New Executive Order Requires Project Labor Agreements on Large Federal Construction Projects

On Friday, February 4, 2022 President Joe Biden signed Executive Order 14063, requiring project labor agreements (PLA) for all federal construction projects costing more than $35 million. PLAs are agreements between contractors and one or more labor organizations that establish the terms and conditions of employment, such as wage rates and benefits, for specific construction projects. Because of their project-based specificity, the terms and conditions of a PLA often (depending upon the PLA’s terms) supersede the provisions of an existing, but more geographically generalized, area collective bargaining agreements (CBA).

The order takes effect immediately and will apply to many of the projects funded by the recent infrastructure bill.

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