Kotek Signs Executive Order Mandating PLAs on State Projects

Schwabe, Williamson & Wyatt PC
Contact

Schwabe, Williamson & Wyatt PC

  1. Mandatory Use of PLAs, where labor costs represent 15% or more of total costs.
    • Contractors and subcontractors must agree to a PLA for these projects, ensuring the involvement of labor organizations.
    • The PLA Order requires “every contractor and/or subcontractor engaged in construction of the project to agree, for that project, to negotiate or become a party to a project labor agreement with one or more appropriate labor organizations.”
  2. Equity in Contracting Through PLAs
    • State agencies must set goals for using certified diverse businesses, tracking progress, and reporting data to promote racial and gender equity.
    • There are requirements to track labor data to ensure inclusivity by utilizing a payroll system or equivalent for reporting.
  3. PLA Required Terms
    • The PLA must guarantee no strikes, lockouts, or other disruptions, with mechanisms in place to resolve disputes quickly.
    • It should promote cooperation on productivity, safety, and quality issues.
    • PLAs must comply with all relevant federal and state laws.
    • Must not exclude open-shop or local firms.
  4. Exemptions to PLAs
    • Certain projects are exempt from PLAs, such as those where no public funds are used; emergency projects, minor repairs, and maintenance; or short-duration projects with limited complexity, or involve one craft or trade.
    • Agency directors can request an exemption from the Governor before the contract is advertised.
  5. Implementation:
    • The order is effective immediately for contracts awarded from this date onward.
    • Solicitations and contracts that are planned for advertisement but have not been awarded can opt for the exemption until March 31, 2025.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Schwabe, Williamson & Wyatt PC

Written by:

Schwabe, Williamson & Wyatt PC
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Schwabe, Williamson & Wyatt PC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide