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January Federal Labor Update

A national expert on issues related to the American workforce, Molly Conway delivers AFFT’s monthly federal update to keep you apprised of the latest in DC. If you’re a federal employee, you won’t want to miss this.


We’re back with the latest edition of AFFT’s Monthly Federal Labor Policy Update – covering top-line developments in federal labor and employment policy. In January, Congress kicked the proverbial funding can down the road – yet again – sending a Continuing Resolution (CR) to President Biden that gives Congress until March 1 to pass the first tranche of appropriations bills (military construction and the Departments of Veterans Affairs, Housing and Urban Development, Agriculture, and Energy). Funding for the remaining agencies (including Labor and its related agencies) expires March 8. Overall funding totals for Fiscal Year 2024 were agreed to by House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer, but they did not have time to negotiate the details before the first expiration date of the last CR on January 19. 

With strong bipartisan support, the House passed a $78 billion tax package, restoring some business tax breaks and increasing the Child Tax Credit. Of note, the package did not increase the cap on the state and local tax deduction (aka SALT) for married couples who file jointly – but House leadership agreed to hold a vote on separate SALT legislation shortly. The tax package is now over to the Senate where it will likely be amended before being sent back to the House for another vote.    

The Senate is expected to consider the border security and Ukraine aid deal the week of February 5 before leaving for a two week recess.

With the President’s Day holiday, the House is in session for three weeks and the Senate is in session for two weeks in February. We’ll closely watch what does (or does not!) happen during their short time in DC this month and report back in March.

What’s Happening (or Not) in Congress

  • On January 4, more than 30 Senate Democrats sent a letter to 13 non-unionized automakers urging them to commit to neutrality agreements with the united Auto Workers’ Union at their manufacturing plants. A neutrality agreement is a contract between an employer and a union in which the employer agrees to not interfere in a union’s efforts to organize a workplace.
  • On a related note, House Committee on Education and the Workforce Chairman Virginia Foxx (R-CA) recently penned an op-ed entitled, “Big Labor’s Neutrality Agreements Must be Stopped.”
  • On January 8, the House Bipartisan Paid Family Leave Working Group released a policy framework of legislative options to provide more families with more paid leave. The four pillars of the framework are: (1) a public-private partnership pilot; (2) coordination and harmonization of paid leave benefits across states; (3) small employer pooling for paid leave insurance; and (4) improvements to paid leave tax credits for small businesses and working families. The Group plans to explore these pillars with various stakeholders on a bipartisan basis in the coming year.  
  • Separate from the Group’s efforts, Senators Angus King (I-ME) and Deb Fischer (R-NE) will soon introduce legislation to incentivize employers to provide paid family and medical leave through tax credits. A summary of the bill is available here.
  • On January 11, Erika McEntarfer was confirmed by the Senate to serve as Commissioner of Labor Statistics at the U.S. Department of Labor’s (DOL) Bureau of Labor Statistics (BLS).
  • On January 12, the House voted in favor of a Congressional Review Act Resolution of Disapproval (CRA) to overturn the National Labor Relations Board’s (NLRB) Joint Employer rule (see the November update for more background). Eight Democrats joined Republicans to invalidate the rule. The CRA now awaits Senate action before the rule goes into effect on February 26.
  • On January 22, Senate Committee on Health, Education, Labor, and Pensions Ranking Member Bill Cassidy (R-LA) sent a letter to major meat producers and chemical companies that reportedly violated federal law by employing children in hazardous jobs. The letters request the companies provide data regarding how they are holding their employees accountable and how they have changed their policies.

Committee Action

  • On January 11, the House Committee on Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions held a hearing entitled, “Lowering Costs and Increasing Access to Health Care with Employer-Driven Innovation.” Subcommittee Chairman Bob Good (R-VA) held the hearing to “examine innovative methods and payment models such as direct contracting, centers of excellence, onsite clinics, and high-performance networks that have the potential to lower costs while increasing quality of care for employees.”

    • The list of witnesses and recording of the hearing are available here.
    • Chairman Good’s opening statement is available here and Ranking Member Mark DeSaulnier’s (D-CA) opening statement is available here.
  • On January 17, the House Committee on Oversight and Government Reform Subcommittee on Cybersecurity, Information Technology, and Government Innovation held a hearing entitled, “Toward an AI-Ready Workforce.” Chairwoman Nancy Mace (R-SC) held the hearing to discuss “how to equip public sector workers with AI skills and how the government can apply best practices from private-sector AI learning programs to the federal workforce.”

