Tuesday, June 30, 2020
Please see below for a political and legislative update along with additional information of federal and state governments’ response to COVID-19 and feel free to reach out with any questions.
House to Vote on ABC-Opposed $1.5 trillion Infrastructure Bill This Week:
On Thursday, the House is set to vote on H.R. 2 – Democrats’ $1.5 trillion infrastructure bill. The rules committee completed its hearing on the bill yesterday, making in order more than 150 amendments for consideration on the House floor. The bill also incorporated a Manager’s Amendment from House Transportation and Infrastructure Committee Chairman Peter DeFazio (D-Ore.) that is considered as adopted and is now part of the underlying bill. The Manager’s Amendment implements numerous ABC opposed provisions including a further expansion of PLA requirements. The bill is poised to pass the House with Democratic votes, as House Republicans will oppose the bill - seen in the releases of the ranking member of the Transportation and Infrastructure Committee here and here.
Stay tuned for an ABC grassroots opportunity to oppose the bill’s anti-merit shop provisions like – encouraging and expanding requirements for project labor agreements, expanding Davis-Bacon prevailing wage requirements and failing to recognize the widespread success of industry-recognized apprenticeship programs.
House Republicans Send Letter to NLRB on Electronic Union Elections:
Today, Republican Workforce Leaders on the Education and Labor Committee, Rep. Virginia Foxx (R-NC) and Rep. Tim Walberg (R-MI), sent a letter to National Labor Relations Board (NLRB) Chairman John Ring and General Counsel Peter Robb expressing concerns with Democrat demands to require the Board to hold union elections electronically. In the letter Reps. Foxx and Walberg write: “Calls for the NLRB to conduct elections through electronic voting appear to be little more than another attempt to change the rules in favor of organized labor, against workers who wish to represent themselves, and against employers who wish to negotiate directly with their employees.” The Members continue: “…unions could increase operational transparency and accountability to workers to serve their members better or dedicate more resources to organizing, rather than trying to rig the existing system. Nevertheless, it is clear that in-person, secret-ballot voting is the most reliable method for elections of any kind, and we strongly encourage the NLRB to ensure that all union elections under its jurisdiction be conducted in this manner to ensure a free and fair process.”
On March 19, 2020, the NLRB made a prudent decision to suspend all elections for two weeks to ensure the health and safety of workers, union and company personnel, and NLRB staff. The NLRB resumed elections on April 6, 2020.
Senate NDAA Amendment on Beneficial Ownership:
The manager’s amendment to NDAA was released last night and the Crapo/Brown beneficial ownership amendment was not included. This is a relief as inclusion in the manager’s amendment would have meant that amendment would be in the bill with little if any debate on its merits. However, there is an
440 First St., N.W., Suite 200 | Washington, D.C. 20001 | (202) 595-1505 | abc.org expectation that some amendments will be considered as stand-alone amendments. The timing of when stand-alone amendments may be considered is unclear right now. There are currently 640 amendments filed to S.4049, the NDAA.
Under the current Customer Due Diligence (CDD) rule, financial institutions are required to collect and verify the identities of the beneficial owners of companies that have accounts with their banks. The so- called Corporate Transparency Act would shift this responsibility away from these large banks that are best equipped to handle the reporting requirements and instead burden millions of small businesses, who often have limited capacity to file unfamiliar government paperwork.
This bill would also expose small businesses to serious criminal penalties for paperwork violations and raises privacy concerns as it provides law enforcement officials broad access to personal information without a subpoena or warrant. This would set a dangerous precedent that could be detrimental to our employers.
Democrats Push Phase 4 Coronavirus Relief Bill:
With coronavirus cases spiking in certain states across forcing additional shutdowns or scaled back reopenings for certain sectors of the economy throughout the country, Democratic leaders are ramping up pressure on Senate Majority Leader Mitch McConnell to pass another coronavirus relief bill. In a letter to McConnell, Pelosi and Senate Minority Leader Chuck Schumer (D-N.Y.) called the GOP “missing in action” and noted that the House passed its own sweeping relief package 45 days ago. “Now is the time for action, not continued delays and political posturing,” they wrote.
Congress is set to leave town by Thursday for a two-week July 4 break and will not return to Washington, D.C., until July 20. Senate Republicans are expected to wait until after the break to start negotiating and drafting the next potential relief bill. Though House Democrats passed a roughly $3 trillion bill earlier this year, it has been declared dead on arrival in the GOP-controlled Senate.
