The U.S. federal court of the Eastern District of Texas vacated the National Labor Relations Board’s recent rule on determining the standard for joint-employer status and the Board’s rescission of the 2020 joint-employer rule. Before vacating (i.e., deciding against the NLRB’s controversial new interpretation), the court had previously stayed the joint-employer rule until March 11, 2024.  [For more information, see CIRT’s story on this matter dated: 12/01/2023].  

In sum:

• The U.S. district court ruled that the NLRB’s 2023 “joint employer” regulations—which provided that indirect or reserved control, even if never exercised, could be sufficient to establish joint employment—was defined overbroadly.

• The court restored prior regulations requiring “substantial direct and immediate control” to establish joint employment.
• The court also ruled that challenges to NLRB regulations are properly brought first in federal district court.

The District Court’s decision to vacate the Board’s rule was welcome news to a large cross-section of business organizations and groups, including CIRT, that had supported a ABC / U.S. Chamber of Commerce lawsuit seeking to stop the new standard from taking effect. At this time, the NLRB is still reviewing the decision and actively considering next steps in this case, which may likely mean appealing to the U.S. Circuit Courts.

CIRT joined other organizations, groups, and union leaders in support of a “ground breaking” industry-wide initiative headed by Bechtel; to heighten awareness and bring tools/solutions to addressing the need for enhanced psychological health to our industry’s workforce.  The initiative will include partnering with the American Foundation for Suicide Prevention (AFSP), which will be tasked with creating an industry specific approach/model for use to combat the tragic levels of suicides in our community.

For more information on this partnership see:  https://www.constructiondive.com/news/bechtel-suicide-construction-pledge/709385/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202024-03-06%20Construction%20Dive%20Newsletter%20%5Bissue:59795%5D&utm_term=Construction%20Dive

The National Labor Relations Board (NLRB) rule on “joint employer” final version has been delayed due a series of legal actions first reported in the CIRT story dated 11/09/23. The cases were brought by various groups in the U.S. District Court for the Eastern District of Texas challenging the agency’s joint employer rule. The full complaint can be viewed here.

Background: The National Labor Relations Board published a final rule on October 27, 2023 rescinding and replacing previous regulations regarding the standard for determining joint employer status under the National Labor Relations Act. The new announcement released by NLRB amendments the effective date from December 26, 2023 to February 26, 2024 in light of legal challenges that have been filed with respect to the new rule. [For the initial rulemaking being delayed, see: 29 CFR part 103 published at 88 FR 73946, October 27, 2023].

In addition to U.S. Congress taking steps to void a new NLRB rule on “joint employer rule,” on November 9^th a large cross-section of business and trade associations joined by the US Chamber and others have filed a lawsuit challenging the NLRB’s joint employer rule. On The case has been brought the various groups in the U.S. District Court for the Eastern District of Texas challenging the agency’s recently released final joint employer rule. The full complaint can be viewed here.

The Departments of Labor, Health and Human Services and the Treasury proposed rules that would ensure that people seeking coverage for mental health and substance use disorder care can access treatment as easily as people seeking coverage for medical treatments. “Mental health care is as important to the well-being of America’s workers as physical health care,” Acting Secretary of Labor Julie Su said at a White House event highlighting the importance of mental health care.  DOL’s proposal is pursuant to the Mental Health Parity and Addiction Equity Act (passed in 2008) which aims to make sure people seeking mental health and substance use disorder care do not face greater barriers to treatment than those faced by people seeking treatment for medical and surgical conditions. Generally, the act prohibits private health insurance companies from imposing copayments, prior authorization and other requirements on mental health or substance use disorder benefits that are more restrictive than those imposed on medical and surgical benefits.

The proposed rules seek to fully protect the rights of people seeking mental health and substance use disorder benefits and provide clear guidance to plans and issuers on how to comply with the law’s requirements. In developing their proposals, the departments drew from their combined and individual experiences in enforcing the act and in working with plans and issuers, as well as state regulators.

Learn more about the proposed rules to improve mental health and addiction care access

Past speaker at a CIRT Conference, Daniel Groves (Construction Industry Resources), has just recently completed a skilled labor market analysis for Arizona and the Phoenix, Tucson, and Flagstaff MSAs. The report projects labor cost growth through 2028 and examines several key labor issues – project spending and timing, skilled craft market volatility, supply insufficiency, and cost escalation – for the industrial construction market.

Across the United States, construction spending and corresponding skilled labor demand is producing a shortage environment which is increasing competition for limited supply and appears destined to last for an extended period of time. The Arizona construction market is equally stressed, driving a surge in demand for skilled labor that creates project uncertainty. If you are in this geographic market, or are considering it, the report will heighten your knowledge of the regional labor market to ensure you aren't surprised by what's ahead during planning and execution – or when bidding on a project in the state.

For more information on how to purchase this analytics report on labor market conditions in portions of Arizona, go to: www.ciranalytics.com

Outdoor workers in the Northeast United States and other areas concerned about exposure to wildfire smoke can find information and resources on the National Institute for Occupational Safety and Health website. Also, OSHA has additional resources on wildfire emergency preparedness, response and recovery operations; for those interested in obtaining a full picture of materials available.

As part of its focus during May, the Occupational Safety and Health Administration has launched an initiative to ensure safe and healthful working conditions for employees. Historically OSHA has approached its mission by focusing on physical hazards in workplaces, things you can see and measure. But in today's work environment, it requires a broader approach that includes both traditional occupational safety and health and paying attention to the huge impact of mental health on workers' well-being as well.

According to data, work-related stress is a significant problem in the United States:

• 83% of workers report suffering from work-related stress.
• Work-related stress has been reported to cause 120,000 deaths each year.
• For every $1 spent on ordinary mental health concerns, employers see a $4 return in productivity.

For more information on OSHA Resources, Programs, and Initiative, go to:  (a) Department of Labor launched an initiative to help employers talk with workers about workplace stress, mental health and substance use; and (b) to see what OSHA and the Georgia Mental Health Alliance are up to by encouraging employers to hold safety stand-downs during May to promote mental health awareness.  [Click on blue highlighted words/phrases for links].

With May being designated Mental Health Awareness Month, the focus is on understanding wellness at work. Given more than 1 in 5 adults in the U.S. live with a mental illness, the Department of Labor (DoL) is seeking to supply resources to help the effort to address this matter. Check out these materials if you are looking for more/additional items for your efforts:

• Blog: How the department is raising awareness about mental health at work
• Website: Our new landing page with workplace mental health resources

In the summer of 2022, the @ACEMentor Program of America placed more than 500 high school students in paid externships with architecture, construction, and engineering firms across the country as a part of the ACE Mentor Summer Workplace Experience (SWE) program.  READ MORE.

During CIRT's upcoming Fall Conference, industry leaders Dan Johnson (CEO of Mortenson) and Mike Choutka (CEO of Hensel Phelps) will share their companies' experiences becoming "Transformative Partners" with the ACE Mentor Program of America to provide a pathway for students from high school to the AEC industry and ensuring that those students actually finish their secondary education.