After the Gulf Coast Hurricanes

In the 2005 Special Issue of Employment Law Strategist, we summarized key issues affecting employers following the Hurricane Katrina disaster, including the federal government’s legislative and regulatory responses to the catastrophe. The following is an updated summary of relevant legislative and regulatory actions.

Bush Administration Reinstates Davis-Bacon

On Sept. 8, 2005, President Bush suspended the Davis-Bacon Act prevailing wage requirements for reconstruction projects in the hurricane-battered Gulf Coast, declaring the situation a national emergency. The Bush Administration reinstated these prevailing wage requirements on Nov. 8. The Davis-Bacon Act requires federal construction contractors to pay locally prevailing wages, as determined by the Department of Labor, on all projects in excess of $2000. The law will apply ton all projects in the area that are subject to bid or awarded as of Nov. 8, 2005.

Department of Homeland Security Eases Work Rules for Certain Students

The Department of Homeland Security temporarily eased the work rules for some 5100 non-immigrant students who are enrolled in academic institutions located in areas affected by Hurricane Katrina. Effective Nov. 25, 2005, students were granted short-term employment authorizations, provided they satisfied a minimum coarse load requirement of six semester/quarter hours for undergraduates and three semester/quarter hours for graduate students. This change lifted the previous limitation of 20 hours per week of on-campus employment and 20 hours per week of off-campus employment. These relaxed regulations continued until Feb. 1, and were designed to provide relief to students so they could obtain short-term employment authorization and consequently reduce their course loads.

Enforcement Resumes on Affirmative Action Requirements for Hurricane Katrina Recovery

Effective Dec. 9, 2005, the Army Corp of Engineers resumed enforcing all affirmative action requirements for federal contractors on Hurricane Katrina-related projects, including the requirement that contractors develop written affirmative plans and file requisite reports. The reinstitution of affirmative action requirements also applies to non-construction contracts in the designated areas, including debris removal work. The exemption was granted to provide private companies that were not performing work for the federal government at that time with easier access to federal contracts during the Hurricane Katrina crisis.

The Department of Labor and the IRS Extend Deadlines on Health Plan Coverage

The Department of Labor (DOL) and the Internal Revenue Service (IRS) are further extending the time to make decisions regarding health coverage for workers and employers affected by Hurricane Katrina. The time is extended from Jan. 3, 2006 until Feb. 28, 2006 to help participants, beneficiaries, qualified beneficiaries, and claimants directly affected by Hurricane Katrina who might encounter problems in exercising their health coverage portability or continuation coverage rights, or in the filing or perfecting of a benefit claim. With respect to any plan participant, beneficiary, qualified beneficiary, or claimant “directly affected” by Hurricane Katrina, benefit plans and health insurance issuers must disregard the period from Aug. 29, 2005 through Feb. 28, 2006 when determining any of the following time periods and dates: