The U.S. Supreme Court ruled on Thursday that the federal OSHA ETS mandating employers with 100 or more employees to require its employees to be vaccinated exceeds OSHA’s powers as granted by Congress and therefore is unenforceable. What does this mean?

1.      OSHA ETS: Employers that were subject to the federal OSHA ETS mandate do not need to comply. OSHA could revise its ETS to be narrower, for instance applying the mandate to workplaces that have particular risks of contracting COVID-19.

The majority found that the OSHA ETS targeted general public health concerns, not workplace health concerns. OSHA is designed for the latter and not the former. Plus, there was evidence that Congress did not view OSHA as having this authority. Without a firm legislative mandate, the Court found that the executive branch lacked Congressional authority to impose the ETS and did not reach other arguments such as federal powers. This ruling keeps the door open for more specific workplace rulings, such as healthcare, where the threat of transmission is higher. The ruling also did not touch upon state and local government authorities imposing a mandate.

2.      MN OSHA ETS: Minnesota employers are subject to the Minnesota OSHA ETS. Although an argument could be made that the Supreme Court’s ruling does not apply to Minnesota OSHA, the Department of Labor and Industry clarified that it will suspend enforcement of the MN OSHA ETS pending future developments. DLI’s statement can be found here.

3.      Federal Contractor Mandate: Employers subject to the federal contractor mandate are not affected by this ruling. The federal contractor mandate still is stayed by a Georgia district court ruling and that case is wending its way through the courts. In short, an employer who is subject to the federal contractor mandate does not need to comply but this ruling may change.

4.      Other mandates: There may be other mandates such as client imposed. This ruling does not affect those mandates and contractors may need to comply with the mandates as provided by the parties’ contracts and agreements.

AGC of America hosted a seminar on the COVID mandate developments. In case you missed it, the slides and a recording of the talk are available to members. Email Mike for a copy.

Beginning today (15 January), group health insurance plans must cover the cost of at-home COVID-19 over-the-counter test kits, up to eight per month per person. See these FAQs for more information. 

We continue to hear horror stories of contractors caught in the pincers between large, post-bid material price increases and clients reluctant to adjust the contract price. AGC’s ConsensusDocs 200.1 remains a go-to platform to reach a fair adjustment of price. Our Oct 22 seminar with member attorney Mark Becker analyzes how different contracts may support price adjustments. Email Mike if you would like a link to this recording. As this issue continues to become important, we will look into future seminars.

The House and Senate gavels will strike at noon on Monday, January 31, 2022, when the MN Legislature convenes for the second year of the 2021-2022 legislative biennium. The second year is traditionally focused on public works projects funded through a bonding bill as well as changing or updating policy in law. This year, the Governor, House and Senate will likely consider a supplemental budget to allocate tax revenues that have exceeded budget projections since they passed the $52 billion state budget in June of 2021. The Office of Minnesota Management and Budget (MMB) released the state’s November budget forecast, which projects the state budget to have a $7.7 billion surplus. Driving factors for surplus include the increased revenue were strong consumer spending and corporate profits. Passing a supplemental budget is not a requirement as the funds can be carried over to 2023.

Several issues of note to the construction community will be discussed throughout the session. In addition to a capital investment bill to fund projects, the Legislature will likely deliberate matching funds for the recently passed infrastructure law at the federal level, repayment of the depleted Unemployment Insurance Trust Fund (over $1 billion), continued COVID responses, and worker safety initiatives. Public safety, frontline worker bonus distribution and many other issues will round out various priorities of the politically split legislature, which remains a Democratic majority in the House and a Republican-led Senate. The Minnesota House will continue to meet largely via video in 2022 while the Senate will meet in a hybrid approach with committee hearings both in-person and online.

Through the AGC Legislative Committee and Board of Directors, member companies set AGC of MN’s legislative agenda in key issue areas every year. Thank you to everyone who takes the time to participate in the policy development process. Take a look at our priorities and policies to see the breadth of issues the organization pushes, defends, and monitors during the legislative session.

Throughout the session, AGC’s government affairs team will advocate for our priorities through educating elected officials on construction industry trends and operations, testifying at hearings, monitoring bills, and continuing to lead coalitions in commercial building and transportation areas to maximize our impact. AGC members play a critical role in educating legislators and decision makers. Here are three action items to take right now to help set the stage for collective impact and success this year.

The AGC Supervisory Training Program (STP) is a construction-specific training curriculum developed, updated and field-tested by and for contractors. Supervisory skill—or the lack of it—directly affects every company’s bottom line. You make your money in the field, and STP can help you improve your organization’s investment.

The comprehensive 6-course program focuses on the knowledge and skills that every supervisor must have to be an effective manager of people, time, equipment and materials. Sign your staff up for any or all of the following:

If you attended the Construction Summit, you are eligible for 6 FREE uploads to DocumentCrunch, an AI software that analyzes and creates reports of construction contracts. The registration for these free uploads expires today—be sure to contact DocumentCrunch to get your uploads. Also, please let Mike know about your experiences with DocumentCrunch. We may have future opportunities to partner with them and your feedback will influence our interest.

The National Day of Racial Healing centers around experiences rooted in truth-telling, offering people, organizations and communities a day set aside for racial healing, bringing people together to take collective action for a more just and equitable world. It was started by the Kellogg Foundation in 2017 to bring people together for conversations about how we heal from the effects of racism.

This day is observed every year on the Tuesday after MLK day. The City of St. Paul, City of Minneapolis, City of Brooklyn Park, Ramsey County, and Hennepin County are partnering to bring two cross jurisdictional events to recognize the National Day of Racial Healing – one for staff and one for the community. Ramsey County is co-hosting these events to bring people together, break down barriers and form relationships across the metropolitan area. Racism impacts all of us and we believe we need to create more spaces for our collective healing. Here are the details on the community event:

Click the flyer for more info, or register here.

Starting Jan. 28, certified Targeted Group Businesses and Veteran-Owned Small Businesses may receive a preference of up to 6 percent of the amount of a bid when bidding as a prime contractor. The preference amount is not to exceed $120,000.

Learn more about MnDOT's Small Business Programs. 

There's still time (until February 15)

and become an AGC Annual Partner for 2022!

Check out the media kit

or contact Jennifer to create partnership customized to your needs.