AGC Launches Broad Effort to Increase Transparency of SBA’s Decision-Making Process Going Beyond Lawsuit, AGC Submits Detailed Request for Agency Data

The cost of goods and services used in construction accelerated further in April as more items logged double-digit increases over the past year, according to an analysis by the Associated General Contractors of America of government data released today. Meanwhile, nonresidential contractors struggled with delays in receiving materials and intensifying competition that limited their ability to pass on higher costs. Association officials urged the Biden administration to quickly roll back tariffs and quotas on imported construction materials that are adding to costs and availability problems.

Construction employment was unchanged from March to April as nonresidential contractors and homebuilders alike struggled to obtain materials and find enough workers, according to an analysis by AGC of government data released today. Association officials said the industry’s recovery was being hampered by problems getting stable prices and reliable deliveries of key materials, while the pandemic and federal policies were making it harder for firms to find workers to hire.

The U.S. Department of Labor (DOL) Wage and Hour Division (WHD) finalized its recent proposal to officially withdraw a Trump administration final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA). The withdrawal is effective immediately without any replacement or new guidance and employers are advised to rely on past court decisions and WHD guidance to determine whether those workers are employees under the FLSA or independent contractors. AGC has long called for federal clarification of the independent contractor status and preservation of legitimate independent contractor relationships, such as those that have historically existed in the construction industry.

Would Provide $35 Billion in the Nation’s Water Infrastructure

On April 30, AGC and its coalition partners met with the White House Office of Management and Budget (OMB) to raise concerns about and question the need for a federal Occupational Safety and Health Administration (OSHA) COVID-19 emergency temporary standard (ETS) 14 months into the pandemic. AGC highlighted the conflicting messages delivered by the administration. On the one hand, the administration continues to highlight the significant decline in case rates, hospitalizations, and great progress towards ending the pandemic through vaccination efforts. On the other hand, OSHA remains determined to issue an ETS to address what it calls grave dangers posed to workers, despite construction remaining an OSHA-identified low exposure industry. AGC and its partners also stressed the importance of the Centers for Disease Control and Prevention (CDC) and OSHA aligning their respective protocols if an ETS is to be issued. Confusion remains among employers and employees alike due to conflicts between the April 27 CDC guidance and OSHA’s January 29 guidance. The CDC guidance allows for different protocols for the vaccinated versus unvaccinated. The OSHA guidance provides that the vaccinated and unvaccinated should be treated the same and follow established mask and social distancing requirements.

The U.S. Environmental Protection Agency is working on a new rule related to hexabromocyclododecane (HBCD), a flame retardant chemical that was used from the 1980s until 2017 as an additive to polystyrene to make insulation boards for construction. An EPA risk assessment showed that there is a potential for worker exposure to HBCD particles. EPA has asked AGC to identify small business construction representatives who can advise a panel of government lawmakers on their respective technical and financial abilities to meet clean-up or handling requirements that may be put in place regarding HBCD insulation board. If you are a small business that uses/encounters polystyrene insulation boards in roofing, building envelopes or foundations during construction, renovation or demolition, then AGC is interested in hearing from you. AGC small-business contractors are needed to ensure the Agency takes a fair and balanced approach.

On April 27, the U.S. Environmental Protection Agency (EPA) announced the formation of a new agency council to address per- and polyfluoroalkyl substances (PFAS). In the memo, EPA Administrator Michael Regan also reiterated the agency’s commitment to the 2019 PFAS Action Plan. The chemical can be found in many products, soil, and water. AGC previously supported the 2019 PFAS Action Plan, because it outlined a deliberate approach to review the science and address concerns that arose. The agency is taking action on PFAS under several programs including air, significant new uses, wastewater, drinking water, and Superfund.

Construction Officials Say New Infrastructure Investments, Tariff Relief for Key Construction Materials are Needed to Help Contractors Cope with Continued Economic Impacts of the Pandemic

After delaying the opening of the 2019 EEO-1 Component 1 Data Collections on May 8, 2020, in light of the COVID-19 public health emergency, the U.S. Equal Employment Opportunity Commission (EEOC) has announced that the 2019 and 2020 EEO-1 Component 1 data collection is now open. The EEO-1 is an annual survey that requires all private employers with 100 or more employees and federal government contractors or first-tier subcontractors with 50 or more employees and a contract/subcontract of $50,000 or more to file the EEO-1 report.