relaxation of the well-settled rules and determined that the hasty Trump Administration changes impermissibly discounted well-established judicial and regulatory precedents in favor of a more general and permissive analysis of formerly proper employee classification criteria. With this well considered judgment, announced May 5, 2021, the Labor Department returns the issue to the status quo before the last-minute Trump Administration changes.

MCAA and the Construction Employers of America commented on the proposed rescission, arguing that the prior Administration’s rulemaking was an expedient measure that threatened to undermine well-established safeguards supporting responsible employer employee classification judgments and workforce investments. However, even with this remedial step, still more needs to be done.

MCAA and a great many other construction industry employer groups have long argued that the subject of worker misclassification is long overdue for a more comprehensive legislative and regulatory overhaul. This Labor Department action is a step in that direction, but MCAA has asserted that Congress should eliminate the long lingering legislative permission for grandfathering misclassification and support an interagency review of the issue in its entirety.

With so much of the country’s employment protections and social and economic policy with respect to health and welfare benefits premised on the proper and responsible adherence to legal worker classification practices, responsible employers and the taxpayers deserve more scrupulous government policy attention to rampant misclassification across all industries and the gig economy.

The tax gains from stemming rampant misclassification abuse could go a long way toward funding the upcoming infrastructure investment program. It would further ensure that work is awarded to responsible contractors, rather than allowing misclassification to spread and thereby continue to incentivize disinvestment in proper workforce classification.

READ THE DOL NEWS RELEASE

Questions about any of this information should be directed to John McNerney.

MCAA’s Advocacy and Political Action Initiatives Are Worthy of Your Ongoing Consideration

To my fellow MCAA members and the leaders of MCAA’s local affiliates,

Effective public policy advocacy and non-partisan political activities go hand-in-hand with a broader suite of association member services at MCAA.

When MCAA’s Board of Directors re-instituted MCAA’s Political Action Committee over 20 years ago, they did so with a renewed commitment to building the profile of pipe trades union-signatory employers’ key role in the industry, and in policy deliberations in Washington, DC.

That foresight and initiative have paid off and will continue to do so into the future with our members’ and local affiliates’ ongoing commitment to that vision.

I and my fellow MCAA Government Affairs Committee members below are fully committed to that vision.

  • Kevin Armistead, Armistead Mechanical, Waldwick, New Jersey
  • Richard Bukovec, Diversified Piping & Mechanical, Inc., Mentor, Ohio
  • David Cannistraro, J.C. Cannistraro, Watertown, Massachusetts
  • Dennis Corrigan, Corrigan Company, St. Louis, Missouri
  • Chuck Daniel, MCA of Maryland, Baltimore, Maryland
  • John Ferrucci, F & F Mechanical Enterprises, North Haven, Connecticut
  • Don Giarratano, Muir-Chase Plumbing, Anaheim, California
  • Alex Hayes, Rock Mountain MCA, Denver, Colorado
  • Mike Miller, Kirlin Design Build, Rockville, Maryland
  • Marc Pittas, The Hill Group, Franklin Park, Illinois
  • Dick Reigles, Reigles Mechanical, Grand Junction, Colorado
  • Richard J. Sawhill, ARCA/MCA, Ontario, California

We ask you to join us in that commitment. Here are some key points to consider.

MCAA Is Playing A Critical Role in Multiemployer Pension Reform

Multiemployer pension reform is in the works – finally. It was a long and arduous road – and there’s more ground to cover. MCAA, together with our partners at the UA, were key and effective players in that process.

Your association has a seat at the table thanks to MCAA members’ commitment to participation in the policy development process and the political activity that goes hand-in-hand with that.

If multiemployer pension reform comes out in our favor, it will be guided in that direction by continuing MCAA participation. Your firm and our industry will be immeasurably improved as compared with what might have been with a failing multiemployer system adversely affecting all of our businesses. Together, MCAA and the UA helped avoid that catastrophe.

