Nevada Prevailing Wage Change Signed Into Law

Last week Governor Steve Sisolak of Nevada signed a bill to restore prevailing wage requirements to public construction projects.

Assembly Bill 136 restores the prevailing wage threshold for public projects to $100,000 from its current level of $250,000. Also, it restores the prevailing wage for workers on public school projects to 100% from the previous 90% of prevailing wage that those workers had been earning.

Those in favor of the prevailing wage changes say they will lead to higher wages for construction workers, and increased productivity and enhanced safety. Opponents of these prevailing wage changes claim they will increase cost and are harmful to state and local economies.

Eloy Jara, assistant business manager with the Laborers’ Union International, says that “the new law will help to establish the next generation of hardworking Nevadans and will also reward families who’ve been on the cusp of making more money but are falling short.” People across Nevada are expected to begin seeing their paychecks increase more often after July 1st.

The Retirement Challenges for Physical Workers

“How old do you want to be when you retire?” That’s a question posed by financial planners, friends, family, associates, retirement providers, and, most importantly, ourselves. For many of us, it’s a question that doesn’t have an easy answer. There are a lot of things to think about.  How much have we saved? How much debt are we in? Where do we want to retire? What type of retirement lifestyle do we want? How long will our retirement income last?

How often have you heard someone say, “I’ll never retire”? Many times people think they will retire at age X, when something unexpected happens to change that. It could be that there is a company organizational change that becomes untenable, a family member needs a caretaker, or you’ve been asked to take early retirement. It could also be that the type of work you do has physical requirements that, whether we want to admit it or not, become more difficult to maintain as we age.

The fact is, physical workers face challenges that non-physical workers do not. One of these is the reality that many of those workers will need to retire earlier than anticipated or even desired – and before they are financially ready to make this transition. This challenge was the focal point of a recent study conducted by the Aegon Center for Longevity and Retirement, and Transamerica Center for Retirement Studies. This survey, “The Unique Retirement Challenges Of Workers In Physically Demanding Jobs”, examines the issues physical workers around the world face when preparing for retirement. The study is a must read for those employers in the construction and contracting trades.

The survey found that physical workers are less likely to think that they are on target to meet their retirement income goals. They are not what is considered “habitual savers” and the majority have no backup retirement plan. Furthermore, 39% of retirees in the survey, including both physical and non-physical workers, retired earlier than anticipated. With the demands on their bodies, it would be reasonable for physical workers to do all they can to maintain good health – after all, their livelihoods depend on it. However, only 38% of the physical workers surveyed say they take their health seriously.

So what can be done? The study’s authors provide several recommendations for employers, workers themselves and policy makers to consider. Employers can offer retirement plans, with or without a match, and make it easier for physical workers to remain in the workforce longer by offering transitional plans such as a reduced work schedule or different positions within the company. They can also support healthy lifestyles and provide opportunities for physical workers to keep their skills up to date. Physical workers can take a greater interest in their health and well-being, explore ways to update their skillset, particularly in an ever-evolving labor market, and create a retirement strategy. Policy makers can encourage more financial literacy programs and skills training as well as promoting workplace retirement savings programs.

We’re all getting older! While planning for retirement may not be something we like to think about, physical workers also bear additional retirement risk simply due to the nature of their work. There are actionable solutions available to counteract this reality. By working together, employers and workers can mitigate these issues so that for physical workers, the question, “How old do you want to be when you retire?” is easier to answer.

WHD to Host 2019 Prevailing Wage Seminars

The Wage and Hour Division (WHD) has released the dates of their upcoming prevailing wage seminars for 2019. These seminars will be held as three-day compliance training workshops designed for regional stakeholders such as private contractors, unions, state agencies, federal agencies, and workers.

WHD 2019 seminars will be held in the following locations:

•    Austin, TX, on June 18th – 20th

•    Anchorage, AK, on June 25th – 27th

•    Sacramento, CA, on July 23rd – 25th

•    Washington, DC, on August 13th – 15th

•    Indianapolis, IN, on August 27th – 29th

During the seminars conference participants, will cover the following topics: The Davis-Bacon Act and McNamara O’Hara Service Contract Act; Executive Order 13658 “Establishing a Minimum Wage for Contractors”; the process of obtaining wage determinations and adding classifications; Executive Order 13495 “Nondisplacement of Qualified Workers”; the process for appealing wage rates, coverage, and compliance determinations; and compliance assistance and enforcement processes.

