Anjali Katta is a student at Harvard Law School.
In today’s news and commentary, Senate Republicans push back against Project Labor Agreements and two rulings compelling arbitration for workers.
Senate Republicans are pushing back against President Trump’s decision to maintain a Biden-era rule requiring project labor agreements (PLAs) for federal construction contracts over $35 million. Supporters of PLAs argue that PLAs facilitate better wages for workers, more efficient projects, lower costs, and increased quality. Nearly two dozen GOP senators on the other hand, argue that the rule inflates costs, delays projects, and excludes non-union contractors. Despite their concerns, the Trump administration reaffirmed support for PLAs. The move comes after Defense Secretary Pete Hegseth said in February that he was directing the U.S. Defense Dept. to remove language requiring PLAs from contracts worth $35 million or more, and after the U.S. General Services Administration said that it was also removing PLA requirements from its land port of entry projects. Without further action, major conflict between Trump and Senate Republicans appears unlikely.
BNSF Railway won a legal battle against the Brotherhood of Maintenance of Way Employees, which sought to resolve a subcontracting dispute in federal court rather than through arbitration. The Eighth Circuit ruled the case involved a “minor” dispute under the Railway Labor Act, and thus, the matter must go to arbitration rather than to court. The union claimed BNSF violated the Act’s duty to make “every reasonable effort” to uphold labor agreements, but the Court rejected this argument, aligning with reasoning from Seventh and Eleventh Circuit rulings.
Amazon and its delivery partner Amplio Logistics successfully compelled two former delivery workers to individually arbitrate most of their claims that Amazon and Amplio violated California wage law. Although the workers qualify for an exemption from the Federal Arbitration Act’s (FAA) exemption, the Court ruled that California law allows enforcement of the workers’ arbitration agreements. Thus, the workers must arbitrate most of their claims. However, the workers’ claim for unpaid vacation at termination can proceed in court and may be pursued as a class action. The judge rejected the workers’ argument that the arbitration agreements were unconscionable but invalidated the agreement’s class action waiver.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
September 30
the NTEU petitions for reconsideration for the CFPB layoff scheme, an insurance company defeats a FLSA claim, and a construction company violated the NLRA by surveilling its unionized workers.
September 29
Starbucks announces layoffs and branch closures; the EEOC sues Walmart.
September 28
Canadian postal workers go on strike, and the Federal Bureau of Prisons cancels a collective bargaining agreement covering over 30,000 workers.
September 26
Trump’s DOL seeks to roll back a rule granting FLSA protections to domestic care workers; the Second Circuit allows a claim of hostile work environment created by DEI trainings to proceed; and a GAO report finds alarming levels of sexual abuse in high school Junior Reserve Officers’ Training Corps programs.
September 25
Fenway workers allege retaliation; fired Washington Post columnist files grievance; Trump administration previews mass firings from government shutdown.
September 24
The Trump administration proposes an overhaul to the H-1B process conditioning entry to the United States on a $100,000 fee; Amazon sues the New York State Public Employment Relations Board over a state law that claims authority over private-sector labor disputes; and Mayor Karen Bass signs an agreement with labor unions that protects Los Angeles city workers from layoffs.