MCAA Member Involvement Was Responsible for Other Key Achievements

Looking back, our MCAA member involvement was directly responsible for some other key achievements and direct member benefits over recent years, including some few examples below.

  • Keeping ill-conceived accounting disclosure rules relative to pension liability off our books – and staying vigilant about a recurrence of those problems.
  • Eliminating flow-down withholding taxes on Federal projects and adding some small subcontracting bidding protections for Federal primes and subcontractors.
  • Attaining market tax incentives for green building retrofits.
  • Maintaining prevailing wage standards – key elements of industry reforms.
  • Representing you vigorously in the health policy debate.
  • Actively fighting to maintain high-quality industry apprenticeship training programs.
  • Ensuring prevailing wage and labor law reforms in the coming years strengthen MCAA members’ market share.
  • Advocating for a number of legislative and regulatory reforms to staunch the rampant abuse of worker misclassification in the construction industry.
  • Supporting government initiatives to improve government responsible contractor selection policies for prime contractors and subcontractors.
  • Gaining elimination of reverse auction procurement procedures in Federal construction contract selections.
  • Advocating for collective bargaining and ERISA preemption of state, local and Federal paid leave mandates.

MCAA Continues to Advocate for Our Industry’s Best Interests

Looking ahead, there are larger general trends and market factors that will influence the direction of public policy, including workforce demographic challenges, rapid technological developments, and environmental challenges to our society as a whole and our industry in particular.  All of these trends will have some bearing on public policy choices in Washington, DC. Our MCAA member advocacy program and political action infrastructure must be maintained so that we – MCAA members – maintain our strong position to advocate for our industry’s best interests.

MCAA PAC Needs Your Commitment and Involvement to Keep the Momentum Going

Please consider your role in helping your fellow members shape our future with effective advocacy in Washington, DC. If you want to be part of your industry’s continued competitiveness:

  1. Join our efforts by going to the MCAA PAC website and completing  the prior authorization form to allow MCAA PAC to send you solicitation material.
  2. Reach out to your local affiliate Boards and ask them to do the same on your behalf.
  3. Get your local association directly involved with lawmakers and political decision makers in their home districts, where your voice is heard directly and most effectively.

Call me to discuss how you can get involved.

Best Regards,

Jim Gaffney, Goshen Mechanical, West Chester, Pennsylvania
Chairman MCAA Government Affairs and Political Action Committees

MCAA and Leading Experts Discuss What Recent Multiemployer Pension Reforms Will Mean for Your Company

What do the multiemployer pension reforms in the Butch Lewis Emergency Pension Plan Relief Act of 2021 (signed into law by President Biden in the American Rescue Plan Act of 2021 on March 11, 2021) mean for your company? MCAA’s John McNerney is joined by leading industry experts Earl Pomeroy of Alston & Bird and Josh Shapiro of The Groom Law Group to lay out the details of the law, the questions remaining to be answered in regulations issued by the Pension Benefit Guaranty Corporation in the 1,200 days from enactment, and what it will mean for your plans and the industry overall. Mr. Shapiro and Mr. Pomeroy will also speak about remaining reform items to be addressed in upcoming enactment of Composite Plans and perhaps also new and improved Variable Benefit plan options for trustees to consider.

About the Presenters

Former Congressman Earl Pomeroy, who served in Congress for 18 years, and as a member of the prestigious House Ways and Means Committee, was the lead sponsor of the Pomeroy-Tiberi pension reform proposal as early as 2010. He is currently consulting with MCAA on pension reform issues.

Josh Shapiro is a leading actuarial expert on multiemployer pension issues in Washington, D.C., having served as the research and policy director at the National Coordinating Committee for Multiemployer Plans, and for the past eight years as a pension/actuarial advisor at The Groom Law Group in Washington, D.C. For many years, Mr. Shapiro and Groom Law Group have served as advisors to MCAA on pension and other employee benefits policy issues.

