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Archive for the ‘Legislation’ Category

TSA Administrator Limits Use of Private Screeners at Airports

Recently, TSA Administrator John Pistole announced that he would essentially stop additional airports from being able to use private screeners under the "Screening Partnership Program." While not many airports (17) are involved in the program, and only a handful of security/screening companies are involved, support for the new policy from influential Democratic members of Congress and public unions, demonstrated a clear anti-private security sentiments that are applicable to all cases where the federal government is using private security. In a blatantly false statement, AFGE president John Gage said the new policy stopping further airports from using private screeners means "(t)he nation is secure in the sense that the safety of our skies will not be left in the hands of the lowest-bidder contractor, as it was before 9/11." Continue Reading…


Department of Labor "Persuader Activity" Rule Changes

By June of this year, DoL intends to publish a proposed rule to expand the scope of employer-consultant reporting required under Section 203 of the Labor-Management Reporting and Disclosure Act (LMRDA). Under the LMRDA, an employer must report any agreement or arrangement with a third-party consultant to persuade employees regarding their collective bargaining rights, or to gather certain information about employee activities or a labor organization in connection with a labor dispute. The labor relations consultant must also report information about such an agreement or arrangement. Continue Reading…


More 'Silent Raids' Over Immigration

The Obama administration intensified a crackdown on employers of illegal immigrants, notifying another 1,000 companies in all 50 states Wednesday the government plans to inspect their hiring records.

Businesses across the U.S. that rely on low-skilled labor are working to stave off Immigration and Customs Enforcement audits, which can lead to the loss of large numbers of employees, reduced productivity and legal expenses. Continue Reading…


Service Contract Act

The U.S. Dept. of Labor has issued an ALL AGENCY MEMORANDUM NUMBER 210 dated June 10, 2011 changing the current Service Contract Act (SCA) Health and Welfare Fringe Benefit. In accordance with 29 C.F.R. Section 4.52, the prevailing health and welfare fringe benefits issued under the McNamara-O’Hara Service Contract Act will be increased on June 17, 2011. Effective June 17, 2011, the new SCA health and welfare benefit will be $ 3.59 per hour and will be posted on the Wage Determination Online and Wage and Hour Division websites. Continue Reading…


High Road Contracting Policy

In 2009, the Obama Administration drafted memos that envisioned changing federal acquisition policy to require positive weight in the federal acquisition source selection process be given to bidders for their labor standards for their workforce. Dubbed the "High Road Contracting Policy", each bidder on a federal contract would be assigned a scored based on labor related criteria that would include whether the bidder pays a livable wage, provides "quality, affordable health insurance," an employer-funded retirement plan and paid sick leave. Other factors would include the company’s record in complying with tax and labor laws. In additions, the labor and employment information would also be systematically collected from all contractors and be made available through a public database. Of most significance, a bidder’s "score" would be based not only on the treatment of its employees working on the government contract but to all company staffers.

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NLRB Rulemaking (Notice Posting Rule and Future Possible Rules)

While the NLRA gives the NLRB rulemaking authority, for 75 years it has been rarely exercised. However, in December 2010, the 3-1 Dem majority (Dems last had majority status is 2001) put out a Notice of Proposed Rulemaking requiring employers, subject to the National Labor Relations Act (NLRA) to post notices informing their employees of their rights as employees under the NLRA. While this posting requirement on its face does not seem a big deal there are some specific and general concerns with the proposed rule. Specifically, in addition to requiring physical posting of paper notices, the rule also requires that notices be "distributed electronically, such as by email, posting on an intranet or an internet site, and/or other electronic means, if the employer customarily communicates with its employees by such means." This could be more problematic for employers. Furthermore, the NLRB has proposed that failure to post the notice would be an unfair labor practice; that a failure to post the notice could be used as evidence of discrimination; and that failure to post would result in tolling the 6-month statute of limitations period for violations of the NLRA.

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U.S. Treasury Phasing Out Mailing of Social Security Checks

The U.S. Treasury has announced that it is phasing out the mailing of Social Security checks to retirees. Beginning May 1, anyone newly applying for Social Security, Veterans Affairs, or other federal benefits will need to choose an electronic payment method. Paper checks will no longer be an option. People currently receiving their federal benefits by paper check must switch to direct deposit by March 1, 2013.

Rosie Rios, the Treasurer of the United States, noted that it costs the federal government 92¢ more to issue a payment by paper check than by direct deposit. That cost is significant, since more than 18 million baby boomers are expected to reach retirement age during the next five years.

In December 2010, the Treasury Department published a final rule to gradually eliminate paper checks for federal benefit payments [Financial Management Service Press Release, 4/26/11].


Lamons Gaskets (Overturning Dana Corp and the right to a secret ballot decertification election)

Last year, the NLRB took up a case (Lamons Gaskets) that it said it would it use to reconsider (and potentially overrule) the 2007 Dana Corp decision which established decertification election parameters. In Dana, the NLRB attempted to harmonize voluntary recognition arrangements made by employers and unions with the need to protect employees’ fundamental right of free choice in choosing (or not choosing) a collective bargaining representative. Under Dana an employer who voluntarily recognizes a union must his notify employees in a posting that voluntary recognition had been granted. After that, for a limited time (45 days following posting), the NLRB would accept a request from employees (at least 30 percent of the unit) to hold an election on the employer recognition of the union (or to join a rival union). Since 2007, 85 petitions have been filed, resulting in the conducting of 54 elections. In 15 of those elections (approximately 28 percent) employees rejected the recognized union. In two of those elections, employees voted to replace the recognized union with a rival.

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Craig Becker Re-Nominated to NLRB

On January 26, 2011, President Obama re-nominated ex-SEIU counsel Craig Becker, who has served as a "recess appointee" on the NLRB since last April, to a full term on the NLRB. A full term would go until 2014 and Becker temporary appointment ends in December 2011. Becker was denied confirmation last year by the Senate before his recess appointment and now with six more GOP members in the Senate, there is no chance for confirmation. The Becker renomination gives unions a rallying issue, but it also seems to contradict recent Obama entreaties to corporate America. However, according to people following the situation, because of the timing of Becker’s recess appointment last year, in order for him to be paid this year, he had to be renominated. Becker cannot be recess appointed again to his current NLRB seat, but he could be recess appointed to another seat if one becomes vacant, and that would allow him to serve until the end of 2012.


"Contracting Crisis" Looming?

"Since Congress has decided to take most of a month off from seriously considering reaching a budget solution, this blog writer decided to do much of the same. Maybe it’s a week late for poor April Fool’s jokes, but my apologies for a prolonged absence. The M&A market has been extremely active (more on this shortly) as Q1 ’11 closed out despite Congress’s debate on the continuing resolution (CR) and the looming possibility of a shutdown. But dominating the news remains the inability of both sides of the aisle to come to an agreement. All week, Congress has continued to make noises as it approaches tomorrow’s deadline of the expiration of the current CR. Early this week, there were signs that a deal may be reached as Democrats indicates a willingness to reduce spending by $33 billion, including the $10 billion already included in the past two CRs. But, little know and realized, is that there is a House rule requiring 72 hours for bills to be reviewed prior to a vote and this simple fact may derail any agreement at this point in the week. As of the writing of this article, hope remains thin, as a meeting between Obama and top congressional leaders led to an all night working session… but still no agreement.

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