In today’s news and commentary, a construction contractor challenges a federal PLA requirement, the government asks to postpone a court hearing on collective bargaining rights for two federal unions, and the IRS announces relief from reporting requirements related to the no tax on tips policy.

An Alaska-based plumbing and heating contractor is seeking an injunction against a 2023 rule requiring project labor agreements on federal construction projects worth more than $35 million. The contractor’s complaint argues the rule exceeds the president’s “limited authority” under the federal Procurement Act and clashes with the law’s requirement to ensure federal contracting is “economical and efficient.” Law360 notes mixed results in prior challenges to the rule. Per the article, a suit brought in a Florida district court failed earlier this year, though the plaintiffs are appealing to the Eleventh Circuit. In another case, plaintiffs convinced the Court of Federal Claims that some applications of the rule were illegal, but did not get the rule itself overturned.

Law360 notes that the Department of Justice has moved to delay an upcoming hearing on a motion brought by two federal employee unions that lost collective bargaining rights under an August executive order. Citing the government shutdown, the DOJ last week asked the court to vacate a November 14^th oral argument date. The argument would address a motion for a preliminary injunction brought by unions for the National Weather Service and Patent Office. The unions argue that the president can only exclude agencies with a primary function of intelligence, counterintelligence, or national security from collective bargaining. Their motion argues they are likely to succeed on the merits because they can rebut the “presumption of regularity” that governs applications of the national security exemption.

Bloomberg reports that in guidance on Wednesday the IRS said it would offer relief for employers that fail to meet reporting requirements related to the “no tax on tips” policy. Per the article, the One Big Beautiful Bill Act creates new reporting requirements for employers for amounts designated as cash tips. The guidance states that tax year 2025 “will be regarded as a transition period for purposes of IRS enforcement” of the new reporting requirements.