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Nonresidential Construction Employment Ends 2017 on a High Note

The nonresidential construction sector added 11,800 net new jobs in December, representing nearly 10 percent of the nation’s jobs created during the month, according to an Associated Builders and Contractors (ABC) analysis of data released today by the Bureau of Labor Statistics. The nation’s overall construction sector added 30,000 net new jobs in December, a 0.4 percent month-over-month increase.

Construction easily embodies the most positive news emerging from today’s national unemployment report. Although both nonresidential building construction (-1,300 net jobs) and heavy and civil engineering (-700 net jobs) were down for the month, job gains were driven by nonresidential specialty trade contractors (+13,800 net jobs). Year-over-year construction employment is up by 210,000 positions, the most since September 2016.

The construction industry unemployment rate, which is available only on a nonseasonally adjusted basis, increased by 0.9 percentage points and now stands at 5.9 percent. The unemployment rate for all nonfarm industries—a figure that is seasonally adjusted—remained unchanged at 4.1 percent for the third consecutive month at a 17-year low. 
 
“Today’s overall job growth number fell short of expectations, but the construction employment numbers surprised to the upside,” said ABC Chief Economist Anirban Basu. “It is likely that some of this is due to ongoing rebuilding efforts after hurricanes and wildfires. We will have a better sense of this once state-level employment figures become available. To the extent that construction job growth, whether residential or commercial, is disproportionately concentrated in states like California, Texas and Florida beyond pre-disaster norms, one can infer that rebuilding efforts are responsible for at least some of the surge in construction job growth.

“That said, a strengthening U.S. economy is likely responsible for the bulk of construction job growth. Consumer and business confidence have been surging recently,” said Basu. “The recently passed tax cuts will add additional liquidity to the U.S. economy, which should translate into faster consumer and business spending growth. Positive wealth effects from housing and financial markets as well as an improving global economy are also helping to push the economy forward. Higher energy prices and bitterly cold temperatures are also stimulating investment among energy suppliers.  

“Despite the recent pickup in the pace of economic growth, interest rates remain remarkably stable,” said Basu. “Among other things, lower interest rates benefit both owners and developers of real estate. This should help translate into growth in activity in a number of private construction segments. As yesterday’s construction spending data indicated, there is also growing momentum in a number of public construction segments, a reflection of improving state and local government finances in much of the nation due in part to stronger residential markets and solid income tax collections. All of this suggests that the average contractor should be eagerly looking forward to 2018. Elevated contractor optimism is consistent with leading indicators like ABC’s Construction Backlog Indicator and Construction Confidence Index. Both of these indicators have been pointing to stronger construction spending and increased staffing levels for months.” 

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F.L. Crane & Sons Inc. Earns AQC Credential

F.L. Crane & Sons Inc. of Fulton, Miss., a member of ABC’s Mississippi Chapter, has been awarded Accredited Quality Contractor (AQC) status by ABC.

The AQC program recognizes and honors construction firms that document their commitment to excellence in five key areas of corporate responsibility: quality, safety, employee benefits, training and community relations. A company that meets the criteria set forth in the program and has earned Safety Training Evaluation Process (STEP) Gold, Platinum or Diamond status, is formally designated an “Accredited Quality Contractor.”
      
Companies selected as an Accredited Quality Contractor receive:

  • Wide recognition within the industry and business community and with the public 
  • Authorization to use AQC language in bid documents
  • Permission to use the AQC logo on letterhead, business cards and jobsite signs
  • Access to AQC marketing materials such as hard hat stickers, membership plaques, etc. 
  • Points on ABC National Excellence in Construction® award submissions
  • Mention in the December issue of ABC’s magazine, Construction Executive®, as well as eligibility to purchase specially priced packages for half-page, full-page and two-page designs

For more information, visit abc.org/aqc or contact aqc@abc.org

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Nonresidential Construction Spending Ticks Higher in November, Down Year-Over-Year

Nonresidential construction spending expanded 0.6 percent in November, totaling $719.2 billion on a seasonally adjusted basis, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Census Bureau. Despite the month-over-month expansion, nonresidential spending fell 1.3 percent from November 2016. 

Private nonresidential construction spending is down 3.1 percent year-over-year, while public sector spending has increased 1.7 percent over the same period. Spending in the manufacturing and power categories, two of the larger nonresidential subsectors, fell by a combined $21.7 billion over the past year.  

