BUSINESS GROUPS SEEK INJUNCTION AGAINST CONTRACTOR RULE: Business groups requested Thursday evening that a Texas federal court issue an emergency temporary restraining order and preliminary injunction against final regulations from the Obama administration that require federal contractors to disclose previous labor law violations. The final guidance and rule, which implement a 2014 executive order, require companies seeking a federal contracts worth $500,000 or more to disclose any labor law violations they committed during the previous three years. The Obama administration will begin phasing in the regulations October 25. In Thursday’s motion, the business groups warned that “absent preliminary injunctive relief” the rule will cause “irreparable harm to Plaintiffs’ government contractor members.”

The lawsuit, filed last week and led by the Associated Builders and Contractors of Southeast Texas, the Associated Builders and Contractors Inc., and the National Association of Security Companies, alleges that President Barack Obama exceeded his executive authority by issuing the executive order and that current labor law preempts the order because those laws already have remedial provisions for bad actors. In addition, the lawsuit alleges the regulations violate the First Amendment by “compelling speech as to controversial matters on the part of government contractors, forcing them to make public declarations about ‘violations’ which they are contesting or have settled without final adjudication of the claimed transgressions.”

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AZ Daily Sun--Coconino Voices: PRO Act legislation would hurt local businesses

— 05.13.2021 —
By: Julie Pastrik Arizona businesses and workers have had an incredibly challenging year given the economic slowdown that followed in the wake of the coronavirus pandemic. However, local businesses and industries across the state are resilient and on the road to a strong recovery that will mean more jobs for Arizona workers and increased economic development to strengthen our communities. That is, as long as Congress does not move forward with potentially devastating legislation that would hurt local employers and employees alike while impeding our state’s economic recovery. Unfortunately, some members of Congress seem determined to do just that by pushing through the Protecting the Right to Organize (PRO) Act. As harmless as the name may sound, the PRO Act would have serious repercussions for local businesses, particularly smaller ones, while undermining long-standing rights for employees and threatening the growing gig economy that has helped provide much-needed income for so many during this time. Arizona is fortunate to have leaders like Senators Mark Kelly and Kyrsten Sinema, who have both refrained from joining the vast majority of their Democratic colleagues in cosponsoring the PRO Act. In a slap in the face to Arizona workers, the PRO Act removes one of the most fundamental rights a worker has when it comes to voting in elections to determine whether to unionize: the secret ballot. Instead, workers could be forced to sign union authorization cards in front of other employees, their employer, or union organizers. This bill would also destroy workers’ right to privacy by allowing unions access to personal information, including their home address and personal phone number. If that doesn’t open the door to union intimidation and harassment, I don’t know what does. As if that was not bad enough, the PRO Act would create major new challenges for Arizona businesses, making it harder for them to create jobs, expand in their communities, and even keep their doors open. It would redefine what it means to be a “joint employer” under national labor law, greatly complicating existing relationships between franchisors and franchisees as well as between business owners, contractors, subcontractors, and vendors and suppliers. At the same time, it would interfere with attorney-client confidentiality and make it much more difficult for small businesses to secure a legal advice on labor issues. Particularly harmful during these times, the PRO Act would apply a failed policy from California to national labor law by using the “ABC” test to determine whether a worker is an independent contractor or employee. This makes it much harder to qualify as an independent contractor, threatening the freedom and flexibility that tens of thousands of Arizonans find in independent contracting and gig economy work. Ultimately, the PRO Act is bad public policy that only works for union leaders to inflate their falling ranks while threatening workers’ rights, undermining small businesses, and jeopardizing a growing part of our economy. This is not a good solution for Arizona, and Senators Sinema and Kelly should stay firm and not cosponsor this misguided legislation.
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