We wrote in August about major updates to the Davis-Bacon regulations issued by the Department of Labor.  The Final Rule updating those regulations became effective on October 23, 2023.  In the time since, contractors have been working to ensure compliance with the new requirements, including, among other things, seeking approval from the DOL before taking Davis-Bacon fringe credit for unfunded benefit plans, like PTO and holiday pay. Recently, however, the Associated Builders and Contractors, Inc. (“ABC”), and its Texas affiliate, filed suit against the DOL (including its Acting Sec ..read more

On August 31, 2023, the National Labor Relations Board issued a decision in Miller Plastic Products, Inc. that will make it easier for a single worker’s action to be considered “concerted” under the National Labor Relations Act. In a 3-1 decision, the Board overruled its 2019 decision in Alstate Maintenance, which had narrowed the circumstances in which the Board considered solo protests to be concerted activity and, thus, protected activity under the NLRA. For reference, in Alstate Maintenance, an employee working at JFK International Airport was terminated for a comment h ..read more

On August 2, 2023, the National Labor Relations Board reversed precedent on the issue of work rules that proscribe employee personal conduct. In Stericycle, the Board reversed and remanded an ALJ’s decision that found the employer violated Section 8(a)(1) by maintaining work rules addressing personal conduct, conflict of interest, and confidentiality of harassment complaints. In ruling against the employer, the ALJ had applied the standard established in Boeing Co 365 NLRB No. 154 (2017). The Boeing rule required the evaluation and balancing of two factors: 1) the extent of the potential ..read more

On August 30, 2023, the U.S. Department of Labor issued proposed regulations that would sharply increase the minimum salary requirements for the Fair Labor Standards Act’s white-collar overtime exemptions.  These proposed regulations, if they take effect, would impact millions of currently exempt employees and create significant compliance issues for many employers. Background and History The FLSA’s white-collar exemptions are applicable to “bona fide” executive, administrative, and professional employees and generally include both a minimum salary requirement and a duties test.  To ..read more

This post was co-authored by Christian M. Wolgemuth, an attorney in McNees’ Privacy & Data Security and Litigation practice groups. In our rapidly evolving technological landscape, the use of artificial intelligence (AI) has become more prevalent, touching virtually every aspect of our lives. From smart assistants that streamline our tasks to advanced data analytics that drive business decisions, AI is transforming industries across the globe. However, with this transformation comes important questions about ethics, fairness, and potential biases, particularly when it comes to AI in the em ..read more

The National Labor Relations Board issued a groundbreaking decision in Cemex Construction Materials Pacific, LLC that will likely leave employers reeling.  The Board cast aside over 50 years of established law, and created a new standard that will further tilt the playing field in favor of labor unions in the union election process.  The new standard will result in more bargaining orders, which will force employers to bargain with a union despite the employees’ preference to remain union free. At the urging of its General Counsel, the Board overturned the rule it established in 1971 ..read more

Individuals who are 50 years old or older may make additional contributions to 401(k) plans, referred to as catch-up contributions.  Secure 2.0 included a requirement that starting January 1, 2024, only participants who earn $145,000 or less (as adjusted) in the previous year may make pre-tax contributions. Individuals who earned more than $145,000 in the previous year may only make Roth catch-up contributions. On August 25, 2023, the Internal Revenue Service announced a 2-year transition period whereby plans will not be required to comply with the requirement that individuals earning mor ..read more

On August 8, 2023, the Department of Labor issued a Final Rule that makes significant changes to contractor and subcontractor obligations on federal and federally-assisted construction projects.  Contractors who perform work under projects covered by the Davis-Bacon Act should become familiar with their new obligations. We have summarized below some of the key provisions of the Final Rule.  They are as follows: Updated definition of “prevailing wage.” The DOL departed from the definition of “prevailing wage” used for nearly 40 years.  The Final Rule now identifies a wage as pre ..read more

Most of our readers are aware of the fact that the COVID era policy which allowed employers to remotely examine documentation provided by employees for completing the form I-9 ended as of July 31, 2023. All employers will now have until August 30, 2023 to physically examine the I-9 documentation presented by the employees who were previously allowed to present their documentation remotely. Like everything else the government does, DHS and USCIS wanted to make the I-9 process fun for all. As a result, USCIS has issued a new I-9 form and DHS has established an alternative for review of I-9 docum ..read more

McNees’ Benefits Group will be issuing a “Did you know?” series throughout the year providing short compliance reminders. Did you know that beginning in January 2024, participants may only make Roth catch-up contributions to their 401(k) (and may not make pre-tax catch-up contributions) if they earned more than $145,000 (as adjusted by the Secretary of the Treasury) in the previous year? If the participant made less than $145,000 in the previous year, the participant may continue to make pre-tax catch-up contributions. For more information regarding compliance for your benefit plans, cont ..read more