HR - Construction Industry

Welcome to We get work™ and The Year Ahead 2024 podcast series.

FAR Rule Implements EO-Mandated Use of Project Labor Agreements on Large Federal Construction Projects

The lines of liability may not follow construction contract relationships, and a general contractor (GC) can be held liable for the safety and health violations of subcontractors on the worksite. While the Occupational Safety and Health Review Commission has found a GC’s lack of knowledge of the alleged violations justified vacating citations against the GC, the Occupational Safety and Health Administration (OSHA) continues to cite GCs in these situations.

The Federal Acquisition Regulatory Council (FAR Council) has issued a final rule establishing a project labor agreement (PLA) requirement for contracts that meet the definition of federal “large-scale construction projects” that are estimated to cost the U.S. government at least $35 million. The new rule goes into effect Jan. 22, 2024.

Partner and vice chair of the firm’s Employment and Labor practice group, Scott R. Green, sat down with Construction Dive to discuss the recent increase in charges of unfair labor practices and what contractors should keep in mind. According to the National Labor Relations Board (NLRB), unfair labor practices charges are up 10% and union petitions are up 3% in the 2023 fiscal year.

According to the national construction industry trade association Associated Builders and Contractors, construction labor demands are high. 

According to the national construction industry trade association Associated Builders and Contractors, construction labor demands are high. The construction business pays well and offers great opportunities for progression. The traditionally male-dominated industry has struggled, however, to convince women to join its workforce.

With the Office of Federal Contract Compliance Programs (OFCCP) increasing the number of construction contractors it audits, construction employers should monitor OFCCP’s regulatory requirements for construction contractors, the new Mega Project Program, and OFCCP’s June 2023 audit list.

Despite the potential growth due to the Infrastructure Investment and Jobs Act of 2021 and the CHIPS and Science Act of 2022, the U.S. Equal Employment Opportunity Commission has identified discrimination, harassment, and the lack of gender and racial diversity in the construction industry as challenges to diversity and inclusion efforts in the industry.

The federal government’s focus on the construction industry is growing as more construction companies benefit from the Infrastructure Investment and Jobs Act (IIJA). The IIJA was signed into law by President Joe Biden on Nov. 15, 2021, and is funneling millions of dollars into infrastructure improvement projects.

In its report, “Building for the Future: Advancing Equal Opportunity in the Construction Industry,” the U.S. Equal Employment Opportunity Commission (EEOC) identifies the challenges to diversity and inclusion in the industry and promises to take steps, including releasing industry-specific technical assistance for employers, unions, and workers, to enhance diversity and inclusion.

The National Labor Relations Board (NLRB) has made finding independent contractor status harder under the National Labor Relations Act. The Atlanta Opera, Inc., 372 NLRB No. 95 (2023). This decision may significantly affect business in the construction industry, where employers frequently confront the dilemma of how to classify their work relationships.

Construction and extraction occupations accounted for the second highest number of occupational deaths out of the total 5,190 fatal work injuries recorded in the United States in the 2021 calendar year, according to the Census of Fatal Occupational Injuries, part of the Bureau of Labor Statistics (BLS) Occupational Safety and Health Statistics program. This marks an 8.9% increase from the 4,764 fatal work injuries reported in 2020.

Top leaders of the Occupational Safety and Health Administration (OSHA) have detailed new and upcoming enforcement efforts to protect “vulnerable workers” (i.e., immigrant, minority, female, and lower-paid) who may be more vulnerable to workplace hazards.