June CBI Survey: Closes today
In these tumultuous times for our companies and workers, it’s never been more important for ABC members to provide information on local economic conditions so we can help you understand the market and plan for the future. Please take a few minutes to complete the June 2020 Construction Backlog Indicator survey (based on your May financials), which supplies data for CBI, a valuable, forward-looking economic metric unique to ABC that reflects the amount of work under contract that will be performed by commercial and industrial construction contractors in the months ahead, as well as the Construction Confidence Index, a diffusion index that signals construction contractors’ expectations for sales, profit margins and staffing levels. If you are not receiving the survey or have any questions, please contact Rachel O’Grady at [email protected].
Here is the link if you need it: https://abcnational.iad1.qualtrics.com/jfe/form/SV_9YSgQeB8WkJFE33
Littler Issues Analysis on DOL’s Guidance on FFCRA Leave Relating to Summer Camp and Program Closures:
On June 26, 2020, the U.S. Department of Labor provided guidance for its Wage and Hour Division Investigators relating to when employees may be eligible to take paid family leave under the Families First Coronavirus Response Act when they are unable to work because they are caring for a child whose summer camp or other summertime place of care is closed. Read Littler’s analysis here.
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More information on FFCRA is available here.
Field Assistance Bulletin 2020-4 provides guidance on when an employee qualifies to take paid leave under the FFCRA to care for his or her child based on the closure of a summer camp, summer enrichment program or other summer program for coronavirus-related reasons.
Monday, June 29, 2020
Please see below for a political and legislative update along with additional information of federal and state governments’ response to COVID-19 and feel free to reach out with any questions.
House to Vote on ABC-Opposed $1.5 trillion Infrastructure Bill This Week:
On Thursday, the House is set to vote on H.R. 2 – Democrats’ $1.5 trillion infrastructure bill, H.R. 2. The bill, which ABC opposes, will make its way through the rules committee Tuesday to determine the amendments that will be offered. Due to the Covid-19 voting procedures, "There may be a lot of amendments, but we hope to hold the votes down to a manageable level," House Majority Leader Steny Hoyer said on Friday. The bill is poised to pass the House with Democratic votes, as House Republicans will oppose the bill - seen in the releases of the ranking member of the Transportation and Infrastructure Committee here and here.
Stay tuned for an ABC grassroots opportunity to oppose the bill’s anti-merit shop provisions like - encouraging project labor agreements, expanding Davis-Bacon prevailing wage requirements and failing to recognize the widespread success of industry-recognized apprenticeship programs.
Reminder – the PPP Lender Match Tool & Application Deadline is Tuesday, June 30th:
The last day to apply for the PPP loan program is at the end of the day, tomorrow, June 30, 2020. There is more than $134 billion in PPP funding remain. Through Monday afternoon, the SBA noted that the PPP loan program has approved more than 4.6 million loans nationwide. Late Last week, the SBA announced the launch their Lender Match as an additional resource for pandemic-affected small businesses who have not applied for or received an approved PPP loan to connect with lenders. SBA also released Summary of PPP lending as of 6/27/20.
Trump Considering Re-Imposing Section 232 Tariffs on Aluminum Imports:
The Trump Administration is considering re-imposing Section 232 tariffs on aluminum imports from Canada or imposing quotas. The Administration claims that there has been a recent surge in Canadian exports of aluminum to the U.S. The Aluminum Association represents domestic and foreign producers and sent this letter opposing the reinstatement of these tariffs. ABC as part of the Coalition of American Metal Manufacturers and Users (CAMMU) added its voice in opposition to these tariffs through a press release (also below) that was sent to the media on Friday.
Additional info here and here via Fox Business and the NYT.
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Senate NDAA Amendment on Beneficial Ownership:
Senate Banking Chair Mike Crapo and ranking member Sherrod Brown have quietly proposed an amendment to the National Defense Authorization Act that would overhaul anti-money laundering regulations, including a requirement that corporations report ownership information to the Treasury Department. ABC has opposed similar efforts on this issue in the House and will work to oppose this provision in the NDAA as well. The Senate is considering the defense bill this week.
