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老牛影视Newsline
On Sept. 4, 老牛影视joined industry partners in filing an with the U.S. Supreme Court in the case , as the court considers whether the National Environmental Policy Act requires that agencies consider environmental impacts beyond the immediate effects of their regulatory decision.
The petitioner in the case, the Seven County Infrastructure Coalition in Utah, is before the court concerning approval of construction of a new rail line by the Surface Transportation Board. At issue is whether the Board must consider distant environmental effects such as increased oil drilling and refining activities facilitated by the rail line. Seven County argues that the Board should instead be limited to considering the direct effects of approving 听or denying a permit for the rail line.
ABC鈥檚 brief supports the petitioner, arguing that consideration of environmental factors not directly related to the permit would improperly expand NEPA reviews beyond congressional intent.
A favorable outcome in the case could help preserve a more reasonable scope for NEPA reviews, ensuring that federal agencies properly consider important environmental protections without causing unnecessary delays and increased costs for critical infrastructure projects.
On Sept. 3, Associated Builders and Contractors joined 150 members of the in a for , introduced by Rep. Zach Nunn, R-Iowa. This legislation would provide small businesses with an additional year to file the beneficial ownership information required by the U.S. Department of Treasury鈥檚 Financial Crimes Enforcement Network鈥檚 Corporate Transparency Act implementing regulation.
The CTA requires millions of small businesses, including nearly every employer with 20 or fewer employees, to report personal information of their beneficial owners and update that information periodically throughout the life of the business. Failure to comply with the onerous reporting requirements could subject small business owners and employees to potential fines and jail time.
鈥淎lthough filing under the CTA began at the start of this year, FinCEN reports it has received just 10% of required submissions. This compliance rate can be attributed directly to the general lack of awareness among the small business community when it comes to the new rules. Given this massive education gap, it is clear additional time is needed for regulators and other stakeholders to continue their outreach to affected small businesses,鈥� the letter stated.听
In the letter, 老牛影视and the SBE Council urged Speaker Johnson to bring H.R. 9278 to the U.S. House of Representatives floor for a vote to provide business owners and employees with more time to comply with the CTA.
A similar bipartisan bill to H.R.9278, sponsored by Reps. Nunn and Joyce Beatty, D-Ohio,听听late last year, 420-1. However, U.S. Senate Banking Committee Chair Sherrod Brown, D-Ohio, stalled the legislation, putting small businesses at risk.
For more on the CTA Beneficial Ownership Requirements, see ABC鈥檚 Compliance Update published on Aug. 5. 老牛影视encourages members and small business owners to discuss FinCEN鈥檚 BOI reporting requirements with counsel.
On Sept. 6, President Joe Biden signed , a new effort by the Biden-Harris administration to utilize federal policy to favor unions that is likely to undermine competition to build taxpayer-funded infrastructure projects.
In response to the White House EO released Friday morning prior to Biden signing the EO at a union hall in Michigan, 老牛影视immediately issued a press release condemning the EO and its impact on fair and open competition that was picked up in , stating in part:
鈥淭his gift to unions is discouraging for the overwhelming majority of the U.S. construction industry workforce鈥�nearly 90%鈥攖hat works for nonunion employers,鈥� said Ben Brubeck, 老牛影视vice president of regulatory, labor and state affairs. 鈥淚t also will hurt taxpayers and the overall construction industry, as both benefit from inclusive, win-win policies that welcome all contractors and workers to rebuild America, even if they decide not to affiliate with labor unions.
鈥淭he executive order will undermine the efficient and economical delivery of taxpayer-funded infrastructure, clean energy and manufacturing projects and is consistent with the Biden-Harris administration鈥檚 politically motivated policy schemes,鈥� said Brubeck. 鈥淭hese policies steer taxpayer-funded infrastructure contracts to unionized businesses and create jobs exclusively for union members at the expense of everyone else and the rule of law.鈥�
The EO, which claims to be an effort to promote high-quality jobs on federally funded construction projects, steers contracts to unionized firms and creates unions jobs by directing agencies to prioritize the distribution of federal financial assistance to applicants that (among other provisions listed in Section 3 of the EO):
The EO directs agencies to implement this prioritization through application evaluation criteria on notices of funding opportunity. Already, 老牛影视has identified over $271 billion in federal funding since President Biden took office subject to language and policies promoting PLA mandates and preferences that will increase costs and reduce competition on federally assisted construction projects.
The EO establishes a new Investing in Good Jobs Task Force within the Executive Office of the President, co-chaired by the secretary of labor and the director of the National Economic Council, with the responsibility of ensuring the EO is implemented across the federal government.
It is unclear when the Task Force recommendations will be released for public review, whether there will be a public notice and comment period for any new regulations or if this will be done administratively with no public input.
Of note, it is unclear if this new policy is something that a Harris or Trump White House would support, eliminate or modify.
it is more likely that a Trump White House would eliminate additional red tape undermining taxpayer investments in infrastructure, as the Trump administration previously repealed an Obama administration rule imposing a controversial pro-labor blacklisting regulation听 on federal construction projects that is similar in nature to the Good Jobs EO.
On Sept. 10, Brubeck .
老牛影视will continue to oppose and monitor this issue and forthcoming Task Force recommendations, policies and rulemakings.
In a win for 老牛影视members, on Aug. 20, the U.S. District Court for the Northern District of Texas the Federal Trade Commission from implementing its . The court found that the FTC lacked statutory authority to promulgate the rule and that the rule is arbitrary and capricious. This means the rule will not be enforced or otherwise take effect on Sept. 4, 2024. According to media reports, the FTC is considering appealing the decision. To learn more about the decision .
老牛影视is extremely pleased with the court鈥檚 decision and has consistently stated that 老牛影视members have valid business justifications for utilizing noncompete agreements, such as protecting confidential information and intellectual property. The new rule would have had a harmful effect on member companies as well as their employees, forcing employers to rework their compensation and talent strategies.
On July 3, the same Texas听court issued听a limited preliminary听injunction and stay of the FTC鈥檚 rule. On May 14, 老牛影视joined a broad group of trade associations in filing an in support of the plaintiffs鈥� request for injunctive relief against the FTC鈥檚 final rule to ban noncompete clauses.
Following the FTC鈥檚 vote on April 23 to finalize the ban on noncompetes rule, 老牛影视issued a听release听opposing the rule, stating, 鈥淭he final rule to ban all noncompete agreements nationwide鈥攅xcept existing noncompetes for senior executives鈥攊s a radical departure from hundreds of years of legal precedent. Ultimately, this vastly overbroad rule will invalidate millions of reasonable contracts鈥攊ncluding construction project contracts鈥攁round the country that are beneficial for both businesses and employees.鈥�
In April 2023, 老牛影视submitted听comments听in opposition to the FTC鈥檚 unprecedented听听to ban noncompetes. 老牛影视also joined the U.S. Chamber of Commerce and 280 business groups in submitting听听urging the FTC to rescind the proposed rule.
Continue to monitor ABC鈥檚 Newsline for further updates.
On Aug. 15, the U.S. Department of Defense issued a , which seeks to implement contractual requirements for DOD contracts related to the recently proposed Cybersecurity Maturity Model Certification 2.0 Program. Comments on the proposed rule are due Oct. 15.
Previously, on Dec. 26, 2023, the DOD released a听and听 to establish CMMC 2.0. As proposed, CMMC 2.0 would require federal contractors and subcontractors competing for DOD contracts to demonstrate continued compliance with a range of cybersecurity measures to maintain eligibility for performing and winning new federal awards. 老牛影视joined coalition听comments on that rule, calling for more clarity and urging a flexible implementation of CMMC requirements. This rule has yet to be finalized.
The Aug. 15 rule largely defers to CMMC 2.0 as previously proposed, with a focus on providing guidance to contracting officers as well as standard contracting clauses and solicitation provisions to incorporate CMMC 2.0.
However, the proposed rule includes new provisions of note, including:
For more information on the proposed rule and cybersecurity requirements impacting federal contractors, see and ABC鈥檚 Cybersecurity Resource Guide.
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On Aug. 1, the Senate Health, Education, Labor, and Pensions Committee voted to advance two nominees to the National Labor Relations Board. Democrat Lauren McFerran's nomination to serve another term as chair听passed in a party-line vote, 11-10. The nomination of Republican Josh Ditelberg passed with a bipartisan vote of 18-3. A full Senate vote on these two nominations is not yet scheduled.
The ABC-led Coalition for a Democratic Workplace issued a听 on the vote, saying:
鈥淐hair Sanders chose to hold this vote without providing his colleagues any opportunity to publicly question Lauren McFerran about her troubling record. Her tenure on the Board has included condemnations from federal courts, OIG reports criticizing the NLRB for 鈥榞ross mismanagement鈥� under her watch and bipartisan rejection of her policies by Congress.
鈥淢oreover, this nomination is an attempt by the Biden administration to control the Board鈥檚 agenda for years into the next administration, regardless of who wins the election.
鈥淭he Board鈥檚 mismanagement and malfeasance under McFerran鈥檚 leadership should disqualify her from confirmation. CDW strongly urges the full Senate to reject her nomination.鈥�
CDW sent letters to the HELP Committee in and urging members to reject McFerran's nomination due to the Board's mismanagement and malfeasance under her leadership, her extreme policy agenda, and the decision by comittee chair Sen. Bernie Sanders, I-Vt., to break with long-standing precedent and not hold a confirmation hearing on her nomination.
CDW will continue to reach out to Senate offices to educate them about McFerran's record on the Board and urge them to reject her nomination.
Effective Jan. 1, 2024, the Corporate Transparency Act requires certain entities, including many small businesses, to report information about the individuals who ultimately own or control them (also known as their 鈥渂eneficial owners鈥�) to the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.
A separate regulatory requirement currently requires many financial institutions to also collect beneficial ownership information, or BOI, from certain customers that seek to open accounts as part of federal customer due diligence requirements.
老牛影视has expressed serious concerns with the Treasury鈥檚 FinCen鈥檚 implementation of CTA. FinCEN鈥檚 implementing regulations require millions of small businesses, including nearly every employer with 20 or fewer employees, to report personal information of their beneficial owners and update that information periodically throughout the life of the business.
On March 1, a federal judge for the U.S. District Court for the Northern District of Alabama Northeastern Division ruled that the CTA is unconstitutional. The decision, however, , and all other businesses are still required to adhere to the CTA鈥檚 filing requirements. 老牛影视has called on Congress to examine the ruling and has argued that a stay in enforcement should apply to all affected parties. On March 11, Treasury the decision.
ABC, along with 100 organizations representing millions of small businesses nationwide, sent a letter to Congress strongly supporting legislation introduced by Rep. Warren Davidson, R-Ohio, to repeal the CTA. 老牛影视also to enact the Protect Small Business and Prevent Illicit Financial Activity Act (). The legislation, championed by Sen. Tim Scott, S.C., would delay the onerous CTA filing requirements and accompanying jail time and penalties by one year. A similar bipartisan bill sponsored by Reps. Zach Nunn, R-Iowa, and Joyce Beatty, D-Ohio, late last year 420-1.
Information about FinCEN鈥檚 BOI reporting requirements:
老牛影视encourages members and small business owners to discuss FinCEN鈥檚 BOI reporting requirements with counsel.
Please continue to monitor Newsline for additional updates.