For more information or to register go to: https://www.dol.gov/whd/govcontracts/SeminarsInfo.htm

Stanton Confirmed as New Administrator of WHD

The Department of Labor has announced that Cheryl Marie Stanton has been confirmed by Congress and officially sworn-in by Secretary of Labor, Alexander Acosta, as the new Administrator of Department’s Wage and Hour Division (WHD). Stanton has been awaiting confirmation by the Senate since being initially nominated in September 2017.

Before coming to Washington DC, Stanton served in public service as the Executive Director of the South Carolina Department of Employment and Workforce. Under her leadership, the jobless rate in South Carolina was at its lowest point in almost 50 years. During this time, Stanton also oversaw the workforce system that helped place over 500,000 South Carolinians in jobs as well as leading two major information technology modernization projects that improved customer service and increased efficiencies for employees. Also, Stanton partnered with her colleague at the Department of Corrections to create the Second Chance job re-entry program for ex-offenders, receiving national accolades.

As the new administrator, Stanton will bring her breadth of experience to the Division, leading efforts in the enforcement of the federal minimum wage, overtime pay, recordkeeping, child labor requirements of the Fair Labor Standards Act, the Family and Medical Leave Act, and consumer credit protections. Additionally, overseeing prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and the provision of goods and services.

Optimism For Infrastructure Legislation

There was a recent meeting between the Administration and key Democratic lawmakers which concluded in an agreement to seek a $2 trillion legislative infrastructure package to improve and repair the nation’s roads, bridges, waterways, and broadband networks.

In the meeting, President Trump, House Speaker Nancy Pelosi, and Senate Minority Leader Charles Schumer each agreed on the importance of investing in this country’s future and rebuilding America’s infrastructure. Pelosi and Schumer told reporters after the meeting that “we’re very excited about the conversation we had with the president”; calling it a “good and constructive start.” Likewise, the White House also appeared optimistic about the discussion with Trump stating “an excellent and productive meeting” with the Democrats.

The Democratic leaders further noted that the two sides found common ground on some of the priorities that an infrastructure plan should address. Following the meeting, Democrats sent Trump a letter which outlined government funding, environmental considerations and Buy American provisions as three key priorities.

To date, both parties have submitted separate funding proposals to achieve the infrastructure goals. Nevertheless, the funding source continues to be unclear even with bipartisan agreement on the $2 trillion investment amount.  Future discussions are planned.

February 2019 Construction Spending

The U.S. Census Bureau announced construction spending for February 2019 was at a seasonally adjusted annual rate of $1,320 billion, 1.0 percent above the revised estimate of $1,307 billion in January. Compared to the same period last year, February was up 1.1 percent. For the first two months of the year, construction spending was $182 billion, up 1.4 percent for the same period last year.

While private construction spending in February was $994 billion, 0.2 percent above the revised January estimate of $993 billion; public construction spending was $326 billion, 3.6 percent above last month’s revised estimates of $314 billion. Compared to the same period last year, public construction was up 11.5 percent.

There were several contributors to public construction spending growth in February. The main contributor was Highway construction which was $111 billion, up 9.5 percent from revised January estimates of $101 billion. Compared to the same period last year, Highway construction is up 22.8 percent.

More information may be found at: https://www.census.gov/construction/c30/pdf/release.pdf

USDOL Announces Proposed Overtime Update

The U.S. Department of Labor announced a Notice of Proposed Rulemaking (NPRM) would be published to increase the weekly wage threshold to determine who is eligible for overtime pay under the Fair Labor Standards Act.

Employees earning less than the current threshold of $455 per week, which was established in 2004, must be paid overtime if they work more than 40 hours per week. The newly proposed threshold is $679 per week. The U.S. Department of Labor established this threshold based on comments from the public following a Request for Information in 2017, as well as six in-person listening sessions.

To be exempt from the new overtime proposal an employee must be paid a fixed salary, paid a weekly amount of at least $679, and primarily perform executive, administrative, or professional duties.

