Federal Agencies Propose New Project Labor Agreement Rule

A new proposal would require project labor agreements on large federal construction projects with some exceptions. 

The proposed rule was published in the federal register Aug. 19 by the Department of Defense, General Services Administration, and National Aeronautics and Space Administration. 

It stems from President Joe Biden’s Feb. 4 executive order directing that agencies use project labor agreements on federal projects with some exceptions. 

The proposed rule mandates that federal agencies require the use of PLAs for federal construction projects where the estimated cost to the government is $35 million or more. 

The current U.S. Federal Acquisition Regulation, adopted in 2010, does not mandate PLAs. 

Instead, it encourages the use of PLAs for construction projects valued at $25 million or more. 

Federal officials outlined their argument for the need for PLAs with large-scale construction projects, saying there are often many uncertainties associated with the workforce coming from various employers. 

Employers who would be impacted by this rule should submit comments by Oct. 18, 2022.