Time's ticking on DOL's plans for 14(c)

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Sep 23, 2024 View in browser   By Nick Niedzwiadek QUICK FIX OCTOBER SURPRISE?: The Department of Labor is coming up on a year since acting Secretary Julie Su initiated a review of the 14(c) certificate program, which allows qualified employers to pay disabled workers a fraction of the standard minimum wage. Since then agency officials have held a series of listening sessions and other outreach on the topic, which remains a contentious one within the disability community about whether it helps these workers by giving them economic opportunities they otherwise wouldn’t have access to — or is an outdated law that hampers their ability to be fairly compensated for their work. The issue criss-crosses partisan lines and a growing collection of states have in recent years moved to prohibit use of 14(c), though federal legislation has yet to reach escape velocity across several Congresses. It’s an area where Su has notably gone further than her predecessors — including Marty Walsh — who were skeptical that the agency has the authority to overhaul the program without congressional say-so, as The Washington Post reported last month. “Our position is that the law is clear that she is allowed to act,” Julie Christensen, executive director of the Association of People Supporting Employment First, which has lobbied to end the practice of subminimum wages. “But we haven’t gotten any indication where they’re going to come down in terms of this proposal. … Given the timing we’re not sure they want to do anything.” DOL submitted a draft to the White House’s regulatory clearinghouse, an arm of the Office of Management and Budget, at the end of June and the spring regulatory agenda had set a September target to publicly release a proposed rule. However the Office of Information and Regulatory Affairs has yet to finish its review, putting that timeline in doubt. Earlier this year OIRA green-lighted DOL’s workplace heat safety standard in a matter of weeks, whereas a Covid-related rule for health care settings has languished for nearly 2 full years. An OMB spokesperson said it does not comment on pending rules. Regardless, any final action will ultimately be in the hands of whoever wins the November election. More 14(c) news: “Boozman, Cotton ask Biden administration about labor program’s future,” from the Arkansas Democrat Gazette. GOOD MORNING. It’s Monday, Sept. 23. Welcome back to Morning Shift, your go-to tipsheet on labor and employment-related immigration. Send feedback, tips and exclusives to nniedzwiadek@politico.com and lukenye@politico.com. Follow us on X at @NickNiedz and @Lawrence_Ukenye. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You’ll also receive daily policy news and other intelligence you need to act on the day’s biggest stories ELECTION 2024 DEMS FRET 2016 REDUX: The Teamsters’ much-discussed non-endorsement of either presidential candidate has Democrats worried about whether that is a sign that a sizable chunk working-class voters may break toward the GOP this November, our Holly Otterbein and Elena Schneider report. “Hard not to have HRC flashbacks right now, to be honest, that stuff might be wrong beneath the surface,” one Harris-supporting union official told POLITICO. “I hope it’s not.” Publicly party officials and union leaders are expressing confidence, and pointing to Harris’ recent polling strength. But behind the scenes some are less certain. “Candidly, Trump has a solid, solid base of working-class people that have bought into his message,” said Jimmy Williams, president of the International Union of Painters and Allied Trades. “It’s movable and it’s been moving. But it’s not like some tide that’s turned.” More election news: “Harris Makes Undercover Push to Win Over Corporate America,” from The Wall Street Journal. On the Hill ESG WARS: The House last week passed a package of bills aimed at curbing corporate practices tied to social and climate goals, our Jasper Goodman reports for Pro subscribers. The package would limit the types of disclosures the SEC can compel and revamp how the agency regulates shareholder proposals. It also includes provisions to overhaul the proxy voting process and to require banking regulators to report to Congress on their work with international organizations on climate-related financial risks. The legislation is part of a broader GOP effort to discourage investment practices seen as hostile to fossil fuels or aligned with progressive policies, though it is not expected to clear Congress this term. And it comes on the heels of a separate House vote limiting the use of ESG considerations in retirement investment decision-making. — Must be nice: “​​Lobbyists exploit massive loophole to wine and dine lawmakers, aides at fancy getaways,” from POLITICO. More Hill news: “Senate candidate McCormick joins union workers to help save their plant,” from the Washington Examiner. AROUND THE AGENCIES DROPPING THE BALL: The Bureau of Labor Statistics didn’t notice for some 20 minutes that a recent jobs report did not release as planned Aug. 21, according to public records reported by Bloomberg. “It appeared BLS employees didn’t realize there was a delay until users ‘inundated’ them with calls and messages, the records show. The data was supposed to be posted on the agency’s website at 10 a.m. in Washington.” The error is one of several recent snafus that have dinged BLS’ reputation and provided ammunition for some to cast doubt on the accuracy of its data. More agency news: “NLRB Dings Pittsburgh Newspaper For Bad Faith Bargaining,” from Law 360. In the Workplace WHAT’S OLD IS NEW: Amazon and other white-collar employers are steadily paring back their flexible work policies in a push to get workers back in their cubicles, The Wall Street Journal reports. “In a KPMG survey of 400 U.S. CEOs released this week, nearly 80% said that they expected corporate employees to be in offices full time within the next three years. That’s more than double the 34% who said so in April.” The shift is partly due to a tougher labor market that has lessened employers’ fears of workers revolting, though some skeptics view these moves as a way to trim headcount without formal layoffs. More workplace news: “Civil rights groups call on major corporations to stick with DEI programs,” from the Associated Press. IMMIGRATION INJUNCTION JUNCTION: A federal judge in Louisiana partially blocked a Labor Department rule that raised wages for workers H-2A visas following a legal challenge from the sugar industry, Bloomberg Law reports. “District Court Judge Robert B. Summerhays found in an order that plaintiffs were likely to succeed in advancing claims that the agency had exceeded its statutory authority in revising the wage methodology for those jobs.” The judge’s order was limited to the parties of the suit, which included several sugar cane farm operators and a trio of industry groups. A Georgia judge in August similarly poked a hole in a different DOL rule expanding workplace protections for H-2A workers. More immigration news: “Venezuelan Gang’s Path to U.S. Stokes Fear, Crime and Border Politics,” from The New York Times. what we're reading — “How to Keep Uber and Lyft Rides Affordable and Make Drivers Happy,” from Bloomberg. — “What Really Went Down at the Teamsters,” from The American Prospect. — “Tech Jobs Have Dried Up – and Aren’t Coming Back Soon,” from The Wall Street Journal. — “NTEU becomes latest federal worker union to endorse Harris,” from The Government Executive. THAT’S YOUR SHIFT!   Follow us on Twitter Nick Niedzwiadek @nickniedz Lawrence Ukenye @Lawrence_Ukenye   Follow us

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