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NRCA supports H. J. Res. 37

Feb. 1, 2017

To All Members of the U.S. House of Representatives

Dear Representative:

NRCA supports H. J. Res. 37, a Resolution of Disapproval that would nullify the Department of Labor's final regulation to implement President Obama's "Fair Pay and Safe Workplaces" Executive Order, which contains new requirements for contractors bidding on federal contracts. NRCA urges you to vote for this Resolution of Disapproval when it comes before the full House.

Established in 1886, NRCA is one of the nation's oldest trade associations and the voice of professional roofing contractors worldwide. NRCA has about 3,500 contractors in all 50 states who are typically small, privately held companies with the average member employing 45 people and attaining sales of about $4.5 million per year.

NRCA strongly opposed this regulation when it was proposed by Department of Labor in 2015 and submitted detailed comments outlining NRCA members' concerns with the regulation. The primary concerns are the regulation will increase costs and provide new risks for employers involved in federal contracting while doing little if anything to make workplaces safer or increase worker compensation. In addition, NRCA believes the new requirements go beyond the statutory authority granted the executive branch by Congress. NRCA's comments urged the Department of Labor to withdraw the regulation, and we were disappointed the agency ignored our views and those of many other business organizations.

The final rule, sometimes referred to as the "blacklisting" regulation, imposes new obligations on most government contractors. Companies bidding on qualifying contracts will have to disclose any violations of 14 federal labor laws, including those under the Occupational Safety and Health Act and Fair Labor Standards Act, that occurred within the past three years, including violations of safety and health rules, collective bargaining, family and medical leave rules, and civil rights protections. New federal compliance officers will determine whether such violations will disqualify a contractor from receiving the contract. Contractors and subcontractors will be required to disclose such violations every six months.

In addition, NRCA believes the economic analysis done by the Department of Labor regarding this regulation was fundamentally flawed and greatly underestimates the costs that would be imposed on employers. For example, the economic cost estimate fails to recognize the new reporting obligations will affect unsuccessful as well as successful bidders on government contracts. It also ignores the fact that prime contractors will be required to collect and report information for each covered subcontractor, which will involve a substantial reporting burden.

To summarize, NRCA believes the final regulation goes beyond the executive branch's authority and if implemented would prove to be counterproductive in making workplaces safer or increasing worker pay. As such, NRCA strongly supports H.J. Res. 37 and urges your support when this Resolution of Disapproval comes before the full house for a vote.

Thank you for your consideration of NRCA's views and concerns.

Click here to view a PDF of this letter.

Sincerely,

Dennis Conway
Commercial Roofers Inc., Las Vegas
NRCA Chairman of the Board



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