On December 3, AGC, along with 564 trade associations, called on Congress to pass legislation reversing IRS policy that turns promised, tax-free PPP loan forgiveness into a taxable event. The effect of this is to tax a business’s PPP loan forgiveness up to 37 percent. AGC is very engaged in exhorting Congress to include legislation to overturn the IRS Notice in any end of year tax or spending package, and we will continue to provide updates to members.
OFCCP recently announce the release of its new technical assistance guide for small contractors. The guide provides compliance assistance regarding equal employment opportunity obligations for small federal supply and service, construction contractors and subcontractors, as well as and federally assisted construction contractors and subcontractors. The agency considers contractors’ sizes when developing its requirements to consider the burdens on small contractors.
The U.S. Department of Labor’s Wage and Hour Division (WHD) announced that it has launched an education and enforcement initiative in eight Southeastern states to ensure construction companies that work on federal or federally assisted construction projects meet prevailing wage requirements of the Davis-Bacon Act (DBA) and the Davis-Bacon and Related Acts (DBRA).
Applies to PPP loans of $2 Million or More
The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) recently issued two new opinion letters. Of particular interest is opinion letter FLSA2020-16 addressing compensability of employee travel time in certain situations involving construction sites located away from the employer’s principal place of business. Specifically, the letter discusses the compensability of a non-exempt (e.g., overtime-eligible) foremen and laborer’s travel time under the Fair Labors Standards Act (FLSA). An opinion letter is an official document authored by WHD on how a particular law applies in specific circumstances presented by the person or entity requesting the letter. Opinion letters represent official statements of agency policy.
Oregon voters became the first in the nation to decriminalize possession of “hard drugs” and thus making it easier to use illegal substances leading to safety and health implications. In addition, the measure could contribute to the workforce shortage when the industry resumes hiring. Florida voters approved raising the state minimum wage to $15 an hour, joining 8 other states and DC. In another sign of the times, Colorado voters approved a Paid Family and Medical Leave Insurance Program, making it the first state to do so through ballot initiative, and the ninth plus DC with state paid family leave law in the country. There was no paid federal leave law program before the Families First Coronavirus Response Act (FFCRA). The undercurrent in the country could lead other states or Congress to act in a more expansive manner.