On July 26, the National Labor Relations Board听issued its misnamed , which rescinds the , jeopardizing employees鈥� right of free choice in representational matters and disrupting the Board鈥檚 current representation processes. The 2020 final rule was听intended to听鈥渂etter听protect employees鈥� statutory right of free choice on questions concerning representation.鈥�
Immediately following the issuance of the final rule, the Coalition for a Democratic Workplace attributed to Kristen Swearingen, 老牛影视vice president of legislative & political affairs and CDW chair:
鈥淭he Board鈥檚 final rule eliminates commonsense measures that protect workers鈥� right to decide for themselves if they want union representation in the workplace. The rule forces employees into unions they may not want and makes it more difficult for employees to decertify unions that no longer have support from the workforce. These policies undermine employee free choice, and Congress and/or the courts should move to nullify them.鈥�
The makes three key policy changes: It rescinds and replaces the provisions of the 2020 final rule that address the 鈥渂locking charge鈥� policy and voluntary-recognition bar doctrine and rescinds the portion of the final rule that addresses proof of majority support for labor organizations representing employees in the construction industry.
Specifically, the rule returns to the blocking charge policy that halts union representation or decertification elections if the union alleges the employer committed unfair labor practices until those charges are resolved; eliminates the 45-day window that allows workers to demand a secret ballot election if the employer voluntarily recognizes the union based on signed authorization cards; and rescinds amendments that require unions in the construction industry to maintain proof of majority support if they want an exclusive collective bargaining relationship that is resistant to challenge.
The effective date of the new rule is Sept. 30, 2024, and will only be applied to cases filed after the effective date.
Board members David Prouty and Gwynne Wilcox joined Chair Lauren McFerran in issuing the final rule. Member Marvin Kaplan dissented. Read ABC鈥檚 2023 comments opposing the proposed rule. 老牛影视also joined submitted by the ABC-led CDW.
NLRB Chair Lauren McFerran , 鈥淭oday鈥檚 rule restores the Board鈥檚 prior law, including longstanding principles that ensure a fair process for workers to choose whether they want representation, and provide a better foundation to allow collective bargaining relationships to thrive.鈥�
Continue to monitor Newsline for any future updates.
The Biden administration continues to roll back Trump-era initiatives and institute new, pro-union policies that challenge 老牛影视members鈥� ability to win work. 老牛影视is fighting against these proposed rules and regulations affecting merit shop contractors and advocating for open competition and free enterprise.
The Biden administration鈥檚 costly and burdensome regulatory actions continue to harm American families and businesses by:
This adds up to $201.4 billion in regulatory costs and 276 million hours of paperwork over three years.
ABC鈥檚 Regulatory Roundup is updated on a regular basis and includes information about federal regulations, guidance and compliance materials from the U.S. Department of Labor, U.S. Department of the Treasury, Federal Acquisition Regulation Council, National Labor Relations Board, Federal Trade Commission, Environmental Protection Agency and Council on Environmental Quality.
Read听ABC鈥檚 July Regulatory Roundup听to learn more about the latest developments affecting the construction industry.
On July 3, 老牛影视submitted comments in response to the U.S. Department of Homeland Security鈥檚 Cybersecurity and Infrastructure Security Agency proposed rule on . The rule imposes new cyberincident and ransom payment reporting requirements for companies deemed to have responsibility for critical infrastructure.
Specifically, entities potentially covered by the rule fall under any of . Many construction contractors are likely to be covered by the proposed rule. The proposal would require that these covered entities report any substantial cyberincident within 72 hours, and any ransom payments made in response to a ransomware attack within 24 hours.
ABC鈥檚 comments, while recognizing the government鈥檚 vital need to protect critical infrastructure from cybersecurity threats, urged CISA to improve the rule by addressing key concerns including:
More information on the rule is available on and ABC鈥檚 previous Newsline article.
老牛影视has provided resources and webinars on new cybersecurity requirements affecting the construction industry at abc.org/cybersecurity.