John McNerney is MCAA’s General Counsel. He also serves as executive director of government and labor relations at MCAA, collaborating with other specialty construction employer groups and the United Association to advance legislative and policy positions in MCAA members’ best interests.

MCAA Among Supporters of Bill Strengthening Financial Security for Infrastructure Projects

MCAA is among supporters of legislation reintroduced earlier this week that would increase the financial security of federal infrastructure projects. A recent article in Transportation Today highlights the legislation reintroduced by U.S. Sens. Chris Van Hollen (D-MD) and Mike Rounds (R-SD), along with U.S. Sens. Stephen F. Lynch (D-MA) and Troy Balderson (R-OH), Promoting Infrastructure by Protecting Our Subcontractors and Taxpayers Act of 2021.

Webinar to Focus on American Rescue Plan Act of 2021 Provisions for Multiemployer Pension Plans

Horizon Actuarial Services, LLC, and the Groom Law Group will be co-sponsoring a complimentary webinar on the American Rescue Plan Act of 2021 provisions for multiemployer pension plans. The webinar, which will address how recent law changes will impact multiemployer pension plans in general, will take place Tuesday, March 23 at 12:00PM EDT. A summary of the changes can also be found on Horizon’s website.

Tuesday, March 23, 2021 | 12:00 p.m. EDT

On March 11, 2021, President Biden signed a significant COVID-19 relief package – the American Rescue Plan Act of 2021 – into law. Included in this legislation are several provisions that provide temporary funding relief to multiemployer pension plans, as well as a significant amount of special financial assistance that is available to seriously underfunded plans. The temporary funding relief provisions are broadly available to multiemployer plans, and they allow additional time for plan sponsors to address the investment and other losses incurred in recent years. Significantly underfunded plans can demonstrate eligibility for the special financial assistance based on their funded position in 2020, 2021, or 2022. Initial applications for assistance are due by the end of 2025. Financial assistance will be paid to eligible plans as lump sums that do not need to be repaid, and is intended to keep plans solvent through 2051.

The panelists on this webinar will discuss the development and passage of the legislation, the key funding relief and financial assistance provisions, and the various aspects of the legislation that are not fully clear and may be open to multiple interpretations.

REGISTER TODAY

Important Note: You will receive an email from the Groom Law Group on the morning of March 23rd with the link to access the webinar.

Speakers

  • David Pazamickas – Horizon Actuarial
  • Mariah Becker – NCCMP
  • Michael Kreps – Groom Law Group
  • Jason Russell – Segal Consulting
  • Brigen Winters – Groom Law Group

If you have questions on how the law may impact your specific plan, please contact your Horizon Actuarial consultant.

MCAA & Affiliates Continue Push for COVID Cost Recovery on Direct Federal Construction Contracts

MCAA’s initiative with the MCA of Maryland, the MCA of Metropolitan Washington, the MCA of New York, and the New England Mechanical Contractors Association (NEMCA) is moving ahead with contacts in the House and Senate expanding to seek an add-on proposal in either the next COVID relief measure or possibly on the infrastructure proposal that is expected soon. The proposal is relatively simple – Congress should set up a separate COVID Cost Recovery Fund on direct Federal construction contracts to pay impaired productivity and other COVID direct costs to be administered apart from the affected projects’ budgets. The rationale is that it is inequitable for the government as proprietor of the project to take the full benefit of the fixed-price award pre-COVID and then drive a hard bargain denying full equitable cost impact recovery post pandemic, while at the same time using taxpayer resources to bail out other industries outside of any contractual relationship.

MCAA was able to gain the active support of the New York Tri-State Chapter of the National Association of Minority Contractors backing our initiative with New York City Congresswoman Carolyn Maloney, who is chair of the lead committee of jurisdiction on this issue in the House Oversight and Reform Committee (OGR). NEMCA recently was instrumental in gaining the active consideration of Boston area Congressman Stephen Lynch, a high ranking member on both OGR and the Transportation and Infrastructure Committee, which shares jurisdiction on these issues.