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Association Officials Say the Threat of New Tariffs Has Already Led to Dramatic Increases in the Cost of Many Construction Materials, Warn Prices Will Grow As the New Trade Restrictions Take Effect

In a landmark decision, the Supreme Court of California in Dynamex Operations West, Inc. v. Superior Court adopted a new test to determine whether a worker performing services for a company is an employee or an independent contractor under California鈥檚 wage orders. The new three-factor test, known as the ABC test, will determine whether a company 鈥渆mploys鈥 a worker under the wage orders, which address certain requirements for minimum wage, overtime, and meal and rest periods, among others. The ABC test, which has long existed in other parts of the country in different forms, has not previously been used in California.

On May 25, AGC filed a friend-of-the-court brief in the Rhode Island Supreme Court in the Bacon Construction case, where the court will soon decide whether the standard form of the additional insured (AI) endorsement provided a general contractor鈥檚 with coverage under its it鈥檚 subcontractor鈥檚 insurance policy for a 鈥渢hird-party-over鈥 action.

Construction employment increased in 256 out of 358 metro areas between April 2017 and April 2018, declined in 63 and was unchanged in 39, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that the data showed a continuation of strong labor demand amid shortages of qualified workers.

AGC Fights Back Against Obama-Era Rule that Would Have Slowed Project Approval
Following in the tradition of Presidents Bush鈥檚 鈥済reening the government鈥 and Obama鈥檚 鈥渇ederal sustainability鈥 efforts, President Trump ordered federal agencies to meet statutory requirements for environmental performance and prioritize actions that reduce waste and enhance the resilience of federal infrastructure and operations. Trump鈥檚 May 17 Executive Order Regarding Efficient Federal Operations takes a less prescriptive approach and provides agencies greater flexibility in meeting existing requirements than Obama鈥檚 now rescinded 2015 order 鈥 which set far-reaching goals for federal buildings and fleets beginning in 2016 through 2025 and beyond.
n May 21, AGC challenged the U.S. Environmental Protection Agency鈥檚 consideration of using the Clean Water Act (CWA) permit program to regulate discharges to groundwater eventually making their way to a jurisdictional surface water.
On May 21, 2018, the U.S. Supreme Court upheld the legality of arbitration agreements containing collective- and class-action waivers. The Court held that arbitration agreements providing for individualized proceedings are valid and that neither the Federal Arbitration Act鈥檚 (鈥淔AA鈥) savings clause nor the National Labor Relations Act (鈥淣LRA鈥) suggests otherwise.
鈥淥ptimism about future job opportunities and market growth in 2018 and beyond remains high among union contractors, labor representatives and owner-clients 鈥 but at the same time, many remain concerned about a growing shortage of union craft workers,鈥 reports The Association of Union Constructors (TAUC) in a recent press release about the publication of the 2018 Union Craft Labor Supply Study. The study was conducted by TAUC and the AGC-supported Construction Labor Research Council.