Labor

U.S. Economic Development Administration Issues Statement On Fiscal Year 2023 Appropriation

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WASHINGTON — U.S. Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo issued the following statement on the Fiscal Year 2023 appropriations for the U.S. Department of Commerce’s Economic Development Administration:

“I am thrilled that President Biden has signed the Consolidated Appropriations Act, 2023 into law, appropriating $1.6 billion* to the U.S. Economic Development Administration (EDA) for Fiscal Year 2023 programming.

“This vital funding enables EDA to significantly expand its targeted and transformational economic development investments that stimulate private funding, create jobs, support our innovators and entrepreneurs, and help those impacted by natural disasters build back stronger.

“Implementation of this funding will strengthen our collective economic and national security, and improve our individual prosperity and wellbeing, enabling the United States to be the global leader in the industries of the future and increasing economic equity among regions across the country.

“EDA will target investments in innovation and competitiveness with a regional and place-based focus, building on the examples set by EDA’s Build to Scale, Build Back Better Regional Challenge, and Good Jobs Challenge programs. Specifically, the law provides:

  • $752.5 million* for grants authorized by Sections 27-30 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3722, 3722a, 3722b, and 3723), as amended, across four programs:
    • $500 million for Regional Technology and Innovation Hubs (Section 28),
    • $200 million for the Recompete Pilot Program (Section 29),
    • $50 million for the Build to Scale program (Section 27), and
    • $2.5 million for the STEM Apprenticeships Talent Challenge (Section 30);
  • $500 million* for infrastructure and other long-term economic recovery efforts for areas impacted by natural disasters in 2021 and 2022; and
  • $363.5* million to fund EDA’s other Economic Development Assistance (EDAP) programs.

“We are grateful to Congress for continuing to place their confidence in EDA as we work to best serve our grantees and their constituents across the country. We are excited to continue to build on EDA’s proud and impactful legacy of spurring equitable, placed-based economic development. Working closely with an expanded network of stakeholders, we look forward to developing the most beneficial programs and making the targeted and transformational investments that build needed capacity and that enable exponential, long-term growth.

“We are excited that we can develop a plan and launch the Regional Technology and Innovation Hubs and Recompete Pilot programs that were authorized under the CHIPS and Science Act. These new programs will stimulate economic growth in communities that may not have had the opportunity to compete before — including communities of color and rural communities — delivering the impactful, place-based programing needed to widely stoke our innovation economy.

“EDA will continue to lead the federal government—and the nation—by designing and executing innovative and effective economic development programs. We will remain committed to promote innovation, cultivate entrepreneurship, help build a well-qualified workforce, and position our economic development partners to be more resilient, agile, and competitive in the global marketplace.”

*includes funding for administration and oversight

American Economy Added 199,000 Jobs in the Month of December 2021

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U.S. Secretary of Labor Marty Walsh issued the following statement on the December 2021 Employment Situation Report:

“Today, the Bureau of Labor Statistics reported that the American economy added 199,000 jobs in the month of December, and the unemployment rate was 3.9 percent, down from 4.2 percent in November. This marks the first time unemployment has been under four percent since the pandemic began, and the largest ever one-year drop in the unemployment rate on record. With strong, steady job growth every month of the Biden-Harris Administration, we added 6.4 million jobs in 2021, reaching 84 percent of the jobs lost at the start of the pandemic recovered, and empowering workers to secure higher wages, especially for low wage workers. 

“In the Department of Labor, we are focused on building an inclusive recovery that lifts up all workers and communities, and that means identifying and addressing persistent inequities as reflected in an increase in Black unemployment in December. We are investing in equity and diversity in job training programs and career services, strengthening health and safety, wage and anti-discrimination protections for the most vulnerable workers, and making sure the President’s Bipartisan Infrastructure Law creates good jobs for every community. We are devoted to empowering all workers morning, noon and night.

“This work is especially important as the Omicron variant of COVID-19 impacts communities across the country this month, including many workers and workplaces. We have the tools to keep people safe, including mask guidance, increased testing capacity, and vaccines that work to prevent severe illness. I urge anyone who is eligible and has not received a vaccine or a booster yet to visit vaccines.gov and find a vaccination site near you. And I urge all employers to provide the flexibility and support necessary to help workers get vaccinated, protect their health, and continue our historic, worker-centered recovery.”

Labor Secretary Walsh reacts to brand new jobs report, Economy added 210,000 jobs in the month of November

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WASHINGTON .D.C., Dec 3rd – U.S. Secretary of Labor Marty Walsh issued the following statement on the November 2021 Employment Situation Report:

“Today, the Bureau of Labor Statistics reported that the American economy added 210,000 jobs in the month of November, and the unemployment rate was 4.2 percent, down from 4.6 percent in October. With more people entering the job market and an unemployment rate approaching pre-pandemic levels three years ahead of projections, the Biden-Harris Administration continues to deliver a historic, worker-centered recovery. We are committed to an inclusive recovery and among the highlights of this report were major reductions in the unemployment rates for Black workers, Hispanic workers, and workers with less than a high school diploma. ”

“The President’s Bipartisan Infrastructure Law will drive more job growth in the months and years ahead, and at the Department of Labor we are focused on making sure those new jobs are good jobs with access for all through proven pathways like Registered Apprenticeship. Moving forward, the President’s Build Back Better plan is the key to both reducing the biggest costs working families face and increasing equity in our labor market by investing in the care needs that keep so many women, especially Black women, from fully participating in our economy. We are committed to supporting all workers and their families morning, noon and night. ”

“As the holiday season begins, to stay safe and keep our economy moving forward I urge everyone to remain vigilant about COVID transmission and committed to getting yourself and your family vaccinated and boosted as soon as you are eligible.”

Manufacturing Continues to be Among Top Five Largest Employment Sectors

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It’s no secret the manufacturing sector has a major impact on the U.S. economy, and every year Manufacturing Week offers an opportunity to recognize this sector’s significant impact on the nation. Manufacturing Week is designed to coincide with Manufacturing Day, which has been held the first Friday in October since 2011.

U.S. Census Bureau’s 10th-anniversary celebration of Manufacturing Week.

Manufacturing Week expands upon the traditional Manufacturing Day launched by the Manufacturing Institute in 2011. The Census Bureau is celebrating the 10th anniversary by providing a worth of rich content & statistics that inform businesses and policymakers.

STATEMENT BY U.S. SECRETARY OF LABOR SCALIA ON THE SEPTEMBER JOBS REPORT

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WASHINGTON, DC – U.S. Secretary of Labor Eugene Scalia issued the following statement on the September 2020 Employment Situation Report:

“Today’s report shows 877,000 private-sector jobs added back in September, and an additional 145,000 jobs from July and August. However, the report reflects a seasonally-adjusted loss of 350,000 jobs in public and private education. Large gains were made in lower-wage jobs in retail and leisure and hospitality, and manufacturing added 66,000 jobs, its largest increase since June. ”

“More than half the jobs lost from the pandemic have now been restored, and the third quarter ended with a 7.9 percent unemployment rate, half the15.8 percent third quarter unemployment rate projected by the Congressional Budget Office in May.”

Remarks by Wilbur L. Ross at the Manufacturer & Business Association Roundtable in Erie, Pennsylvania

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Thank you, Mark, for that kind introduction, and for hosting us here at the MBA Conference Center. And congratulations on 115 years of your company providing goods and services to the many generations of industrial firms that have benefited from your longevity. It says a lot about your company culture for it to have weathered countless downturns, big changes in technology, and the rise of global competitors. That’s quite an achievement.

Thank you also, John, for hosting us, and a special thanks to your members. Your organization is essential in helping companies connect with each other and to national networks to solve mutual problems. I know this is especially important in these challenging times.

We need more organizations like yours promoting the benefits of manufacturing and industry to the U.S. economy. Since fostering economic growth is job number-one for all of us, today is significant for American producers.

July 1 is the first day that the U.S. Mexico Canada Agreement enters into force – and this ground-breaking trade agreement couldn’t come at a better time. It fortifies the world’s largest trading block, and it provides American companies with a level playing field on our own continent for the first time since 1994. USMCA is the result of President Trump’s unwavering commitment to rebalance U.S. trade in favor of American producers and American workers. The agreement should be of particular help to Pennsylvania, the country’s tenth largest exporting state, and the backbone of our manufacturing economy.

Last year, Pennsylvania’s exports to Canada and Mexico topped $15 billion, representing 36 percent of the state’s total global exports. USMCA’s new rules of origin will help rebuild U.S. production that was outsourced to Asia, and it will go a long way to re-establishing domestic supply chains in many industrial sectors. USCMA increases North American content of vehicles to 75 percent, and it requires that up to 45 percent of the value of passenger cars be made by workers earning an average base-wage of at least $16 an hour.

Now, we finally have an agreement that levels the playing field for American workers. With the economic lockdowns required by the coronavirus pandemic, the last three-and-a-half months have not been easy for anyone.

More than 15,000 workers have been furloughed in Erie, 10 percent of whom were employed in manufacturing. Thankfully, most manufacturers have been proactive ─ and creative ─ in re-engineering production lines to protect their employees. Many have switched to producing life-saving PPE, and we are grateful for your doing so. As a result, there have been far fewer layoffs in manufacturing than in many service sectors.

We also hope the worst of the downturn is behind us. May’s job numbers were encouraging, as nearly 200,000 Pennsylvanians returned to work, with more than 25,000 of them headed back into manufacturing plants. Moreover, Pennsylvania’s unemployment rate remained below the national average.

One hopeful sign for a speedy recovery is reflected in the U.S. savings rate that has increased to 23.1 percent. Total bank deposits have jumped by $2.1 trillion during the past four months. It means that our financial institutions are sound, as compared to 2008. And as the economy opens with pent-up demand, these consumer savings will be spent in local businesses with more workers being rehired. Already, we are seeing healthy and record increases in retail sales.

Your region’s commitment to manufacturing should bode well for a strong recovery. As the one-time “Boiler and Engine Capital of the World,” Erie now supports more than 18,000 manufacturing jobs. At 17 percent of the local labor force, this is double the national average of 8.5 percent.

In the global competition for jobs and industries, Erie has many advantages, including:

• Your central location between major metropolitan areas;

• Your eight Opportunity Zones that will generate new investment in the downtown area.

• Your skilled workforce and excellent education and training institutions such as Penn State Erie, the Erie Business Center, and many others;

• The fact that you have such a diverse group of industries within your midst;

• An attractive cost of living and the availability of affordable housing;

• And an incredible setting overlooking one the world’s largest and most pristine fresh-water lakes.

• We hear there is a healthy stock of more than 100 million two-year-old walleye in Lake Erie right now ready to be caught by anglers.

You also have some great employers. Wabtec generated $2.7 billion in economic activity in Erie County alone, and the plastics industry has emerged as an economic force, with 10 percent of the nation’s plastics either manufactured or finished in Erie. I look forward to touring one of your area’s outstanding manufacturers later this morning, when we visit 91-year-old Howard Industries.

Now, I am eager to hear your ideas on how we can work together to accelerate our economic recovery, re-shore our industries, and generate thousands of great jobs for the workers of Erie and Northwestern Pennsylvania.

Thank you.

U.S. DEPARTMENT OF LABOR ISSUES INTERIM FINAL RULE TO IMPLEMENT PROVISIONS OF THE UNITED STATES-MEXICO-CANADA AGREEMENT

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WASHINGTON, DC – The U.S. Department of Labor today announced an interim final rule providing regulations necessary to implement and administer the high-wage components of the Labor Value Content (LVC) requirements set forth in the United States-Mexico-Canada Agreement (USMCA) and the treaty’s implementing statute. The rule provides needed guidance to producers of motor vehicles covered by the USMCA, describing criteria they must meet to qualify for preferential tariff claims under the treaty.

The LVC requirements promote more high-wage jobs for the U.S. automobile and auto parts industry by requiring that, to qualify for preferential tariff claims under the treaty, manufacturers must produce a significant portion of certain motor vehicles using high-wage labor. Among other requirements, the treaty requires that for a passenger vehicle, light truck or heavy truck to be eligible for preferential tariff treatment, a minimum percentage of the cost of the vehicle must be made at a facility that pays an average hourly base rate of at least $16 per hour.

“Through the USMCA, the United States is establishing more balanced, reciprocal trade that supports high-paying jobs for Americans and grows the North American economy,” said Secretary of Labor Eugene Scalia. “The USMCA recognizes that international trade, investment and economic growth are promoted through the protection and enforcement of labor rights and the improvement of working conditions. This is a significant win for the workforce in the American auto industry, and helps level the playing field for U.S. manufacturers.”

To qualify for preferential tariff treatment, a producer must file a certification with U.S. Customs and Border Protection (CBP) demonstrating that its production of covered vehicles meets the high-wage components of the LVC requirements. WHD, in conjunction with CBP, will review those certifications.

“The Wage and Hour Division is proud to support this new law through our role in the certification and verification process,” said Wage and Hour Division Administrator Cheryl Stanton. “The interim final rule we published today ensures that manufacturers and other stakeholders understand the specific requirements and procedures for claiming preferential tariff treatment, and it provides transparency into the process.”

The interim final rule is effective July 1, 2020 and is available for review and public comment for 60 days. The Department encourages interested parties to submit comments. The interim final rule, along with the procedures for submitting comments, can be found at the Wage and Hour Division’s interim final rule website.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of America’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child-labor requirements of the FLSA. WHD also enforces the paid sick leave and expanded family and medical leave provisions of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration-related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

DOL ISSUES FINAL RULE TO SIMPLIFY RETAIL OR SERVICE ESTABLISHMENT EXEMPTION

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WASHINGTON, DC – The U.S. Department of Labor today announced a final rule to provide greater simplicity and flexibility to retail industry employers.

Provisions in the Fair Labor Standards Act (FLSA) allow employers in retail and service industries to exempt certain employees paid primarily on a commission basis from overtime.

Today’s rule withdraws two provisions from the Department’s Wage and Hour Division regulations. The first listed industries that the Department previously viewed as having “no retail concept,” which made them ineligible to claim the exemption. The second listed industries that, in the Department’s view, “may be recognized as retail,” and were potentially eligible for the exemption. As the rule explains, some courts have questioned whether these lists lack any rational basis.

By withdrawing these two lists, establishments in industries that had been on the non-retail list may now assert that they have a retail concept and—if they meet the existing definition of retail and other criteria—may now qualify for the exemption. Insofar as these establishments were deterred from availing themselves of the exemption and its flexibilities, they may now do so if they qualify—including by having more flexibility to work with workers on commission-based pay arrangements. For these employers and workers, they could consider whether, for instance, more commission-based pay is sensible.

Establishments in industries that were on the “may be” retail list may continue to assert they have a retail concept.

Moving forward, the Department will apply the same analysis to all establishments to determine whether they have a retail concept and qualify as retail or service establishments, promoting greater simplicity and flexibility for employers and workers alike.

“This final rule unshackles job creators in the retail space who had previously been categorically excluded from the exemption without notice and comment,” said Wage and Hour Division Administrator Cheryl Stanton. “Permitting all retail employers to potentially qualify for this exemption can increase flexibility for businesses and workers. Eliminating confusion empowers job creators to grow their businesses, comply with the law and provide even more good jobs for American workers.”

The Department is issuing this rule without notice and comment, and it will take immediate effect. Neither notice and comment nor a delayed effective date are needed because both lists being withdrawn were interpretive regulations originally issued in 1961 without notice and comment or a delay.

BLS publishes statistics on workers’ injuries and illnesses in 2018

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There were 900,380 nonfatal workplace injuries and illnesses in the private sector in 2018 in which the injured or ill worker took a least one day away from work to recuperate. This was essentially the same number reported for 2017. The incidence rate remained unchanged in 2018 at 89.7 cases per 10,000 full-time workers. In 2018, the median days away from work to recuperate was 8 days, the same as reported in 2017.

Workers in transportation and material moving occupations experienced 184,470 injuries and illnesses in 2018 that resulted in days away from work. That was 20 percent of all the cases that resulted in days away from work. The incidence rate for transportation and material moving workers was 193.7 cases per 10,000 full-time workers. These workers took a median of 13 days away from work to recuperate from their injuries and illnesses.

Building and grounds cleaning and maintenance workers had 54,400 injuries and illness in 2018 that resulted in days away from work. The incidence rate for these workers was 166.0 cases per 10,000 full-time workers. They took a median of 7 days away from work to recuperate from their injuries and illnesses.

These data are from the Injuries, Illnesses, and Fatalities program.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Transportation and material moving workers experienced 184,470 injuries and illnesses in 2018 on the BLS website (visited December 07, 2019).

U.S. DEPARTMENT OF LABOR INVESTIGATION RESULTS IN MINNESOTA FOUNDRY PAYING ENGINEER $190,357 FOR H-1B VISA VIOLATIONS

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MINNEAPOLIS, MN

The H-1B visa program permits American employers to employ nonimmigrants to work temporarily in specialized occupations in the U.S. when they cannot otherwise obtain needed business skills and abilities from the U.S. workforce.

The ARB and an administrative law judge upheld WHD’s findings that ME Global Inc.

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ME Global Inc. also failed to maintain documentation required by the LCA such as documentation of the prevailing wage, scope of work, and method used for determining wages rates and failed to post information about the LCA in employment locations.

The law establishes certain standards in order to protect similarly employed U.S. workers from being affected adversely by the employment of the nonimmigrant workers, as well as to protect the H-1B nonimmigrant workers.

For more information about wage laws enforced by WHD, contact the Division’s toll-free helpline at 866-4US-WAGE (

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation’s workforce.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.