On May 20, the Federal Highway Administration (FHWA) released a new initiative to permit, on an experimental basis, contractors to utilize geographic, economic, or other hiring preferences on federal-aid highway projects. This “local hire” initiative will be carried out as a pilot program for a period of 4 years (unless extended) under FHWA’s existing experimental contracting authority. AGC is broadly opposed to local hire preference policies. After yesterday’s pilot program release, AGC CEO Steve Sandherr stated, in part: “[T]he problem with local hire programs, however, is that they solve the symptom and not the problem...too many communities have defunded their career and technical education programs and as a result there are often too few local workers with any interest in construction careers or basic skills that would make them qualified to be hired.”

In late April, the Occupational Safety and Health Administration (OSHA) issued updated COVID-19 FAQs related to contractor vaccine policies. Consistent with the Center for Disease Control and Prevention (CDC) messaging, contractors have been recommending—and in some instances mandating—employees receive the vaccine. OSHA’s new interpretation of recordability stemming from adverse reactions to the COVID-19 vaccine when contractors mandate employees take the vaccine, or simply recommend it, has the potential to deter vaccination efforts. AGC is not opposing the requirement for contractors that—at their own discretion—mandate employee vaccination to record adverse reactions on their OSHA 300 Log. However, AGC is concerned when construction owners or clients pass the mandate down to contractors to vaccinate their employees.

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 previous final rule originally was to be effective on March 8, 2021. However, a recent proposal delayed that date to allow the agency “the opportunity to review and consider the questions of law, policy, and fact raised by the rule[s]."

Government- Mandated Project Labor Agreements & Local Hire Requirements

U.S. Treasury Outlines How States Can Spend $350 Billion State & Local Government COVID-Relief

On May 10, AGC filed a Freedom of Information Act request in response to SBA’s delayed decision-making process of the Paycheck Protection Program (PPP) loans as AGC members report they have already waited many months for SBA to act on forgiveness applications for loans over $2 million. SBA continues to hide the difference in the time it requires to process applications for the forgiveness of loans over and under $2M. AGC has learned that SBA has a third-party vendor playing an apparently significant but uncertain role in the processing these applications. While SBA has clarified that it will base its decisions on a “multi-factor analysis” of the “totality of [each] borrower’s circumstances,” the agency has yet to publicly disclose the particulars of that analysis, such as the factors that it weighs, or how it weighs them. As AGC waits for SBA’s response, the association will continue to talk to the agency about the potential for a settlement of its lawsuit filed last December.

Earlier this week, AGC filed a Freedom of Information Act (FOIA), in response to SBA’s delayed decision-making process of the PPP loans as members report they have already waited many months for SBA to act on their applications for the forgiveness of loans over $2M. SBA continues to hide the difference in the time it requires to process applications for the forgiveness of loans over and under $2M. AGC has learned that a private company is playing an apparently significant but uncertain role in the processing of applications for the forgiveness of loans over $2M.

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.