Inside this issue
  Apprenticeship Compliance Delayed  
 

Mandatory Apprenticeship Law compliance extended for 1 year

The enactment date for mandatory apprenticeship participation for all trades with the buy-in option is now 9/9/2022 and not 10/1/2021 as originally planned. After speaking with the Secretary and Deputy Director of the Department of Labor, the bill doesn't go into effect until 1 year after enactment.  The Governor didn't sign the bill until 9/9/2021 which means it is one year from that date (9/9/2022) not 10/1/21 as was originally planned.

It will take DOL 1 year to set up the payment portal for those contractors that want to buy-in to the law for compliance.  Therefore, there is no payment portal that is available or that has been developed right now, meaning that the law can't be enforced since this was part of the legislation.  We are sorry for any confusion this may have caused.  The Office of Management and Budget (OMB) will be sending out a clarification to all contractors, school districts and state agencies. Please note the current law passed in 2019 is still in effect which requires all contractors to be in an apprenticeship program in 1 trade they perform.  

 

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  Delaware Redistricting Status opens public comment  
 

Delaware code requires that there be 41 House districts and 21 Senate districts. Districts must be formed by continuous territory and nearly equal in population with a 5% deviation allowance. This is the first Census in which Delaware will count prisoners by their last address recorded before incarceration, rather than at the prison they currently inhabit. The General Assembly will take into consideration communities of interest, majority-minority districts, and political boundaries. 

Data 

Statewide 

The total population for Delaware stands at 989,948, a 92,014 increase in total population since 2010. Sussex County saw the highest change in population growth with 40,233 individuals. New Castle and Kent saw an increase of 32,235 and 19,541 individuals, respectively. 

District Level 

Below is a table of the districts deviating the most from the ideal population requirements. For house districts 2,293 individuals represent a 10% deviation. For the Senate, 4,478 people represent a 10% deviation. 

House District

Deviation from Ideal

09

8,809

37

5,954

20

5,731

23

-4,442

03

-3,930

14

3,046

16

-2,971

01

-2,828

30

-2,630

15

2,622

Senate District

Deviation from Ideal

6

9,300

12

8,823

14

7,855

20

7,776

2

6,454

5

5,700

3

5,613

15

4,986

7

4,962

8

4,840

 

Public Comment 

Various members of the public stated their concern for fair redistricting lines and communities of interest. Coastal areas of Sussex County were highlighted as high interest communities since their population numbers have greatly increased. Additionally, while many showed their support for the counting of prisoners, there were concerns about the accuracy of previous addresses information and how this would affect mapping. 

Once draft maps are published, the House and Senate will hold individual meetings for the public's consideration. The General Assembly plans to finalize and approve all maps by early November

 

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  Minimum Wage for Federal Contractors to Increase Jan. 1, 2022  
 

On Sept. 15, the U.S. Department of Labor's Wage and Hour Division announced the minimum wage for federal contractors will increase from $10.95 per hour to $11.25 per hour beginning Jan. 1, 2022.

According to a DOL news release, the increase is a result of DOL's 2014 final rule, which implemented Executive Order 13658 Establishing a Minimum Wage for Contractors, and raised the hourly minimum wage paid by contractors to workers on covered federal contracts to $10.10 with annual increases thereafter.

The minimum wage increase to $11.25 per hour is separate from the proposed rule issued by the DOL that would require federal contractors to pay a $15 minimum wage beginning Jan. 30, 2022. Until this rulemaking is finalized and in effect, federal contractors should comply with the $11.25 per hour minimum wage requirement beginning Jan. 1, 2022.

More information on EO 13658 and the annual wage increase can be found on the DOL website, and more information on the proposal can be found in an analysis issued by ABC National's general counsel, Littler Mendelson, P.C.

 

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  ABC Updates COVID-19 Vaccine Toolkit With Latest Resources  
 

In light of changing guidance regarding vaccine policies, ABC has updated resources on the COVID-19 Vaccine Toolkit as part of the Coronavirus Update webpage to help inform and educate members about the latest available resources and information on the COVID-19 vaccine.