The amendment would require nearly all businesses with 20 or fewer employees to register their “beneficial owners” with the Financial Crimes Enforcement Network (FinCEN) within 2 to 3 years of enactment and update that information regularly for the life of the business. This information would be accessible to thousands of law enforcement officers including the FBI, CIA, State Attorneys General, foreign law enforcement agencies via a request from an American agency, and other intelligence and law enforcement offices across the country through a written request. Currently, law enforcement must access similar data through a subpoena or a warrant. Under this legislation, that protection would be eliminated, and information would be access through a simple request. Willful noncompliance could result in jailtime of up to 2 years and $10,000 in fines. All businesses with over 20 employees and more than $5 million in gross receipts or sales are exempt from this regulation, as well as publicly traded companies, and certain businesses engaged in financial services.
Under the current Customer Due Diligence (CDD) rule, financial institutions are required to collect and verify the identities of the beneficial owners of companies that have accounts with their banks. The so- called Corporate Transparency Act would shift this responsibility away from these large banks that are best equipped to handle the reporting requirements and instead burden millions of small businesses, who often have limited capacity to file unfamiliar government paperwork.
This bill would also expose small businesses to serious criminal penalties for paperwork violations and raises privacy concerns as it provides law enforcement officials broad access to personal information without a subpoena or warrant. This would set a dangerous precedent that could be detrimental to our employers.
Additional DOL COVID-19 Guidance: Federal Child Labor Requirements and FFCRA Paid Leave:
On June 26, DOL issued two Field Assistance Bulletins to specifically address the following:
• The assessment of when schools that are physically closed for coronavirus related reasons are considered “in session” for purposes of federal child labor requirements, and • Paid sick or expanded family and medical leave eligibility under the Families First Coronavirus Response Act based on the closure of summer camps, summer enrichment programs, or other summer programs.
According to the DOL press release:
• Field Assistance Bulletin 2020-3 clarifies how child labor laws under the Fair Labor Standards Act apply to the employment of children when schools are in session while physically closed due to the coronavirus pandemic. In general, school is in session if the local public school district requires students to participate in virtual or distance learning, even if schools in the district are physically closed.
440 First St., N.W., Suite 200 | Washington, D.C. 20001 | (202) 595-1505 | abc.org • Field Assistance Bulletin 2020-4 provides guidance on when an employee qualifies to take paid leave under the FFCRA to care for his or her child based on the closure of a summer camp, summer enrichment program or other summer program for coronavirus-related reasons.
Trump Signs Executive Order on Federal Job Qualification Standards:
Today President Trump signed an Executive Order requiring Federal agencies to focus hiring on the skills job seekers possess, rather than focusing on whether they earned a college degree. The order requires Federal agencies to revise and update outdated Federal job qualification standards and candidate assessments, improving the quality and competency of the civil service. Unnecessary degree requirements exclude otherwise qualified Americans from Federal employment, impose the expense of college on prospective workers, and disproportionately harm low-income Americans. The order implements best practices already adopted by private sector leaders to promote equity and inclusion. As a result of this reform, talented individuals with apprenticeships, technical training, and apt backgrounds will have greater opportunity to pursue careers in the Federal civil service, according to the White House. Please see the factsheet for additional information.
Primary Preview - Colorado, Oklahoma and Utah Vote Tomorrow:
Three more state primaries are on tap for tomorrow, those in Colorado, Oklahoma, and Utah. Two of these three states, Colorado and Utah, use an all-mail voting process meaning we could again be waiting several days for final returns.
In Colorado - The Senate Democratic primary is center stage as former Gov. John Hickenlooper battles ex-state House Speaker Andrew Romanoff for the right to take on Sen. Cory Gardner (R) in the general election.
In Oklahoma - The big race of the night comes in Oklahoma City’s 5th Congressional District, where a total of nine Republicans are competing for the opportunity of challenging freshman Rep. Kendra Horn (D) who unseated two-term Rep. Steve Russell (R) in 2018. This will be one of the Republicans’ top national targets since the seat has a conservative history and the Horn victory two years ago was unexpected. With nine candidates adorning the GOP ballot tomorrow, advancing to an August 25th runoff election is a certainty.
In Utah - The Republican gubernatorial primary is the main attraction and all polling suggests a very tight result between Lt. Gov. Spencer Cox and former Governor and ex-US Ambassador Jon Huntsman. Freshman Rep. Ben McAdams (D), who defeated then-Rep. Mia Love (R) by just 694 votes in 2018, stands for a second term. The Congressman was re-nominated in convention, so he has already secured ballot position for the general election. On the Republican side, four candidates are vying for the party nomination, with the two contenders drawing the most attention being retired NFL football player and businessman Burgess Owens and state Rep. Kim Coleman (R). This will be another hotly contested race in the Fall.
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