Capitol Connection: September
Capitol Connections_9.14.22

September 14, 2022

New Law Inserts Labor Requirements in Tax Code for Energy Projects

Early last month, President Biden signed into law the Inflation Reduction Act, which includes provisions that would provide a “bonus” or increased tax benefit for certain clean energy projects in which the contractor pays prevailing wage and uses registered apprentices. The bill passed through the reconciliation process, which bypasses the 60-vote filibuster rule needed for most legislation and requires only a simple majority to pass. IEC sent a letter in opposition to the bill based on these pro-union provisions. To view an outline of the labor provisions in the law, click here


Biden Administration Releases PLA Proposed Rule

The Biden administration released its proposed rule on August 19 that requires the use of project labor agreements (PLA) on direct federal construction projects valued at $35 million or more. The proposal implements an executive order signed by President Biden earlier this year. Prior to its release, IEC met with representatives of the Office of Management and Budget to express its opposition to government-mandated PLAs, which are anti-competitive and discriminate against open shop contractors by requiring the use of union labor. IEC will be submitting comments opposing the rule, which are due October 18.

NLRB Proposes Expansive Joint Employer Standard

On September 6, the National Labor Relations Board announced a Notice of Proposed Rulemaking (NPRM) addressing the standard for determining joint-employer status under the National Labor Relations Act. The proposed rule goes well beyond that which was established under the Obama administration and explicitly states that joint employer status could be found if an employer simply “possesses the authority to control (whether directly, indirectly, or both), or exercises the power to control (whether directly, indirectly, or both), one or more of the employees’ essential terms and conditions of employment.” If adopted, the proposed rule would rescind and replace the joint-employer rule that took effect under the Trump administration that IEC supported. IEC will be submitting comments, which are due November 7. 

NLRB Restricts Workplace Dress Codes

On August 29, the National Labor Relations Board issued its decision in Tesla, Inc., overruling precedent that allowed employers to enforce facially-neutral dress codes to prohibit wearing non-conforming attire, including union insignia and union logos. Employers must now allow employees to wear union attire absent a showing of “special circumstances.”

Help the IEC Freedom Fund Reach its Goal!


Congress and the Biden administration and Congress continue to promote policies that benefit big labor at the expense of the merit shop. Project labor agreements, pro-union appointees at the National Labor Relations Board, and changes to Davis-Bacon all threaten IEC’s contractor members. To continue to promote and protect the merit shop philosophy, IEC has rebranded its Political Education Fund as the IEC Freedom Fund. This fund is designed to give IEC more firepower in Washington to protect its merit shop electrical contractors.


Want to see your chapter or company on this list? Become a Freedom Fund Patriot Sponsor by donating online today!


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