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News May 9, 2024

This Week in D.C.

NRCA joins letter to support the Repealing Big Brother Overreach Act

On April 29, NRCA joined with nearly 100 trade associations to send a letter of support for the Repealing Big Brother Overreach Act. This bicameral legislation would repeal the Corporate Transparency Act, which requires onerous and ill-conceived reporting requirements for virtually every small business operating in the U.S. The Corporate Transparency Act took effect this year and requires small businesses and other covered entities to report personal information to the Financial Crimes Enforcement Network to combat illicit financing of “shell companies.” Unfortunately, this legislation does little to catch criminals but does inflict criminal penalties on law-abiding business owners if they do not file this information or fail to follow the confusing definitions regarding who is required to file under this law.

More than 70 representatives send letter supporting Career and Technical Education Perkins State Grants

On April 16, more than 70 members of Congress sent a letter to the Appropriations Committee requesting robust funding for Career and Technical Education Perkins State Grants for fiscal year 2025. Funding for this program has been a top priority for the roofing industry and a frequent advocacy issue during Roofing Day in D.C., the industry’s annual advocacy event. The letter states: “We are grateful that Perkins state grants were funded at $1.44 billion in FY24, an increase of $10 million over the FY23 level. However, adjusted for inflation, FY24 levels are roughly half of the amount of the federal investment made in CTE in 1980, despite the fact that a record number of CTE students—nearly 12 million nationwide—rely on this funding at the secondary and postsecondary level.” As Congress considers funding for fiscal year 2025, we remain hopeful this program will increase in funding despite a tough fiscal environment.

EEOC issues proposed guidance regarding harassment in the workplace

On April 29, the Equal Employment Opportunity Commission issued final guidance, “Enforcement Guidance on Harassment in the Workplace.” This guidance provides detailed information regarding how the agency enforces federal laws that prohibit workplace harassment and provides updated examples of illegal conduct under a wide range of scenarios. Key provisions include updated guidance regarding issues related to pregnancy and childbirth, sexual orientation and gender identity, “virtual” harassment and social media use. The guidance took effect upon issuance April 29. The EEOC also provided a summary of the guidance and Small Business Fact Sheet to assist employers.

NLRB joint employer rule is delayed

On May 3, President Biden vetoed House Joint Resolution 98 to provide congressional disapproval of the National Labor Relations Board’s final rule to modify the standard for determining joint employer status under federal law. Under the rule issued in fall 2023, two or more businesses may be considered joint employers of a group of employees if each entity has an employment relationship with the employees, and if the entities share or co-determine one or more of the employees’ essential terms and conditions of employment. Given widespread opposition to the rule from NRCA and other business organizations, H.J. Res. 98 was approved by the House on a bipartisan vote of 206-177 and in the Senate on a bipartisan vote of 50-48. The House is expected to consider the president’s veto message later this week, but it appears there is insufficient bipartisan support for a successful override of the veto. Additionally, it should be noted implementation of the rule currently is on hold because of a court injunction pending the outcome of litigation challenging the rule.


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