A New President…A Labor Law Shakedown?
On February 18, 2009
By Scott Wolfe Jr
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The National Law Journal published an article last week titled “Stage is Set for Legal Labor Brawl,” and the opening line of the article sums it up perfectly, stating:
Business calls it “Armageddon.” Labor says it’s “a modest step.”
The article discusses one of the hot topics in labor law these days, the Employee Free Choice Act. Around the blogosphere and news agencies, discussion of the EFCA is on fire. A Google Video search of the topic yields propaganda from both sides, and on Chris Hill’s Construction Law Musings, I recently published a guest post summarizing argument from both proponents and opponents of the bill.
While the EFCA is certainly on the forefront of the labor law debate, its clear that its not the only argument in town.
To the contrary, since the recent inauguration of President Obama, there has been a substantial shift in labor law issues facing the construction industry, and it’s expected that more is on the way.
One of the most controversial actions by President Obama in the construction industry is the repeal of Executive Order 13502, which prohibited project labor agreements (PLAs) on federal and federally funded construction. ABC issued a press release specifically directed at this action, contending that it opposes PLAs because they “eliminate merit shop contractors from competing for and winning construction projects.” The ACG also came out against the repeal of 13502 here.
Another labor-law related act already performed by President Obama is the signing of the Lilly Ledbetter Fair Pay Act of 2009. The act was signed by the President on January 29, 2009, and extends the time period allowed for employees to seek compensation for unequal pay practices. The act is retroactive to May 28, 2007, and applies to all claims of pay discrimination on or after that date. Read more about the act at the AGC website here, or on CNN, which covered the Act as “Obama’s First Law.”
From the perspective of the construction industry, it’s a love/hate relationship with President Obama thus far, just one-month into his tenure.
On the one hand, as the Wall-Street Journal reported in mid-January, the construction industry has counted on Obama to put together a strong stimulus package that invested in federal contracting projects (and he pulled through).
On the other hand, however, President Obama is leading a potentially historic shift in employment and labor law matters that will seriously impact construction businesses.
Time will tell how the relationship between President Obama and the construction industry will fare. So far, however, it’s been a mixed bag.
About the Author: Scott Wolfe Jr
Scott Wolfe, Jr. obtained his J.D. degree from Loyola University of New Orleans, and his B.A. from Southern Methodist University in Dallas, TX. In 2006, 2007, 2008 and 2009, Scott was recognized as a Leader in Law by CityBusiness Magazine. The son and grandson of general contractors, Scott is a construction litigator in the Pacific Northwest, and the founding member of the bi-coastal law firm, Wolfe Law Group. Scott is also the founder and CEO of Express Lien, Inc., a legal document preparation service for contractors. In 2008, City Business Magazine recognized Scott as one of its Innovators of the Year for the Express Lien concept. As an entrepreneur himself, Scott has a strong background in business and commercial transactions and laws. He focuses his practice on the legal issues facing the construction industry, and has represented clients in multi-million dollar construction disputes in litigation and alternative dispute resolution proceedings. Scott is a LEED AP.