“The November report represented a stark reversal of preexisting trends,” said ABC Chief Economist Anirban Basu. “For much of the past several years, the pattern in nonresidential construction spending has been one in which a number of private categories expanded briskly, including lodging and office, while a host of public construction categories experienced sluggish  spending. That changed in November, with public construction spending rising and private construction spending shrinking on a year-over-year basis. 

“There are several possible explanations, including growing concerns about overbuilding in a number of large metropolitan areas in the lodging, office and commercial categories,” said Basu. “Financiers may also be less willing to supply financing to a variety of private projects given such concerns. At the same time, the U.S. housing market is the strongest it has been in at least a decade, raising sales prices and expanding assessable residential tax bases. That in turn has supplied additional resources for infrastructure. Over the past year, this has been particularly apparent in the educational and public safety categories.”  

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Construction Unemployment Rates Improve in 36 States as Nation Posts Lowest November Rate on Record

The not seasonally adjusted (NSA) national construction unemployment rate was 5 percent in November, down 0.7 percent from a year ago and the lowest November rate on record, according to an analysis of U.S. Bureau of Labor Statistics (BLS) data released today by Associated Builders and Contractors (ABC). The construction industry employed 191,000 more workers than in November 2016. 

Construction unemployment rates were down in 36 states on a year-over-year basis, unchanged in 13 and up in one state (Missouri). Here is a complete list of the latest state rankings.

“Construction employment continues to show strength throughout much of the country, reflecting a healthy construction industry,” said Bernard M. Markstein, Ph.D., president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Above-average temperatures and below-normal precipitation in much of country in November likely helped overall construction activity. Continued recovery and rebuilding efforts following 2017’s hurricanes, floods and wildfires has added to demand for workers, offsetting some of the normal seasonal downturn in construction employment.”

Because these industry-specific rates are not seasonally adjusted, national and state-level unemployment rates are best evaluated on a year-over-year basis. The monthly movement of the rates still provides some information, although extra care must be used in drawing conclusions from these monthly movements.

From the beginning of the data series in 2000 through 2016, the monthly movement in the national NSA construction unemployment rate from October to November has increased 13 times, decreased twice and remained unchanged twice. The most recent rate went up 0.5 percent from October. Among the states, 38 had increases, nine had decreases and three were unchanged (Massachusetts, New York and Utah).

The Top Five States

The states with the lowest estimated November NSA construction unemployment rates in order from lowest to highest were:

1. Hawaii, 2.5 percent
2. Idaho and Utah (tie), 2.9 percent
4. Massachusetts, 3.1 percent
5. Colorado, 3.2 percent

The Bottom Five States

The states with the highest November NSA construction unemployment rates in order from lowest to highest were:

46. Connecticut, 7.7 percent
47. Illinois, 8 percent
48. New Mexico, 8.1 percent
49. Montana, 10.3 percent
50. Alaska, 16.3 percent

For a more detailed report, head to ABC’s State-by-State Construction Economics page.

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Construction Unemployment Rates Improve in 36 States as Nation Posts Lowest November Rate on Record, Says ABC

The not seasonally adjusted (NSA) national construction unemployment rate was 5 percent in November, down 0.7 percent from a year ago and the lowest November rate on record, according to an analysis of U.S. Bureau of Labor Statistics (BLS) data released today by Associated Builders and Contractors (ABC). The construction industry employed 191,000 more workers than in November 2016. 

Construction unemployment rates were down in 36 states on a year-over-year basis, unchanged in 13 and up in one state (Missouri). Here is a complete list of the latest state rankings.

“Construction employment continues to show strength throughout much of the country, reflecting a healthy construction industry,” said Bernard M. Markstein, Ph.D., president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Above-average temperatures and below-normal precipitation in much of country in November likely helped overall construction activity. Continued recovery and rebuilding efforts following 2017’s hurricanes, floods and wildfires has added to demand for workers, offsetting some of the normal seasonal downturn in construction employment.”

Because these industry-specific rates are not seasonally adjusted, national and state-level unemployment rates are best evaluated on a year-over-year basis. The monthly movement of the rates still provides some information, although extra care must be used in drawing conclusions from these monthly movements.

From the beginning of the data series in 2000 through 2016, the monthly movement in the national NSA construction unemployment rate from October to November has increased 13 times, decreased twice and remained unchanged twice. The most recent rate went up 0.5 percent from October. Among the states, 38 had increases, nine had decreases and three were unchanged (Massachusetts, New York and Utah).

The Top Five States

The states with the lowest estimated November NSA construction unemployment rates in order from lowest to highest were:

1. Hawaii, 2.5 percent
2. Idaho and Utah (tie), 2.9 percent
4. Massachusetts, 3.1 percent
5. Colorado, 3.2 percent

The Bottom Five States

The states with the highest November NSA construction unemployment rates in order from lowest to highest were:

46. Connecticut, 7.7 percent
47. Illinois, 8 percent
48. New Mexico, 8.1 percent
49. Montana, 10.3 percent
50. Alaska, 16.3 percent

For a more detailed report, head to ABC’s State-by-State Construction Economics page.

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ABC Celebrates Passage of Historic Tax Reform Bill

Associated Builders and Contractors (ABC) President and CEO Michael D. Bellaman released the following statement after Congress passed The Tax Cuts and Jobs Act:

“This is a historic day for the construction industry. For too long, ABC’s 21,000-plus members have paid the highest effective tax rate of any sector of the economy. We are a capital-intensive, cash-flow challenged, domestically oriented industry comprised mostly of small, family owned and closely held merit shop construction companies employing hardworking Americans. Our members have waited for Washington to let them keep more money in their paychecks, which would enable them to invest back in their businesses, create new jobs in their communities and grow the economy. The wait is finally over. 

“The vast majority of construction companies will benefit from the new 20 percent deduction for qualified pass-through income, bringing the top effective rate to 29.6 percent, down a full ten points. The rest will feel a boost from the largest corporate rate cut in U.S. history. Changes to various accounting methods will ease burdens for many small contractors and the doubling of the estate tax exemption to $11 million is a big win for our industry’s family businesses.

“ABC applauds Congress and the White House for delivering the first comprehensive tax reform in more than 30 years and giving our industry a simpler and fairer tax code that will lead to more economic freedom and global competitiveness.” 

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ABC Roundup of Regulations Impacting Merit Shop Contractors

Over the last year, the Trump administration has taken major steps to roll back burdensome rules and regulations issued by the Obama administration. In his first two months in office, President Trump signed Executive Order 13777, “Enforcing the Regulatory Reform Agenda,” and Executive Order 13771, “Reducing Regulation and Controlling Regulatory Costs,” which create regulatory reform task forces to remove burdensome regulations and prevent agencies from issuing unnecessary regulations with a so-called “one in, two out” policy. 

According to a recently released status report from the Office of Information and Regulatory Affairs on E.O. 13771, these efforts have resulted in $8.1 billion in lifetime net regulatory cost savings, with many of these rolled back regulations having a direct impact on ABC members and the construction industry at large. For more information, ABC members can watch the “2017 Regulatory Roundup” archived webinar in the ABC Academy

U.S. Department of Labor and Federal Acquisition Regulatory Council

Blacklisting Final Rule Eliminated

On Nov. 6, three federal agencies issued a final rule amending the Federal Acquisition Regulation (FAR) to withdraw the Fair Pay and Safe Workplaces final rule, commonly referred to as “blacklisting,” and President Barack Obama’s Executive Order 13673.  Additionally, the Department of Labor (DOL) withdrew the corresponding guidance document

The agencies’ action follows President Donald Trump’s decision to sign H.J. Res. 37, which blocked the implementation of the controversial final rule through the Congressional Review Act. Additionally, the resolution prevents future administrations from promulgating a similar rule—essentially permanently eliminating the rule.

Persuader Final Rule Blocked

On June 12, the DOL issued a notice of proposed rulemaking to rescind the persuader final rule. On Aug. 11, ABC submitted comments to the DOL in support of its proposal to rescind the rule. On Dec. 14, the Trump administration released its Fall 2017 Unified Agenda of Regulatory and Deregulatory Actions, which stated that the DOL plans to publish a final rule in January 2018 to rescind the persuader rule.

Published in the Federal Register on March 24, 2016, the persuader final rule would have significantly broadened the reporting requirements for employers, attorneys, trade associations and other third-party advisors under the Labor-Management Reporting and Disclosure Act by redefining what is meant by labor relations “advice.” On Nov. 16, 2016, the U.S. District Court for the Northern District of Texas issued a permanent injunction blocking the final rule. 

Overtime Rule Blocked

On Sept. 25, ABC submitted comments to DOL’s Wage and Hour Division on its request for information (RFI) on the 2016 overtime final rule, officially named the Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees. ABC also filed comments with a coalition of business groups and other stakeholders as a member of the Partnership to Protect Workplace Opportunity. According to the Fall 2017 Unified Agenda, the DOL plans to issue a notice of proposed rulemaking (NPRM) in October 2018 to propose an updated salary level for exemption.

The final overtime rule, had it gone into effect, would have changed the federal exemptions to overtime pay under the Fair Labor Standards Act for “white collar” workers by doubling the current minimum salary level for exemption from $23,660 to $47,476 per year and automatically increasing it every three years. 

On Aug. 31, the U.S. District Court for the Eastern District of Texas granted a motion for summary judgment against the final overtime rule and converted its earlier preliminary injunction (issued Nov. 22, 2016) to a permanent injunction. ABC participated in the legal challenge that resulted in the court overturning the rule.

Safety, Health and Environment Regulations

Volks Rule Eliminated

Congress passed resolution H.J. Res. 83 and President Trump signed it into law on April 3, 2017, permanently eliminating the Volks rule.  

The Volks final rule, or Clarification of an Employer’s Continuing Obligation to Make and Maintain an Accurate Record of Each Recordable Injury and Illness, would have extended the time period in which OSHA could cite an employer for recordkeeping violations from six months to up to five years.  Finalized by the Obama administration, the rule would have imposed a massive paperwork burden on contractors without improving jobsite safety.  

Enforcement Guidance Issued on Respirable Crystalline Silica

On Oct. 19, the U.S. Department of Labor’s Acting Deputy Assistant Secretary Thomas Galassi issued a memorandum on Interim Enforcement Guidance for the Respirable Crystalline Silica in Construction Standard. The memo provides interim enforcement guidance to compliance safety and health officers (CSHOs) for enforcing the standard, stating:

Effective Oct. 23, 2017, OSHA will fully enforce all appropriate provisions of the Silica in Construction Standard. This memorandum will serve as interim enforcement guidance while the standard’s companion compliance directive is proceeding through the review process. It will expire when the compliance directive becomes effective and available to the field.

On Oct. 25, ABC National offered ABC members a webinar on the final silica rule, which is archived in ABC’s Academy.

Silica remains a top priority for ABC National, and we continue to have conversations with the U.S. Department of Labor. 

Learn more about the final silica rule here and new and revised OSHA fact sheets here.

Electronic Injury and Illness Reporting: Updated Deadline 

Under DOL’s Electronic Injury Reporting and Anti-Retaliation final rule, also known as Improve Tracking of Workplace Injuries and Illnesses, certain employers were required to electronically submit the information from their completed 2016 Form 300A by Dec. 15. On Dec. 18, the Occupational Safety and Health Administration (OSHA) announced in a press release that they will continue accepting 2016 OSHA Form 300A data through the Injury Tracking Application (ITA) until midnight on Dec. 31, 2017. OSHA will not take enforcement action against those employers who submit their reports after the Dec. 15, 2017 deadline but before Dec. 31, 2017 final entry date. Starting Jan. 1, 2018, the ITA will no longer accept the 2016 data.

The final rule requires many employers to electronically submit detailed injury and illness records to OSHA that will be posted on the Internet. Also, some forms of post-accident drug testing and accident-free incentive programs are deemed to be unlawfully retaliatory. 

Enforcement of the anti-retaliation provisions of the final rule went into effect on Dec. 1, 2016. 

According to the Trump administration’s Fall 2017 Unified Agenda, an NPRM, which would seek to reconsider, revise or remove provisions of the final rule, is expected to be published in December 2017. More information about the final rule can be found on DOL’s website and on the Injury Tracking Application landing page.

WOTUS Rule Under Review  

Since Oct. 9, 2015, the Environmental Protection Agency’s (EPA) 2015 “Waters of the United States” (WOTUS) final rule has been under a nationwide stay by the U.S. Sixth Circuit Court of Appeals. The WOTUS final rule would have dramatically expanded the scope of federal authority over water and land uses across the country, triggering a substantial increase in permitting requirements and leading to project delays and cost increases for the construction industry. 

On June 27, the EPA and Department of the Army and Army Corps of Engineers (the Corps) announced they are proposing to rescind the 2015 Clean Water Rule and re-codify the regulatory text that existed prior to the 2015 WOTUS rule. The Corps and EPA published a notice in the Federal Register on July 27. The EPA plans to issue a final rule rescinding WOTUS in April 2018 and a proposed rule to redefine WOTUS in May 2018.

During an Oct. 10 teleconference for the construction sector hosted by the EPA and the Corps, ABC reiterated its opposition to the 2015 final rule and urged the agencies to develop a new definition consistent with U.S. Supreme Court precedent and congressional intent.