The public will have sixty days in which to provide comments once the NPRM is published in the Federal Register.

More information can be found at https://www.dol.gov/whd/overtime2019/.

2018 Construction Spending Update

The U.S. Census Bureau announced construction spending for 2018 was at a seasonally adjusted annual rate of $1,292.7 billion based on spending in December. The value of construction during 2018 increased by 4.1 percent compared to the same period in 2017.

While private construction spending was $991.2 billion based on spending in December, public construction spending was $301.5 billion. In 2018, both Private and Public construction spending were up with Private up 3.4 percent and Public construction, almost double that, increasing 6.6% from spending in 2017.

There were several contributors to public construction spending growth in 2018:

• Transportation construction was $34.9 billion, which was up 15 percent above the 2017 figures
• Educational construction was $73.6 billion, up 3.8 percent
• Highway construction was $94.6 billion, 4.2 percent above 2017

More information may be found at: https://www.census.gov/construction/c30/pdf/release.pdf

Forty-Two Percent Of Americans Struggle To Save For Retirement

GoBankingRates recently conducted two studies to explore what Americans are setting aside for retirement savings as well as why Americans might not be saving at all. Both reported findings that have troubling outlooks on retirement especially for the millennial generation.

The first study used three different targeted Google Consumer Surveys to find out how much the average American has saved for retirement. The surveys found that 42 percent of Americans have less than $10,000 saved which according to the Bureau of Labor Statistics is not enough to cover a year’s worth of expenses. Of these same 42 percent, 14 percent of respondents have nothing saved; this, however, has improved from 18.9 percent a year ago.

This study also found that results varied dramatically by age, with older Americans slightly better at saving. Those most likely to have nothing saved are the Millennials of which 57 percent report having $10,000 or less for retirement. Furthermore, 18 percent of this same group, millennials ages 18 to 34 have the highest percentage of respondents with $0 saved.

When it comes to money saved for retirement, women and men have a nearly equal percentage when looking at those who have no retirement savings. However, survey results show that women continue to lag behind men when viewing the results of those who have saved $10,000 or less. The survey found that 45 percent of women have no savings or $10,000 or less, compared with 40 percent of men.

The second study conducted looked at why Americans are not saving by creating a separate survey of more than 1,000 adults who had no money saved. These respondents chose from a variety of answers regarding what factors lead them not to save for retirement. About 40 percent of respondent said, “I don’t make enough money,” and 25 percent stated, “I’m struggling to pay bills.”

Although the most common reason for not saving among all age groups was not making enough money, the millennial generation was more likely to say they do not have retirement saving because “I’m prioritizing to pay down debt” and “job doesn’t offer a plan.” Meanwhile, findings show that 43 percent of women are more likely to report that they are not saving for retirement because they do not make enough money compared to men, at 36 percent. This study concludes that this “may help explain the gap in retirement savings between women and men that the other survey found.”

For more details about these studies go to: https://www.gobankingrates.com/retirement/planning/why-americans-will-retire-broke/

While the findings of these surveys are troubling in general, employees that work prevailing wage projects should be in a better position to accrue retirement savings.

State of the Union: Calls for Unification Around Infrastructure

Last week President Trump delivered his 2019 State of the Union address in which he called upon both parties to unite for a significant rebuilding of America’s crumbling infrastructure. Without going into specific details, the President remarked on the fact that regardless of one’s political position, many campaigned on the same core promise to rebuild and revitalize our Nation’s infrastructure that puts America’s interests first.

In his address, Trump acknowledged Congress’s eagerness to pass an infrastructure bill and his eagerness to work with them on legislation to deliver new and important infrastructure investment, including investments in the cutting-edge industries of the future. He called the need for improved infrastructure not an option but a necessity. 

While lawmakers from both parties broadly agree that more infrastructure investment is required, some areas will require negotiations particularly concerning the amount of federal funding the plan would provide. As it is now, the plan calls for $200 billion in federal government spending, but Democrats have announced that they want to see five times that amount.

The Presidents tone throughout his address was optimistic about achieving a bipartisan plan to rebuild the nation’s infrastructure. After the speech, many Democratic senators weighed in admitting that an infrastructure package could gain support.