As a tumultuous 2020 comes to an end and an uncertain 2021 begins, many in the construction industry wonder what a Biden presidency will mean for business.
Few will argue President Trump's strategy to boost the economy through rolling back regulations has had a positive effect, if not on the environment, certainly when it comes to business productivity.
Will a Biden administration undo most or all of the Trump administration executive orders that have benefited businesses?
Trump issued an executive order waiving environmental regulations. He sped up infrastructure projects by slamming the door on restrictions surrounding protecting endangered species and clean water agendas.
Officials say if and when Biden is sworn-in, he will initiate a federal regulatory freeze.
Biden will also likely review a Department of Labor rule that revises the guidelines for determining if a worker is an employee or independent contractor.
Under President Obama, the DOL proposed raising the minimum salary to $47,476 from $23,600. This meant that employers would have to pay workers the new, higher salary in order to classify them as exempt from overtime wages. Contractors argue the new limit would create a burden for employers and didn’t take into consideration that compensation differs from state-to-state.
The threshold was lowered to $35,568 during the Trump administration however, Biden may make another run at the higher threshold.
The coal industry is the sector most on edge. Trump was a true advocate for coal and gas while Biden's stance has been clear, despite some lip service on the campaign trail. Biden is against fracking and will begin efforts to faze out fracking in favor of clean energy.
The DOL act, also known as the blacklisting rule, would have required contractors bidding on federal construction projects over $500,000 to submit their history of labor compliance for review to the DOL before a potential award.
This was repealed by the Trump administration and using the Congressional Review Act prevents Biden from adopting a similar rule but officials say a Biden administration could try to pass a “watered-down version.”
Biden will have to walk a fine line between the interests of both unions and the construction companies they represent. Maintaining some of Trump's rolled back regulations may be in order to do this.
Though Biden will certainly pass executive orders, political analysts say Biden's decisions on who will take charge of various agencies will have the most effect on President Trump's four years of deregulation.
The most notable sector of a Biden administration's efforts will be transportation infrastructure.
Many will argue it won't be Biden calling the shots, but instead the powers of his base that will influence his decisions. How far left Biden will go could determine how much of the above will take place.
The environment was low on President Trump's priority list, which for many was great for the bottomline. If a Biden administration swings back into the corner of the environment, the country may see a loss of positive economical gains in certain portions of the construction sector, while infusing a boost in others.