Beryllium Exposure for Construction Sector: Further Regulatory Action Pending

On Jan. 9, 2017, OSHA issued a final rule on beryllium exposure, which included the construction industry. The final rule was expanded from the proposed rule, which focused on general industry.   

On June 27, OSHA issued a proposed rule to revoke the ancillary provisions of the final rule but retain the permissible exposure limit of .2 micrograms per cubic meter of air as an eight-hour weighted average and the short-term exposure limit of 2.0 micrograms per cubic meter of air, which is fifteen minutes. ABC submitted comments in support of the proposed rule on Aug. 28, 2017. 

According to the Fall 2017 Unified Agenda, OSHA will issue a final rule in September 2018.

This article is intended for informational purposes only and does not constitute legal advice or opinion.

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Trump Administration Continues to Roll Back Burdensome Regulations

On Dec. 14, the Trump administration released its Regulatory Plan and Unified Agenda of Regulatory and Deregulatory Actions. The agenda lists upcoming rulemakings and other regulatory actions from each agency that the administration expects to release through the end of the year and in 2018. 

In addition to the Unified Agenda, the Office of Information and Regulatory Affairs released a status report on the implementation of President Trump’s Executive Order 13771, “Reducing Regulation and Controlling Regulatory Costs,” which requires agencies to eliminate two existing regulations for every new regulation and stipulates that the savings from the eliminated regulations must offset the cost of each new regulation in order to bring the “total incremental cost of all new regulations” to zero for FY 2017. The administration announced that they far surpassed their goal, issuing 22 deregulatory actions for every one new regulatory action and achieving $8.1 billion in lifetime net regulatory cost savings.

Department of Labor

The Department of Labor (DOL) announced its plans to continue to rollback or revise many of the burdensome rules issued under the Obama administration:

  • December 2017: OSHA plans to issue a proposed rule to revise its Improve Tracking of Workplace Injuries and Illnesses, also known as the Electronic Injury Reporting and Anti-Retaliation final rule. The compliance deadline to electronically submit injury and illness data was Dec. 15. According to a Dec. 18 press release, OSHA will continue accepting 2016 OSHA Form 300A data through the Injury Tracking Application until midnight on Dec. 31, 2017.
  • January 2018: The Office of Labor-Management Standards plans to issue a final rule to rescind the persuader rule, officially named “Interpreting “Advice” Exemption in Section 203(c) of the Labor-Management Reporting and Disclosure Act.” ABC submitted comments on the proposal to rescind the rule Aug. 11. 
  • October 2018: The Wage and Hour Division plans to issue a proposed rule to revise the 2016 final overtime rule, officially named “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.” ABC submitted comments on the DOL’s request for information on the overtime rule Sept. 25. 

The department has also slated a proposed rule, “Apprenticeship Programs, Labor Standards for Registration, Amendment of Regulations,” for January 2018. This proposed rule comes at the instruction of President Trump’s E.O. 13801, “Expanding Apprenticeships in America,” which asks the secretary of labor, in consultation with the secretaries of education and commerce, to consider proposing regulations that establish guidelines for third parties to certify industry-recognized apprenticeship programs. On Oct. 16, ABC President and CEO Mike Bellaman was appointed by Secretary R. Alexander Acosta to serve on the Task Force on Apprenticeship Expansion, created by E.O. 13801. ABC participated in the inaugural Nov. 13 meeting.

Additionally, the DOL plans to issue a proposed rule to implement President Trump’s Presidential Executive Order Promoting Healthcare Choice and Competition Across the United States, which would expand access to association health plans. The proposal will establish criteria for an employer group or association to act as an “employer” within the meaning of section 3(5) of ERISA and sponsor an association health plan that qualifies as an employee welfare benefit plan and a group health plan under Title I of ERISA. The department expects to release the proposal in December 2017.

Other regulatory actions listed by the DOL include:

Environmental Protection Agency

The Environmental Protection Agency (EPA), along with the U.S. Army Corps of Engineers, will continue with plans to rescind the 2015 Clean Water Rule, also known as the definition of ‘waters of the United States’ (WOTUS) final rule. The agencies expect to release a final rule rescinding the 2015 WOTUS rule and re-codifying the regulatory definition that existed prior to the 2015 final rule in April 2018 and a proposed rule to redefine WOTUS in May 2018 (final rule expected in June 2019). 

Additionally, the EPA plans to continue to roll back the Obama-era Clean Power Plan. The agency published a proposed rule to repeal the Clean Power Plan in October and plans to solicit public feedback in Dec. 2017 on whether the EPA should propose a new rule regulating carbon emissions. 

