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ARTICLE · 09 FEBRUARY 2022

Biden Administration Requires Labor Agreements For Federal Construction Projects

Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
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On February 4, 2022, President Joe Biden signed an Executive Order ("EO") requiring project labor...

United StatesGovernment, Public Sector

On February 4, 2022, President Joe Biden signed an Executive Order ("EO") requiring project labor agreements (each a "PLA") with unions on all federal construction projects valued at $35 million or more (defined in the EO as "Large-scale construction projects"). 

The EO mandates that federal agencies awarding large-scale construction projects or obligating funds pursuant to such a contract require every contractor or subcontractor engaged on the project to agree to negotiate or become a party to a PLA. A PLA is a binding, pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project. The PLA requirement established by the EO is intended to assist the efficient and timely completion of large-scale construction projects by providing the various employers on a project with a single set of terms and conditions of employment, including a single dispute resolution

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