US Department of Labor Proposes Rule to Provide Workers on Federal Service Contracts Right of First Refusal of Employment

Posted by National Alliance for Fair Contracting on

Agency: Wage and Hour Division
Date: July 14, 2022
Release Number 22:-1338-NAT

Implements Executive Order 14055 to promote retention of qualified workers

WASHINGTON – The U.S. Department of Labor will publish a Notice of Proposed Rulemaking on July 15, 2022, to implement the requirements of Executive Order 14055, “Nondisplacement of Qualified Workers Under Service Contracts.” The proposal would benefit workers who perform work on service contracts by generally requiring that they receive an offer of employment from a successor contractor to a position for which they are qualified.

EO 14055 requires that contractors and subcontractors performing work on covered federal service contracts (i.e., most SCA-covered contracts over $250,000), must, in good faith, offer service employees employed under the predecessor contract a right of first refusal of employment on the successor contract. By doing so, the order seeks to prevent displacement of skilled workers in the federal services workforce. The proposed rule would establish standards and procedures for implementing and enforcing the nondisplacement protections under the order.

The department anticipates the proposed rule would if finalized provide economic benefits and enhanced efficiency in covered contracts by promoting the retention of experienced workers, thereby reducing the disruption in the delivery of services during the transfer of covered federal service contracts, maintaining physical and information security, and providing the federal government with an experienced and well-trained work force familiar with government personnel, facilities and requirements.

Specifically, the NPRM proposes to do the following:

  • Establish standards and procedures for implementing and enforcing Executive Order 14055.
  • Specify contracting agency and contractor obligations, respectively, under the Executive Order.
  • Establish an investigation process that protects workers from displacement and is familiar to federal contractors.
  • Identify sanctions and remedies that may be imposed by the department under the Executive Order.

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FACT SHEET: White House Announces over $40 Billion in American Rescue Plan Investments in Our Workforce – With More Coming

Posted by National Alliance for Fair Contracting on

The White House – Briefing Room

July 12, 2022

Vice President Kamala Harris to deliver remarks at White House Summit and reinforce call for state and local leaders to invest American Rescue Plan funds to help more Americans secure good-paying jobs

On Wednesday, the White House will announce that over $40 Billion in American Rescue Plan funds have been committed to strengthening and expanding our workforce. White House officials will highlight top American Rescue Plan workforce best practices from Governors, Mayors, and County Leaders across the country, and call on more government officials and private sector leaders to expand investments in our workforce. Vice President Kamala Harris will deliver remarks kicking off a half-day White House Summit. Since passage of the law, states, localities, community colleges, and local organizations have leveraged American Rescue Plan resources to deliver training, expand career paths, encourage more Registered Apprenticeships, provide retention and hiring bonuses in critical industries, and power efforts to help underserved Americans and those who face barriers to employment secure good jobs. These investments in the workforce – along with the American Rescue Plan’s direct payroll support that has saved or restored jobs across a broad set of industries – have contributed to a record 9 Million jobs added since President Biden took office in the fastest and strongest jobs recovery in American history.

The half-day White House Summit on the American Rescue Plan and the Workforce will feature remarks by Vice President Harris and Secretary of Labor Marty Walsh, a session on state American Rescue Plan workforce investments with North Carolina Governor Roy Cooper and Pennsylvania Governor Tom Wolf, as well as panels with Mayors, County Leaders, and Labor and Community Leaders on their model American Rescue Plan workforce programs. The Summit will focus on three major areas of American Rescue Plan investment:

1. Building a Diverse and Skilled Infrastructure Workforce: President Biden and Vice President Harris have launched the Administration’s Infrastructure Talent Pipeline Challenge to encourage immediate partnerships by the public and private sectors to ensure we have the diverse and strong workforce needed to help rebuild our infrastructure and supply chains here at home with the Bipartisan Infrastructure Law. Today’s session will focus on innovative programs to meet this challenge like the DC Infrastructure Academy, with a special focus on Pre-Apprenticeship programs funded by the American Rescue Plan. Pre-Apprenticeship programs play a critical role in diversifying the talent pipeline by training, placing, and retaining workers through Registered Apprenticeships – which the North America’s Building Trades Unions (NABTU) has cited as having a return on investment for employers of as much as $3 for every $1 invested. …

2. Strengthening Our Care and Public Health Workforce: The pandemic exposed the fragility and importance of our care economy. As part of an unprecedented commitment to a stronger care workforce, the American Rescue Plan contains significant investments in public health and the care economy that will help provide better pay and career opportunities for care workers and make it easier for workers with child and elder care responsibilities to join and stay in the workforce. U.S. prime-age labor force participation has fallen behind that of its competitors, in part due to lack of family friendly policies. Studies show that access to care can be an important determinant of whether workers are able to join or remain in the labor force. Millions of families rely on paid child and elder care to work, while millions more struggle to afford or find available care. The demand for child and elder care remains high and will only grow, with a projected need for over a million additional home health care workers over the next decade. Studies have shown that quality pathways for nursing aides leads to better outcomes for patients and workers. The American Rescue Plan is helping deliver supports for quality pathways for these essential jobs. …

3. Expanding Access to the Workforce for Underserved Populations: American Rescue Plan funds are being used to recruit more Americans facing barriers to employment – homelessness, disability, prior criminal justice involvement – and giving them pathways into the workforce. More than 600,000 people leave prison every year and confront significant challenges in accessing and sustaining stable, meaningful employment – a 2018 study estimated that formerly incarcerated individuals experience an unemployment rate of over 27 percent, exponentially higher than the overall national unemployment rate. Investments in expanding access to the workforce strengthen our economy by increasing labor force participation and tapping into the potential of more Americans, and research shows that certain programs – such as comprehensive reentry programs and summer youth employment programs – can significantly reduce crime. …

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New York Construction Wage Theft Law: Prime Contractors Responsible for Subcontractor’s Failures

Posted by National Alliance for Fair Contracting on

Friday,  July 1,  2022

The scope for liability related to employee wage claims has changed dramatically for contractors and subcontractors operating in New York under a new law that shifts wage payment obligations to prime contractors.

New York Governor Kathy Hochul signed into law NY State Senate Bill S2766C, which is intended to reduce wage theft claims and amend wage theft prevention and enforcement in the construction industry within the state, on January 25, 2022, and the new law is effective retroactively to January 4, 2022.

The Legislature proposed this amendment to existing wage theft law to increase the likelihood that allegedly exploited workers in the construction industry will be able to secure payment and collect unpaid wages and benefits for work already performed by shifting the ultimate payment obligation to prime contractors.

Prior to the new law, a worker could only bring a private lawsuit for alleged unpaid wages (including overtime and fringe benefits) against their direct employer. The New York State Assembly asserted that this was a major issue in the construction industry and that subcontractors hid assets, changed their corporate identities, or took part in other alleged unscrupulous practices to avoid liability and make themselves judgment-proof from a potential wage theft action.

The New Standards
There are two sections to the new law. Section one pertains to construction industry wage theft and is codified under NY CLS Labor § 198-e. Pursuant to this new section, a construction contractor, as defined within, would assume liability for any unpaid wages, benefits, damages, and attorney’s fees related to a civil or administrative action by a wage claimant or the Department of Labor against a lower tier subcontractor.

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US Department of Labor Launches Android Timesheet App for Workers, Employers to Record Work Hours, Overtime, Breaks; Compute Wages

Posted by National Alliance for Fair Contracting on

Agency: Wage and Hour Division
Date: June 30, 2022
Release Number: 22-1336

Empowers workers, provides valuable resource for employers

WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division and Office of the Chief Information Officer today launched an app for use on Android devices that helps track work hours, break time, overtime hours and calculates wages due. The department previously launched the iOS version of the division’s Timesheet App.

The Timesheet App allows workers to ensure all their hours of work are recorded, including those hours when they telework, travel, perform pre- or post-shift work, or log-in while on-call. Workers can maintain a record of their work hours on the app to ensure their pay records are correct or to use if a pay dispute arises.

For employers, the app helps ensure that up-to-date timekeeping information is easily accessible in one location on their mobile device. Whether employees are paid hourly, by salary or by the piece, employers and employees can use this app to enter all relevant data and calculate the wages due. The app also performs detailed earnings calculations, enabling users to select from several pay frequency options depending on that day’s work. The app also allows extended commenting capabilities, facilitating more effective communication between employees in the field and their employers.

“By empowering workers with our Timesheet App, we are helping to prevent wage and hour violations before they occur,” said Acting Administrator of the Wage and Hour Division Jessica Looman. “This app allows workers – particularly those who may be vulnerable to wage theft – to track their hours and earnings and obtain help when they need it.”