Lastly, the EPA will end its review of the 2008 Lead; Renovation, Repair, and Painting Program in April 2018. 

Department of Transportation

Equal Employment Opportunity Commission 

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OSHA Issues New and Revised Fact Sheets on Silica

On Dec. 19, the U.S. Occupational Safety and Health Administration (OSHA) issued several fact sheets that provide guidance on the respirable crystalline silica standard for construction. The fact sheets include an overview of the silica standard as well as provide information to help employers comply. 

Please visit OSHA’s Silica Resource Page for more information.

Background:

On Oct. 19, the U.S. Department of Labor’s Acting Deputy Assistant Secretary Thomas Galassi issued a memorandum on Interim Enforcement Guidance for the Respirable Crystalline Silica in Construction Standard. The memo provides interim enforcement guidance to Compliance Safety and Health Officers (CSHOs) for enforcing the standard, stating:

Effective Oct. 23, 2017, OSHA will fully enforce all appropriate provisions of the Silica in Construction Standard. This memorandum will serve as interim enforcement guidance while the standard’s companion compliance directive is proceeding through the review process. It will expire when the compliance directive becomes effective and available to the field.

On Oct. 25, ABC offered ABC members a webinar on the final silica rule, which is archived in ABC’s Academy

Silica remains a top priority for ABC, and we continue to have conversations with the U.S. Department of Labor. We will update you with any new developments.

For more information, read Jackson Lewis P.C.’s analysis on what employers need to know about the final rule. 

Litigation Update:

ABC, along with a coalition of construction groups, is litigating the final rule. The case is in the U.S. Appeals Court for the D.C. Circuit. 

Since the rule was proposed in 2013, ABC has voiced serious concerns with the rule and has taken the following actions:

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Recent Important NLRB Decisions and Actions

The National Labor Relations Board (NLRB) recently issued the following decisions that are favorable to the employer community.

  • On Dec. 14, in a 3-2 decision, the NLRB overruled the Board’s 2015 decision in Browning-Ferris Industries and returned to the previous joint employer standard. In its press release, the board states, “In all future and pending cases, two or more entities will be deemed joint employers under the National Labor Relations Act if there is proof that one entity has exercised control over essential employment terms of another entity’s employees (rather than merely having reserved the right to exercise control) and has done so directly and immediately (rather than indirectly) in a manner that is not limited and routine. Accordingly, under the pre-Browning Ferris standard restored today, proof of indirect control, contractually reserved control that has never been exercised, or control that is limited and routine will not be sufficient to establish a joint employer relationship.” 
  • Also on Dec. 14, in a 3-2 decision, the NLRB overruled the Lutheran Heritage Village-Livonia case and the board’s decision establishes a new standard governing workplace rules, policies and employee handbooks.
  • On Dec. 15, in a 3-2 decision, the NLRB overruled the decision in Specialty Healthcare, which allowed for the formation of so-called ‘micro’ bargaining units. According to its press release, the NLRB “reinstated the traditional community-of-interest standard for determining an appropriate bargaining unit in union representation cases. The National Labor Relations Act provides that the board must decide in each case whether the group of employees a union seeks to represent constitutes a unit that is “appropriate” for collective bargaining.”   

Note: NLRB Chairman Philip A. Miscimarra’s term expired on Dec. 16. The board is currently locked in a 2-2 split until Miscimarra’s replacement is confirmed by the full Senate. President Donald Trump is reportedly close to nominating John Ring, a management-side attorney at Morgan Lewis. 

On Dec. 14, the NLRB published a request for information (RFI) for public comment on the NLRB’s 2014 “ambush” election final rule (also known as Representation-Case Procedures), which overhauled the procedures for union representation by drastically shortening the amount of time between when a union files a representation petition and an election takes place.  

The board is seeking feedback on three questions:

  1. Should the 2014 election rule be retained without change?
  2. Should the 2014 election rule be retained with modifications? If so, what should be modified?
  3. Should the 2014 election rule be rescinded? If so, should the board revert to the representation election regulations that were in effect prior to the 2014 election rule’s adoption, or should the board make changes to the prior representation election regulations? If the board should make changes to the prior representation election regulations, what should be changed?

Responses to the RFI must be received by the board on or before Feb. 12, 2018. Responses are limited to 25 pages. Visit the NLRB webpage for more information on how to submit comments. 

ABC will be submitting comments on the RFI. Members can contact Karen Livingston or Kelly Tyroler if they have any questions.

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