House Transportation Committee Considers Environmental Streamlining

On Jan. 5, AGC urged the U.S. Fish and Wildlife Service (FWS) to remove the goal of “net conservation gain” from the Service’s Mitigation Policy and Endangered Species Act (ESA)–Compensatory Mitigation Policy, finalized in late 2016. AGC asserts that that the “improvement” goal is not supported under the ESA; the goal fails to provide a clear limit on how much mitigation is necessary and blurs the line between recommendations and requirements.

On January 4, 2018, following Presidential Executive Order (EO) 13813, the U.S. Department of Labor (DOL) announced its plan to expand access to healthcare through small business health plans. EO 13813, “Promoting Healthcare Choice and Competition Across the United States,” directed the U.S. Departments of Labor, Health and Human Services (HHS), and the Treasury to develop rules to expand association health plans (AHPs), short-term limited duration insurance, and health reimbursement arrangements (HRAs).

On January 5, 2018, the U.S. Department of Labor (DOL) reissued 17 previously withdrawn opinion letters addressing a wide range of topics under the Fair Labor Standards Act (FLSA). 15 of the 17 letters were originally signed off on during the final days of the Bush administration, but were withdrawn by the Obama administration “for further consideration by the Wage and Hour Division” on March 2, 2009, and stated that it would “provide a further response in the near future,” but never did. Instead, the Obama administration stopped issuing these letters altogether, instead releasing broader “Administrator’s Interpretations” that laid out how the department viewed employers’ specific obligations under the law. In June 2017, Secretary Acosta announced that he would reinstate the practice of issuing opinion letters.

AGC of America’s 99th Annual AGC Convention in New Orleans, LA, will feature a session called “State of the (Building Trade) Unions” where the Brent Booker, secretary-treasurer of North America’s Building Trade Unions, will speak. The session is scheduled for Monday, Feb. 26, 3:00-4:30 p.m. All Convention registrants are invited to attend. While organized labor represents a minority of workers in construction, its actions have a significant impact on the industry and on the nation in general, making this session of interest to both union and nonunion contractors and chapters alike.

On Dec. 19, 2017, the U.S. Court of Appeals for the Ninth Circuit became the fourth federal appellate court to expressly reject the U.S. Department of Labor’s (DOL) six-part test for determining whether interns and students are employees under the Fair Labor Standards Act (FLSA). On January 5, 2018, the DOL clarified that going forward, the Department will conform to these appellate court rulings by using the same “primary beneficiary” test that these courts use to determine whether interns are employees under the FLSA.

Republicans’ brief control of the National Labor Relations Board ended with the expiration of Chairman Philip Miscimarra’s term on Dec. 16, 2017. In anticipation of the change, the Board issued several employer-friendly decisions with significant impact. The most high-profile among them is a ruling in Hy-Brand Industrial Contractors that overturns the controversial, AGC-opposed joint-employer standard established in Browning-Ferris Industries.

The AEC industry is fragmented and slow moving. The legal industry, which drives the structural relationships in construction contracts, is even slower to change. The combination has us stuck in the morass of contractual silos that create confrontation. Some wear this as a badge of honor. They follow a similar pathway that has been around for over a hundred years and have a mountain of case law dissecting the corpses of dead projects gone wrong interpreting this approach.

The Business Development Best Practices are an ongoing effort by the AGC Business Development Forum Steering Committee to bring more BD resources and best practices to the AGC membership. Written and developed by industry experts in Business Development, these best practices cover a wide range of topics, from relationship building and sales to marketing and proposals. This month, the Business Development Forum Steering Committee highlights:

On December 14, 2017, in a 3-2 decision by its then Republican majority, the National Labor Relations Board (NLRB) in the Hy-Brand Industrial Contractors case ruled that, to be classified a "joint employer" of another company’s employees under the National Labor Relations Act, a business must have a direct and immediate control over the employees. The decision overturns the Obama Board’s highly controversial and AGC-opposed 2015 ruling in Browning-Ferris Industries and effectively returns the joint employment standard to the prior standard.