This week, the MCLA helped secure another win for the business community. The decision in DC, CCDC v. DOL, by the D.C. Circuit Court, applied commonsense reasoning to reject the Department of Labor’s unprecedented attempt to expand the scope of federal law applicable to public works into the private sector. The court confirmed that where a public entity is not party to a construction contract, a “public works” project will not be subject to Davis-Bacon wage regulation, unless the project meets at least one of two criteria: (i) construction with public funding, or (ii) ownership or operation by the government.
The ruling could encourage private developers to seek out further opportunities to lease land from government entities for cost-efficient construction and development of private enterprises, because the risk of being subject to increased wage costs is eliminated if the developers follow the project delivery method used for the CityCenterDC, in which the District was not a party to the construction contracts leased the land to private developers. That being said, there are other similar cases in the legal pipeline, and this decision may be appealed to the U.S. Supreme Court. Notably, the president’s nominee for the Supreme Court was on the panel to hear the case, but recused himself from this decision.
The MCLA will continue to advocate for manufacturers in the courts preventing radical expansion of federal regulations. To learn more about the MCLA, visit our website.
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