Government Shutdown Averted: Continuing Resolution Prohibits New Starts for Federal Construction Projects
the House and Senate passed a continuing resolution (CR) to keep the government
operating through Dec. 9. The CR was necessary as Congress has once again
failed to enact any of the 12 annual appropriations bills before Sept. 30. The
CR, which largely funds government operations at fiscal year 2016 levels,
prohibits new starts for any federal construction projects and fails to provide
the increase in federal highway and transit funding that was authorized through
the FAST Act for fiscal year 2017. Additionally, the CR did not include many of
the AGC-supported policy riders. However, AGC will continue to advocate for enactment
of fiscal year 2017 funding bills that end the prohibition on new starts for
federal construction projects, provide increased funding for federal
transportation programs and include AGC-supported policy riders. Congress will
have to refocus on completing the annual funding bills when they return to
Washington, DC after the November elections.
For more information, contact Sean O’Neill
at firstname.lastname@example.org or (202) 547-8892.
Return to Top
AGC-Supported WRDA Bill Overwhelmingly Passes House
The House of
Representatives passed (399-25) the AGC-supported Water Resources Development Act (WRDA) of
2016. Among other water
resources projects, the House WRDA bill
authorizes roughly $5 billion in funding for U.S. Army Corps of Engineers Civil
Works projects, including navigation (dredging, locks), flood control (levees),
hydropower (dams), recreation (parks), and water supply. The House Bill also
includes $300 million for the Great Lakes protection measures and $170 million
to clean up Flint, Michigan's contaminated drinking water. The Senate passed
its WRDA bill on Sept. 15. The House
and Senate will likely hold a conference on the two WRDA 2016 bills after the
elections in November. AGC will continue to pursue passage of WRDA in both the
House and Senate and fight for all
AGC priorities in the bill through conference and presidential
information, contact Jordan Howard at email@example.com
or (703) 837-5368.
Return to Top
New EEO-1 Report Finalized; First Report Due March 2018
On Sept. 29, the U.S. Equal
Employment Opportunity Commission (EEOC) announced that starting March 2018, it
will collect summary employee wage and hours-worked data from some employers. Earlier
this year, AGC submitted comments to both the EEOC and the Office of Management
and Budget explaining that the collection of wage and hours-worked
data is not necessary because better tools already exist to assist with
compensation benchmarking. Additionally,
AGC argued that national wage data is useless for benchmarking purposes in
construction and government analysis will not account for a wide variety of
factors used to determine compensation.
Employers – including federal
contractors and subcontractors – with 100 or more employees will report summary
pay data using the new form. Federal contractors and subcontractors with 50-99
employees will not report summary pay data, but they will continue to report
employees by job category as well as by sex, ethnicity, and race. Employers with
99 or fewer employees and federal contractors and subcontractors with 49 or
fewer employees will not be required to complete the EEO-1 report as is current
practice. Federal contractor and
subcontractor data will be shared with the Office of Federal Contract
Compliance Programs. Employers are
required to continue using the existing form until March 2018, when 2017 data
will be reported. Visit the EEOC’s website for a sample of the new form.
Sheet for Small Businesses and a question
and answer document can be
found on the EEOC’s website. For
additional information and resources, visit AGC’s Labor &
HR Topical Resources website. The primary category is “EEO.”
For more information, contact Tamika Carter
at firstname.lastname@example.org or (703) 837-5382.
Return to Top
House Passes AGC-Supported Legislation Delaying Overtime Rule, Enactment Unlikely
Department of Labor’s rule changing
the Fair Labor Standards Act (FLSA) overtime regulations by doubling the
standard salary threshold for exempt employees – from $23,660 per year to
$47,476 per year goes into effect on Dec. 1. AGC has opposed the rule because the
increase is too much for a contractor to absorb at once, the threshold failed
to account for lower wage regions and employers cannot unilaterally raise
salaries. AGC also is concerned employers will be forced to take drastic
measures to comply with the rule that will result in them reclassifying
impacted workers, limiting weekly hours to no more than 40, limiting fringe
benefits, eliminating some positions, or transitioning some positions to part
the House passed Regulatory Relief for Small Businesses, Schools, and
Nonprofits Act (H.R. 6094) which would delay the
effective date of the Overtime Rule by six months. However, the President has
issued his opposition to the bill and the Senate will unlikely act before the
rule is set to go into effect on Dec. 1, absent a successful legal challenge to
For more information, contact Jim Young at email@example.com or (202) 547-0133.
Return to Top
DOL Issues Final Rule Implementing Paid Sick Leave Executive Order
Department of Labor (DOL) today released its final
rule to implement Executive
Order 13706, Establishing Paid Sick Leave for Federal Contractors.
The final rule requires contractors with direct federal contracts and
their subcontractors to provide employees working on or in connection with such
contracts up to seven days (56 hours) of paid leave annually for sickness and
submitted extensive comments
regarding the DOL proposed rule and testified
before Congress on the significant statutory and practical compliance problems
the executive order presents for the construction industry. AGC will
review the final rule and provide more information on this development for its
members in the coming days. In the interim, a few answers to some questions on
this final rule include:
- What types of contracts will require this new mandate?
