TWO FEDERAL WAGE INCREASES FOR JANUARY 2022
The U.S. Department of Labor’s Wage and Hour Division has announced that federal contractors will receive an increase in minimum wage from $10.95 per hour to $11.25 per hour as of Jan. 1, 2022.
The increase is a result of the DOL’S 2014 final rule, implementing Executive Order 13658, “Establishing a Minimum Wage for Contractors,” and raising the minimum wage of workers on covered federal contractors on an annual basis.
This raise is separate from the current, proposed rule requiring a minimum wage of $15 per hour as of Jan. 30, 2022, and until that rule is finalized, contractors should comply with the prior increase up to $11.25 per hour.
RUSH OF RENTERS CREATES NEW U.S. MARKETS
An influx of renters over the past decade has shaped U.S. suburbs, says a recent RENTCafé study. In the top ten suburbs with heightened changes in renter share, they each saw increases by 55% or more. For example, Maple Heights, Ohio, which placed first on the list, had 25% renter share in 2010. That rose to 47% in 2019, amounting to an 87% difference.
Other suburbs that made the top 10 include Eastpointe, Michigan (83% change); Diamond Bar, California (75%); Carpentersville, Illinois (67%); Horn Lake, Mississippi (64%); Kendale Lakes, Florida (62%); Bel Air South, Maryland (59%); Gurnee, Illinois (56%); Burleson, Texas (55%); and Roseville, Michigan (55%).
Conclusions to the study include that, due to 3.7 million new renters, 103 U.S. suburbs made the switch to becoming renter-majority. For the full study, visit rentcafe.com.
WAYS AND MEANS COMMITTEE APPROVES TAX HIKES
The Ways and Means Committee in the House of Representatives has approved a series of tax increases to assist with payment on the $3.5 trillion budget reconciliation proposal.
Associated Builders and Contractors opposes the increases and has sent a letter to the committee expressing concerns both with what has been included in the proposal and what has been left out, including stepped up basis and Section 1031 like-kind exchanges.
For an extensive, line-by-line analysis of provisions under the proposal that would impact merit shop contractors, see pg xx in this issue.
LABOR SHORTAGE ACTUAL OR PERCEIVED? ANSWERS IN REPORT
NCCI has released an analysis of key drivers of the U.S. labor shortage and how those drivers are likely to change over time.
Takeaways include:
- The perceived labor shortage—the coexistence of record job openings with high unemployment—reflects COVID-related changes in labor supply and the dynamics of labor market re-equilibration during a period of rapidly rebounding demand.
- Workforce participation declined most sharply for women with family responsibilities and for workers over 55.
- Matching unemployed workers to job openings is more difficult now than in the early phase of the recovery due to the exhaustion of worker recalls, increasing skill gaps in particular occupations and a closing employment gap.
- Wage increases in 2021 thus far are concentrated in low-wage service jobs.
- The expiration of expanded unemployment insurance benefits is likely to impact wage and employment changes primarily in leisure and hospitality.
The report, titled “Is There a Labor Shortage?” can be accessed at ncci.com/insights.
OSHA ALIGNS WITH CDC TO COMBAT DELTA
With delta variant cases of COVID-19 on the rise, the Occupational Safety and Health Administration has issued updated guidance in order to align with the Centers for Disease Control and Prevention. While, on its face, the guidance may look like a reiteration from OSHA’s January assessment of COVID-19, the updates include the CDC’s face masking standards and other suggestions, such as a checklist of best practices.
The purpose is to summarize the CDC’s “substantial or high transmission” guidance and assist employers in recognizing and abating COVID-19 hazards in the workplace. As one measure, OSHA “strongly encourages” employers to provide paid time off to workers for the time it takes to get vaccinated and recover from side effects, and to consider working with local public health authorities to provide vaccinations in the workplace. OSHA also suggests that employers “consider adopting policies that require workers to get vaccinated or to undergo regular COVID-19 testing – —in addition to mask wearing and physical distancing –—if they remain unvaccinated.”
For more on the updates and how to manage them, visit Littler Mendelson P.C. at littler.com.
OSHA WORKING TO REDUCE HEAT-RELATED ILLNESS
The Occupational Safety and Health Administration has announced plans, in tandem with the Biden-Harris administration, to protect workers from the hazards associated with extreme heat, both indoors and out.
Planned actions include:
- Issuing an Advance Notice of Proposed Rulemaking on heat injury and illness prevention.
- Implementing an enforcement initiative on heat-related hazards to prevent and protect employees from heat-related illnesses and deaths, which will include interventions and inspections when the heat index exceeds 80°F.
- Developing a National Emphasis Program, which will target high-risk industries and focus agency resources and staff time on heat inspections. The 2022 National Emphasis Program will build on the existing Regional Emphasis Program for Heat Illnesses in OSHA’s Region VI, which covers Arkansas, Louisiana, New Mexico, Oklahoma and Texas.
- Forming a National Advisory Committee on Occupational Safety and Health Heat Injury and Illness Prevention work group to share best practices.
This initiative will apply to both indoor and outdoor worksites. Information on heat-related illnesses can be accessed on osha.gov.
