Recently, a General Contractor on a federal construction project informed a CAGC member that a union had submitted a FOIA request for the number of employees on their job. This experience underscores the need of all members to be vigilant to risks posed by labor unions.
Certified payrolls submitted on certain Davis-Bacon-covered projects (i.e., prevailing wage projects) may be subject to disclosure in response to FOIA requests. Unions use this information to target nonunion contractors for organizing or for compliance complaints. Accordingly, contractors on federal projects should consider implementing measures to maintain the confidentiality of certified payroll and employee records and opposing any disclosure of confidential records pursuant to FOIA.
Contractors seeking to bid and participate in federally funded infrastructure projects under the 2021 Infrastructure Investment and Jobs Act (IIJA) or projects seeking tax credits under the Inflation Reduction Act (IRA) should also carefully assess the potential labor risks presented by participating in those projects. Under the IIJA and a Biden Executive order covering federal construction projects, projects of $35 million or greater are required to be performed using union project labor agreements. IRA-covered projects do not require project labor agreements. However, IRA-covered projects must pay prevailing wage rates and comply with apprenticeship requirements. Both present legal and practical risks for non-union contractors.
If you have any questions, please contact CAGC President & CEO Dave Simpson.