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Prevailing Wage Law Added in Anne Arundel County, Maryland

Posted by National Alliance for Fair Contracting on

July 1, 2022

Prevailing Wage Law

Beginning with contracts executed on July 1, 2022, the Prevailing Wage and Local Hiring Law applies and is patterned after the Federal Davis-Bacon and State of Maryland’s prevailing wage laws. See Anne Arundel County Bill 72-21. It requires the prevailing wage be paid to workers on County-financed construction contracts as required by Anne Arundel County’s Laws; and also adds local hiring requirements as applicable. The prevailing wage rate is the rate paid for comparable work in the private sector within the County. The County’s Wage Determinations are subject to the State of Maryland Wage Determination rates for Anne Arundel County for Highway Construction and/or Building Construction. Job classifications not listed, Vendors will be required to request a rate determination with the Request for Additional Wage Rates from the Maryland Division of Labor and Industry. In the event of a conflict between the County prevailing wage and local hiring statutes, the statute shall control.

It is the responsibility of each contractor and bidder submitting a quote or solicitation to Anne Arundel County to read, certify and attest to the County that they have read and agree to be bound by the prevailing wage and local hiring requirements of the County, including these guidelines, and agree to be bound to them. An affidavit must be provided attesting to the same in such form and substance as required by the County upon demand as an incorporated requirement to any contract or agreement.

In the event the state or federal prevailing wage law applies, the requirements of Maryland state law or federal law shall apply, provided however that local hiring requirements may still also concurrently apply. If the state prevailing wage applies, additional requirements as set forth in COMAR and state statute will be applicable including, but not limited to, notices to independent contractor and withholding of last payments for contracts until a certification and attestation is received by the County evidencing that all employees and contractors have been paid in accordance with state prevailing wage requirements.

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Why the Infrastructure Investment and Jobs Act is good economics

Posted by National Alliance for Fair Contracting on

JUNE 30, 2022
AUTHORS: Michelle Holder & Shaun Harrison

Overview

President Joe Biden, in November 2021, signed the Infrastructure Investment and Jobs Act into law, providing $1.2 trillion in new government investments to create millions of jobs, increase U.S. economic competitiveness abroad, and help address the climate crisis. The multiple provisions of the law are now or will soon:

  • Create hundreds of thousands of jobs within the transportation sector, with investments in passenger and freight rail, bridges, roads, airports, ports, and public transit
  • Guarantee safe drinking water by eliminating the nation’s lead-tainted service lines, especially in disadvantaged communities that need refurbishing the most
  • Reduce supply chain bottlenecks to help ease inflation and lower the cost of goods and services
  • Build a national network for electric vehicle charging stations
  • Manufacture solar panels, wind farms, batteries, and electric vehicles to help address climate change
  • Make high-speed internet affordable and accessible

These much-needed investments are not only delivering significant macroeconomic benefits now, and will continue to do so well into the future, but also potentially addressing longstanding economic inequalities. Indeed, the new infrastructure investments and the jobs created by these investments can reduce these inequalities, increase unionization, and address climate change because they rest on sound economic principles.

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North America’s Building Trades Unions and Ørsted Agree To Build an American Offshore Wind Energy Industry With American Labor

Posted by National Alliance for Fair Contracting on

Wed, June 29, 2022 | Yahoo Finance

A first in the U.S., the National Offshore Wind Agreement sets industry on a course to build an equitable offshore workforce with family-sustaining careers

WASHINGTON, June 29, 2022 /3BL Media/– Today, North America’s Building Trades Unions (NABTU) and Ørsted, the U.S. leader in offshore wind energy, announced a Project Labor Agreement (PLA) to construct the company’s U.S. offshore wind farms with an American union workforce. A first-of-its-kind in the United States, the National Offshore Wind Agreement (NOWA) sets the bar for working conditions and equity, injects hundreds of millions of dollars in middle-class wages into the American economy, creates apprenticeship and career opportunities for communities most impacted by environmental injustice, and ensures projects will be built with the safest and best-trained workers in America. Authorized by 15 International Union Presidents and their local affiliates, the NOWA covers all of Ørsted’s contractors and subcontractors that will perform offshore windfarm construction from Maine down to Florida.

“The signing of this unprecedented agreement is historic for America’s workers and our energy future. NABTU’s highly trained men and women professionals have the best craft skills in the world. This partnership will not only expand tens of thousands of career opportunities for them to flourish in the energy transition but also lift up even more people into the middle-class,” said Sean McGarvey, President of NABTU. “The constant drumbeat of public support for unions being important to maintain and build the middle class helped secure this momentous achievement. We commend Ørsted, AFL-CIO President Shuler, the Biden Administration and many Congressional leaders for their help and support to make today’s signing a reality and for setting forth a new framework for middle-class job creation in all energy sectors.”

