New York SBDC Research Network

By Peter C. Earle From the American Institute for Economic Research You’re a construction company, an agricultural concern, or a manufacturing firm — all similarly unable to undertake infrastructure projects, fill freight trains with crops, or produce the countless scores of products the market seeks. This is exactly the situation the United States finds itself in now. And it is worsening. Last year, the Associated General Contractors of America reported that 80 percent of its 27,000 member firms are having a difficult time filling openings for hourly craft workers. And the crisis extends far beyond construction: in many subsectors of agriculture, home care, transportation, and manufacturing, the same phenomena are being reported. An estimated 8 million people, representing 5 percent of the entire U.S. workforce, are either fleeing or laying low. Each is reporting lower productivity, longer production times, higher explicit costs, and perhaps worst of all a massive explosion o

Per the New York Times: The National Labor Relations Board in Washington on Thursday made it substantially easier for unions to bargain for higher wages and benefits, potentially opening the door for organized workers at fast food chains and other franchises to negotiate with the larger corporations, like McDonald’s and Yum Brands, rather than with individual restaurants, where they would have a harder time achieving their goals. The ruling, which may eventually be challenged in court in a variety of individual disputes, changes the definition of a crucial employer-employee relationship that had held in some form since the 1980s. Now, a company that hires a contractor to staff its facilities may be considered a so-called joint employer of the workers at that facility, even if it does not actively supervise them. A union representing those workers would now be legally entitled to bargain with the upstream company, not just the contractor, under federal labor law.

 The U.S. Department of Labor announced a proposal to clarify federal contractors' requirements to prohibit sex discrimination. The recommended changes would revise the Office of Federal Contract Compliance Programs' guidelines to align with laws, court decisions and societal changes since they were originally issued in 1970. "Our sex discrimination guidelines are woefully out of date and don't reflect established law or the reality of modern workplaces," said OFCCP Director  Patricia A. Shiu . "We owe it to the working women of America — and their families — to fix this regulatory anachronism so there is no confusion about how federal contractors must comply with their equal opportunity obligations."

The U.S. Department of Labor announced two final rules to improve hiring and employment of veterans and for people with disabilities. One rule updates requirements under the Vietnam Era Veterans' Readjustment Assistance Act of 1974; the other updates those under Section 503 of the Rehabilitation Act of 1973. For more than 40 years these laws have required federal contractors and subcontractors to affirmatively recruit, hire, train and promote qualified veterans and people with disabilities respectively. "In a competitive job market, employers need access to the best possible employees," said Secretary of Labor Thomas E. Perez. "These rules make it easier for employers to tap into a large, diverse pool of qualified candidates." "Strengthening these regulations is an important step toward reducing barriers to real opportunities for veterans and individuals with disabilities," said Patricia A. Shiu, director of the department's Office of Federal C

In July 2013, the Bureau of Economic Analysis (BEA) released its 14th comprehensive revision of the national income and product accounts (NIPAs). Comprehensive, or benchmark, revisions oc­cur roughly every 5 years and incorporate significant improve­ments aimed at better reflecting a dynamic economy. This year’s comprehensive revision included changes to the way the NIPAs treat research and development; movies, books, television shows, and other artistic originals; pension contribu­tions; and residential assets. This month, we’re pleased to provide an article summarizing the main changes and their effect on key NIPA measures. In general, the picture of the economy shown in the revised estimates is similar in broad outline to the picture shown in the previous estimates.

The popular belief is that environmental regulation must reduce employment, since such regulations are expected to increase production costs, which would raise prices and thus reduce demand for output, at least in a competitive market. Although this effect might seem obvious, a careful microeconomic analysis shows that it is not guaranteed. Even if environmental regulation reduces output in the regulated industry, abating pollution could require additional labor (e.g. to monitor the abatement capital and meet EPA reporting requirements). It is also possible for pollution abatement technologies to be labor enhancing. In this paper the writers analyze how a particular EPA regulation, the so-called “Cluster Rule” (CR) imposed on the pulp and paper industry in 2001, affected employment in that sector. Using establishment level data from the Census of Manufacturers and Annual Survey of Manufacturers at the U.S. Census Bureau from 1992-2007 they find evidence of small employment declines

Someone posted this question: "I have a client who has a business with 24 employees. She wants some employees to work more than 40 hours, but can't afford to pay overtime wages. Does anyone have experience with labor laws for these types of businesses? Is she right that she can't have people work more than 40 hours? Any insight or direction you have would be welcome." Here are a couple sources of information- Overtime pay An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. The Fair Labor Standards Act (FLSA) , which prescribes standards for the basic minimum wage and overtime pay, affects most private and public employment. Further - Compliance Employees of firms which are not

Recently, the U.S. Department of Labor released an updated version of its " Employment Law Guide ". Here's a description of it, from a DOL press release: "The Guide helps the public - workers and employers - understand many of the laws affecting the workplace. For instance, it helps small businesses develop wage, benefit, safety and health, and nondiscrimination policies . . . The updated version addresses recent and important changes in employment laws, including the increase in the federal minimum wage and an expansion of the Family and Medical Leave Act . . ." They also stress how helpful this guide can be to those businesses that do not have a dedicated human resources person on staff. Keep this in mind for clients who fit that description, as they (obviously) are still beholden to labor law.