    • The list of witnesses and recording of the hearing are available here.
    • Chairwoman Mace’s opening statement is available here and Ranking Member Gerry Connolly’s (D-VA) opening statement is available here.
  • On January 18, the House Committee on Education and the Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education held a hearing entitled, “Preparing Students for Success in the Skills-Based Economy.” Subcommittee Chairman Aaron Bean (R-FL) held the hearing to “explore both traditional and alternative programs and pathways for education and credentials that prepare individuals to work in AI-related roles.” 

    • The list of witnesses and recording of the hearing are available here.
    • Chairman Bean’s opening statement is available here and Ranking Member Suzanne Bonamici’s (D-OR) opening statement is available here.


Executive Branch

Department of Labor

  • On January 15, DOL’s annual inflation adjustment for federal civil penalties went into effect, increasing penalties by 3.2 percent for the Occupational Safety and Health Administration and child labor violations, among others.  
  • On January 23, DOL’s BLS released its annual union membership data for 2023. The overall union membership rate hit another record low, decreasing from 10.1 percent in 2022 to 10.0 percent in 2023. Additional highlights and comparisons to 2022 are below:
    • Public Sector Unions. The public sector union membership rate decreased by 0.6 percent to 32.5 percent. For comparison, in 1983 (the first comparable data set) the union membership rate was 36.7 percent. The number of union workers in the public sector also decreased by 52,000.
    • Private Sector Unions. The private sector union membership rate remained unchanged at 6.0 percent. For comparison, in 1983 the union membership rate was 16.8 percent. The number of union workers in the private sector increased by 191,000.

Federal Labor Relations Authority

  • An Administrative Judge with the U.S. Department of Agriculture filed suit against the Federal Labor Relations Authority (FLRA)—the federal government agency tasked with administering the labor-management relations program for non-Postal federal employees—seeking to end union representation of a bargaining unit that includes professional and nonprofessional employees. The lawsuit alleges there wasn’t a required vote of a majority of the professional employees agreeing to be included in a bargaining unit with nonprofessional employees. The lawsuit further alleges the FLRA destroyed or otherwise failed to maintain vital records as to the original union election in 1998, in violation of federal law.

Nominations

  • On January 8, Cathy Ann Harris was renominated to be Chairman of the Merit Systems Protection Board (MSPB). Harris joined the MSPB in June 2022 and currently serves as Acting Chairman of the MSPB. Harris was renominated by President Biden after her initial nomination was returned by the Senate at the end of the First Session of the 118th Congress.
  • On January 8, Colleen Duffy Kiko was renominated by President Biden to be the Republican Member of the FLRA. Kiko has served as a Member of the FLRA since December 2017. Kiko was renominated by President Biden after her initial nomination was returned by the Senate at the end of the First Session of the 118th Congress.
  • On January 8, Suzanne Elizabeth Summerlin was renominated by President Biden to be General Counsel of the FLRA. Summerlin previously served as Associate General Counsel for the National Federation of Federal Employees and is currently Deputy General Counsel and Deputy Executive Director for the Federal Education Association. Summerlin was renominated by President Biden after her initial nomination was returned by the Senate at the end of the First Session of the 118th Congress. 
  • On January 11, Anne Marie Wagner was nominated by President Biden to be a Member of the FLRA. Wagner previously served as Vice Chair of the Merit Systems Protection Board and is currently Associate Special Counsel at the Office of Special Counsel. This is President Biden’s second nomination for this position; Nancy Anderson Speight’s nomination was withdrawn in October 2023.

U.S. Supreme Court

  • On January 17, the U.S. Supreme Court heard arguments in two cases challenging the Chevron doctrine regarding a federal agency’s interpretation of federal law and the deference courts provide to that interpretation.

2024 Presidential Candidates

  • On January 31, Former President Donald Trump attended a roundtable with the Teamsters Union in DC. The Teamsters invited all presidential candidates to meet with its leadership and rank-and-file members. 

State and Local Spotlight

In the absence of significant labor and employment lawmaking at the federal level due to a divided Congress, states are increasingly considering or enacting policy changes in this space. Throughout each month, we provide state-specific updates on labor-related happenings on our Latest News page. ICYMI in January: 

That’s it for January.  We’ll be back in February with an update on government funding, border security and aid for Ukraine, and whether or not the Senate can move the tax bill across the finish line – all with only two Senate work weeks in February.  Stay tuned!   

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