The webpage, which includes information from the Centers for Disease Control and Prevention and the U.S. Equal Employment Opportunity Commission, is organized in seven different categories so that members can easily navigate through the available resources:

  1. COVID-19 Vaccines - Important Things to Know
  2. COVID-19 Vaccination for Workplaces
  3. EEOC Guidance on EEO Law and COVID-19 Vaccination
  4. COVID-19 Vaccine Mandates
  5. Common Questions Regarding COVID-19 Vaccines
  6. Additional Resources
  7. ABC National Webinars

Disclaimer: Issues related to COVID-19 vaccination in the workplace are governed by various laws and regulations. The resources available on the COVID-19 Vaccine Toolkit webpage do not convey or constitute legal advice, nor are they intended to be acted upon as such. Employers should consult with counsel for guidance on legal questions related to COVID-19 vaccinations in the workplace.

 

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  Democrats' Budget Reconciliation Package Contains ABC-Opposed Tax and Labor Provisions  
 

House Democrats released additional details on planned tax increases to pay for their $3.5 trillion budget reconciliation package. The House Ways and Means Committee continues to mark up its portion of the budget reconciliation package, and some of the top-line tax provisions already revealed may affect ABC members.

  • A top combined rate on pass-through income of 46.4%. The bill's cap on the Section 199A deduction for pass-through businesses would limit individuals to a $400,000 deduction and married couples to $500,000, along with enforcement of a 3.8% tax on their active business income, a 3% surtax on top earners and an increase in the top marginal rate.
  • An increase in the top marginal individual income tax rate to 39.6% for married individuals filing jointly with taxable income over $450,000, heads of households with taxable income over $425,000, unmarried individuals with taxable income over $400,000, married individuals filing separate returns with taxable income over $225,000 and estates and trusts with taxable income over $12,500.
  • A corporate tax rate hike from 21% to 26.5% for large profitable businesses.*
  • The doubling of the estate tax exemption from the Republican's Tax Cuts and Jobs Act of 2017 would expire at the end of 2021 rather than the end of 2025, along with changes to various valuation and trust rules under the current tax code.
  • A capital gains rate tax hike from 20% to 25% and a top combined capital gains rate of 31.8%.
  • A 3% surtax on the nation's top earners earning over $5 million.
  • An allowance of up to $250 for dues to a labor organization can be claimed as an above-the-line deduction.

* The proposed corporate rate does contain a lower rate of 18% for small businesses (income below $400,000). The 26.5% rate applies only to businesses with income in excess of $5,000,000 and remains at 21% for businesses below that threshold. The proposal does not currently include ABC-opposed provisions that would cap Section 1031 like-kind exchanges and change stepped-up basis for family-owned businesses.

ABC believes that these proposed tax increases would have a devastating impact on ABC members and the economy, making it tougher for many construction businesses to hire new workers and provide competitive pay and benefits for their employees. Last week, ABC sent a letter to the House Ways and Means Committee expressing concerns with the tax proposals and paid leave mandate ahead of the committee's recent markup. ABC also joined coalitions in three additional letters addressing the Section 199A deductionstepped-up basis and Section 1031 like-kind exchanges. The stepped-up basis and 1031 exchange proposals were not included in the Ways and Means package.

Further, the bill creates a "bonus rate" tax credit for contractors and subcontractors that provide prevailing wage rates for employees and provide 5% to 15% of labor hours on a project for "qualified apprenticeships." ABC previously opposed a similar proposal in Sen. Ron Wyden's, D-Ore., partisan Clean Energy for America Act (S. 1298), which was marked up in the Senate Finance Committee. ABC joined a coalition of organizations in highlighting these concerns in a letter to the committee.

Additionally, on Sept. 10, the House Committee on Education and Labor marked up and approved its $761 billion portion of the bill on a party-line vote. It contains provisions similar to policies included in the ABC-opposed Protecting the Right to Organize Act: 

  • $5 million for the implementation of electronic voting in union elections.
  • Financial penalties on employers for unfair labor practices.
  • Personal liability for company directors and officers for unfair labor practices.
  • Prohibitions against employers permanently replacing strikers, employers locking out workers, captive audience meetings and arbitration agreements.

Of note, it is not yet clear if the House of Representatives has the votes to approve this proposal. Additionally, the package must pass through the evenly divided U.S. Senate, where, even if the House is able to include all of these provisions in a final package, they will be subject to change under the Senate Byrd Rule that removes extraneous provisions from budget reconciliation packages.

ABC strongly urges its members to reach out to their members of Congress to voice their concerns with the partisan budget reconciliation package by using the ABC Action Center.

 

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Legislative Committee

Oct. 28

8:30 a.m. 

ABC Classroom