The Associated General Contractors of America (AGC) celebrates a significant legal victory in its ongoing efforts to protect members from overreaching federal regulations. On June 24, 2024, the U.S. District Court for the Northern District of Texas in Lubbock granted AGC’s motion for a nationwide preliminary injunction, temporarily blocking AGC-challenged provisions to a rule issued by the U.S. Department of Labor (DOL) expanding coverage of the Davis-Bacon Act.
AGC filed a narrowly tailored lawsuit in federal court against the DOL challenging the agency’s unlawful expansion of Davis-Bacon coverage to truck drivers and to material suppliers owned and operated by general contractors or subcontractors. The association also challenged the operation of law provisions making Davis-Bacon Act requirements applicable to construction contracts even when the prime contract makes no reference the Act. These provisions are part of a sweeping reform of Davis-Bacon regulations that took effect on new contracts issued on or after October 23, 2023.
As the federal court declared, “Defendants engaged in egregious violations of Article II, section 3 of the Constitution, because rather than taking care to faithfully execute the DBA, Defendants instead usurped Congress’ law-making power and attempted substantive amendments to the DBA. Presidents and their agencies act ultra vires and do violence to the Constitution when they attempt to unilaterally amend Acts of Congress to suit their policy choices. Under Article I, section 1 of the Constitution, Presidents and their agencies cannot amend by executive fiat acts of Congress. Doing so violates the Constitution, and this preliminary injunction shall issue to prevent this blatantly unlawful action.”
“Our concern remains that the Department is expanding the scope of the rule well beyond what Congress ever intended,” said Jeffrey Shoaf, the association’s chief executive officer, “this injunction restores the original intention of the Davis-Bacon Act.”
AGC of America was joined by co-plaintiffs Associated General Contractors of Texas, J. Lee Milligan, Inc., and the Lubbock Chamber of Commerce. Robert R. Roginson of Ogletree, Deakins, Nash, Smoak & Stewart P.C., and Fernando M. Bustos of Bustos Law Firm, P.C., served as lead attorneys for the plaintiffs.
More information on the lawsuit is found here and here. AGC’s involvement in the case was made possible thanks to member contributions to the Construction Advocacy Fund.
For more info, contact Claiborne Guy, Director, Employment Policy and Practices, at claiborne.guy@agc.org or (703) 837-5382.