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Contra Costa DA’s Office and U.S. Department of Labor announce partnership to combat wage theft

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The Press.net | June 24, 2022

Contra Costa District Attorney Diana Becton and U.S. Department of Labor Assistant District Director for San Jose Alberto Raymond have agreed to combat wage theft and protect workers’ rights.

Wage theft affects victims in various ways – and at all income levels. Some workers are denied overtime or are paid less than the minimum wage per hour. Some employers also refuse to pay bonuses, vacation pay, or reimbursement of business expenses.

According to investigations by the Department of Labor’s Wage and Hour Division in 2021, U.S. workers were denied over $230 million in back pay.

The DA’s Office will be devoting resources to prosecute criminal wage theft cases to curtail labor trafficking, unfair business practices, payroll tax evasion, and wage and hour violations. To do this, District Attorney Becton will create a Workplace Justice Unit that’s committed to a fair and equitable workplace.

Becton noted, “While the DA’s Office and the Department of Labor have had an informal relationship on human labor trafficking and wage theft cases since 2014, this (deal) marks the start of a formal five-year partnership to continue our efforts to seek justice for victims of crime.”

Wage theft is a felony punishable by up to three years in jail. Employers caught stealing from their employees may be personally liable for unpaid wages and face criminal asset forfeiture actions, according to the U.S. Department of Labor Wage and Labor Division fiscal year 2021 data.

In addition to investigating and prosecuting cases, both agencies will conduct community outreach programs to inform the public about reporting wage theft — as well as provide resources for employers to help them follow labor and payroll tax laws.

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Illinois’ solar industry is looking to train a new generation of clean-energy workers

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By Jenny Whidden | Daily Herald – June 23, 2022

With Illinois looking ahead to its goal of 100% renewable energy by 2050, organizations are working to secure a workforce that is ready to install and maintain clean energy infrastructure, including solar arrays.

The passage of the Climate and Equitable Jobs Act last fall essentially pushed up Illinois’ previous goal of 25% renewable energy by 2025, setting a more ambitious target of 40% by 2030. With the state generating just 11% renewable electricity as of 2020, according to the U.S. Energy Information Administration, stakeholders say they are preparing to train a new generation of energy workers to respond to the lofty legislation.

“Given the significant amount of clean energy opportunities in the state, we certainly are going to need an expanded workforce,” said Lesley McCain, executive director of the Illinois Solar Energy Association. “The solar industry is open for business. We are hiring.”

Solar energy most recently accounted for 0.93% of the state’s electricity, creating about 5,200 jobs, according to the Solar Energies Industries Association.

One organization that is looking to ramp up workforce training in the solar space is the Mid-America Carpenters Regional Council, the state’s largest carpenters union.

The union’s four-year apprentice program provides solar panel installation training to its apprentices and collaborates with contractors to build solar projects throughout the state.

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The Aftermath: Developments from the 2022 Session of the Connecticut General Assembly Affecting Employers

Posted by National Alliance for Fair Contracting on

June 22, 2022
JD Supra

The 2022 Regular Session of the Connecticut General Assembly concluded on May 4, 2022.  While not as groundbreaking as the two last full legislative sessions, and while many far-reaching bills that emerged from committee were not passed by the legislature, important bills regarding employee free speech (i.e., the much vaunted “captive audiences” legislation) and employment protections with respect to domestic violence were enacted. …

PREVAILING WAGE ENFORCEMENT

Public Act 22-17 (“An Act Concerning Wage Theft”) authorizes (as of July 1, 2023) the Connecticut Commissioner of Labor to issue increased fines and citations (i.e., $5,000 per violation) to contractors and subcontractors who violate the state’s “prevailing wage” laws. The Act requires the Commissioner to maintain a list of contractors/subcontractors that during the three preceding years violated the prevailing wage laws or entered into a settlement with the Commissioner to resolve such claims. For each contractor/subcontractor on this list, the Commissioner shall record: 1) The nature of the violation; 2) the total amount of wages and fringe benefits making up the violation or agreed upon in any settlement; and 3) the total amount of civil penalties and fines. The Commissioner shall review the list each year for the preceding rolling three-year period and may refer for debarment any contractor/subcontractor that committed a violation during this period. The Commissioner shall refer for debarment any contractor/subcontractor that entered into one or more settlement agreements where the total of all settlements within the period exceeds $50,000 in back wages or fringe benefits or civil penalties or fines. Any such contractor/subcontractor may request a hearing before the Commissioner to contest such a finding.

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