MCAA and the UA File Joint Comments on Independent Contractor Status

October 28, 2020

In a joint letter to the Department of Labor (DoL) submitted on October 26, 2020, MCAA and the UA requested that the agency withdraw proposed regulations on independent contractor status under the Fair Labor Standards Act (RIN 1235-AA34).

The joint comments extend a decades long collaboration between the UA and the MCAA on this very important issue that dates back to 1996, when the two organizations worked together on testimony at the House and Senate fiscal committees on the then proposed Section 530 tax law changes to close the worker misclassification loophole (which has yet to be addressed). The UA and MCAA continue to work jointly to address the very intractable and serious tax and workforce standards, and fair competition abuses of tax cheating by unscrupulous employers that misclassify employees as independent contractors.

The most recent joint MCAA/UA comments to the Labor Department on the proposed loosening of the “economic reality” test to judge if workers are covered by the Fair Labor Standards Act seeks a roll back of the proposal and urges DoL to take a much broader approach to effectively address the long-standing and unabated serious abuses of worker misclassification.

In the letter, MCAA President Brian Helm and UA General President Mark McManus state that, “In fact, the DoL proposal is hasty in the extreme, too narrow, unfairly permissive, and misses an opportunity to make significant strides in stemming abuses, rather than narrowing the established DoL economic reality/suffer and permit framework for worker classification analysis, to open up a more lax administration of that standard.”

The MCAA/UA comments go beyond characterizing the problem, which has long since been well documented by myriad studies at the Federal and state levels, and questions why the DoL has chosen to take this hasty and narrow approach at this late stage of the Administration. The joint MCAA/UA comments call for a much broader and long overdue inter-agency approach by affected Federal workforce enforcement agencies to create a more effective remedial approach by all Federal labor and employment and tax enforcement agencies – including issuing industry-by-industry compliance guidance.

In the letter, MCAA President Brian Helm and UA General President Mark McManus strongly assert that, “…the MCAA/UA joint interest in finally and comprehensively staunching the longstanding and persistent scourge of worker misclassification, unfair competition, legal compliance avoidance, and tax cheating by unscrupulous employers in the construction industry – where misclassification goes beyond prevalent to rampant – …is very strong and in perfect parallel with the public interest in maintaining high workforce standards.”

Joint Comments

Related Articles
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.…
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.…
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.…
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.…

Did you know MCAA members can enroll with @ClickSafetyOT and receive 10% off OSHA 10 and OSHA 30 training courses?
https://www.mcaa.org/wp-content/uploads/2021/01/ClickSafety-Partner-Discount-Flyer-MCAA-2021.pdf

Subscribe today for SDS Binderworks and make OSHA hazard communication compliance easy with MCAA member discount prices!
https://www.mcaa.org/wp-content/uploads/2021/01/SDS-BinderWorks-MCAA-Hand-Out_2021-compressed-compressed.pdf

.@FARO_TechInc’s FARO® Focus S 350 Laser Scanners “are really allowing us to send one guy in to a project and capture in a few hours what a team of people used to do over the course of a week...,” said Mark Lamberson CPD, of Limbach Holdings Inc.

http://ow.ly/fobd50GjJBT

Load More...