This mandate will apply only to direct federal agency contracts (e.g.,
U.S. Army Corps of Engineers, U.S. Naval Facilities Engineering Command,
U.S. General Services Administration, U.S. Department of Veterans Affairs
contracts). The mandate does not apply to contracts issued by state
government agencies, like state departments of transportation, even if
they are federally funded.
- What types of employees are covered? Employees who
perform work on or in connection with a contract governed by the
Davis-Bacon Act or Service Contract Act must receive at least one hour of
paid leave for every 30 hours worked. This includes employees who are
exempt under the Fair Labor Standards Act.
An exemption applies to employees who perform work in connection
with covered contracts (but are not directly engaged in specific work
called for by the contract) that amounts to less than 20 percent of their
work hours in a given week.
- When will this mandate be included in direct federal
contracts? Solicitations issued on or after Jan. 1, 2017, that result
in new federal contracts will include the mandate, assuming the Federal
Acquisition Regulation (FAR) Council completes a rulemaking and issues a
FAR clause for this mandate before that date. Special timing applies to implementation
for workers covered by collective bargaining agreements.
- How will flow-down of this mandate work to
subcontractors? Federal prime contractors must include the applicable
contract clause in its subcontracts and require, as a condition of
payment, that subcontractors include the contract clause in any lower-tier
subcontracts. The prime contractor and any upper-tier contractor are
responsible for compliance by any subcontractor or lower-tier
subcontractor with the requirements of the executive order.
Further analysis and resources will be
information, contact Denise Gold at firstname.lastname@example.org
or Jimmy Christianson at email@example.com.
Return to Top
Minimum Wage for Federal Contractors Increases to $10.20
20, the U.S. Department of Labor’s Wage and Hour Division (WHD) published a notice in the Federal Register
announcing a minimum wage increase of $0.05 to $10.20 per hour for direct
federal contracts and subcontracts covered by Executive Order 13658.
Federally assisted contracts are not affected. The rate goes into effect
on Jan. 1, 2017.
Executive Order mandated that the Secretary of Labor determine a new minimum
wage annually, based on the annual percentage increase in the Consumer Price
Index for urban wage and clerical workers. Notice is required to the public at
least 90 days before the new wage goes into effect each year.
workers include those whose wages are governed by the Davis-Bacon Act , the
Service Contract Act, and non-exempt workers whose wages are governed by the
Fair Labor Standards Act (FLSA) for all time spent directly supporting a
covered contract. FLSA-covered workers who do not spend at least 20
percent of the workweek directly supporting a covered contract are
contractors with existing projects or awards are entitled to an adjustment by
federal agencies if the annual inflation increase was not covered by the existing
contract or award.
For more information on Executive Order
13658 including AGC’s impact on the final rule, click here or contact Tamika Carter at firstname.lastname@example.org or (703) 837-5382.
Return to Top
AGC Provides More Information on SBA’s new Mentor-Protégé Program
Thursday, Oct. 6 | 2:00-3:30 p.m. EDT
construction contracting marketplace faces the potential for a dramatic change as
a result of a new U.S. Small Business Administration (SBA) rule on an expanded mentor-protégé program for small
businesses. Register now for a complimentary webinar for AGC members to learn about what all
federal contractors—big and small—need to know about the new SBA mentor-protégé
program & other small business changes. These new regulations expand the
SBA’s Mentor-Protégé Program to all small businesses. This will translate into
more opportunities for large and small construction contractors to form joint
ventures and bid on small business set-aside work. Topics explained:
Potential Impacts of this New Program on Federal Contracting and Your
- Basics of
the New SBA Mentor Protégé Program;
Contractors Should Know Before Participating in the New SBA Mentor Protégé
- How will SBA
Handle Applications for the New Mentor Protégé Program; and
- The Changes
to Small Business Subcontracting Plans and its Impact on Large and Small Businesses.
The SBA will begin
accepting applications for the All Small Mentor Protégé Program on October 1, 2016. To read AGC’s analysis of the rule click here.
For more information, contact Jordan
Howard email@example.com or
Return to Top
Autonomous Vehicles, Cybersecurity, Construction Technology Developments, & More
AGC Highway and Transportation Construction Conference | November 3-5 | Phoenix, AZ
Highway and Transportation Construction Conference will feature all the
cutting edge subjects that will impact the highway and transportation market
over the next several years. How will autonomous vehicles impact road
construction? What’s the latest in machine guidance systems and other
technology developments? Is your company safe from ransomware, hacking and
other cyber threats?
fellow highway, transit and bridge contractors and get up to date at the 2016
Highway and Transportation Construction Conference (formerly the Highway
Contractors Conference) November 3-5, 2016 in Phoenix, Arizona at the JW
Marriott Desert Ridge Resort.
For more information, visit meetings.agc.org/highway or contact Brian Deery at firstname.lastname@example.org or (703) 837-5319.
Return to Top