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FRIDAY, MAY 29, 2026 •
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Great News!
THE DIRECTORS THE EDITORIALS
PRESIDENT
Desiree Lizama
Guam Contractors’ Association
IMMEDIATE PAST CHAIRMAN
Joe Roberto East Island Tinting
CHAIRMAN
Matthew Hunter Dylan Mechanical Construction Services
VICE-CHAIRMAN
Kathleen David Pacific Rim Constructors
SECRETARY / TREASURER
Soraya Vongjalorn Vertex Guam
CONTRACTOR DIRECTORS:
Dean Bates Black Construction Corporation
Nadia Holm ECC
John Limtiaco Pacific Unlimited
AJ Perez Hawaiian Rock Products
Randolf Salas Proferre
ASSOCIATE DIRECTORS:
Mark Cruz Mid Pac Far East
Jose Garcia
First Hawaiian Bank
Geraldine Leon Guerrero Adztech Advertising and PR
Camilo Lorenzo Matson Navigation
JOIN ONE OF OUR MANY COMMITTEES!
Guam Contractor’s Association (GCA) in conjunction with Adztech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA.
While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA or Adztech of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, production team, sta , GCA members, GCA Board of Directors and advertisers
For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net.
Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association o ce located at 506 Mariner Ave., Barrigada, Guam 96913
To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671) 647-4840/41 or Email: info@guamcontractors.org www.guamcontractors.org
Postmaster: Send address changes to Guam Contractors’ Association, located at 506 Mariner Ave., Barrigada, Guam 96913
THETEAM
PUBLISHER: Desiree Lizama
PRODUCTION TEAM
LEAD: Geri Leon Guerrero
AD SALES: Alyssa Roces
PRODUCTION: Jason Davis
Alyssa Roces
Christopher “Taco” Rowland
Paradis Fejerang
PHOTOGRAPHY:
Alyssa Roces
Rosielyn Holgado
EDITOR: Adztech
CONTRIBUTING WRITERS: Francine Taitague
Rodney “RJ” Ricarte
Shierly Cáceres, MBA, PMP, CF APMP Terence Tang
Nadia Holm, CIH, CSP, CHST
GCA STAFF: Francine Taitague
Trevor Cruz
Rosielyn Holgado
Peter Finona
COVER: Pacific Rim Constructors wins the ABC National Safety Pinnacle Award Back-to-Back.
By Desiree Lizama President Guam Contractors Association
GCA Members Bring Home Top Honors at ABC National Conference PRESIDENT’S LETTER
Guam Contractors Association members had a strong showing at the Associated Builders and Contractors national conference — the 36th annual Excellence in Construction Awards, held March 19 in Salt Lake City, Utah.
Four GCA members won National Health & Safety Awards across all levels, Pinnacle, Excellence and Merit. Pacific Rim Constructors and Core Tech International won Pinnacle Awards, the highest honor in ABC's National Health & Safety Excellence Awards program. Pacific Federal Management, Inc. earned an Excellence Award in the General Contractors category. Ian Construction Corp took a Merit Award in Heavy and Civil Engineering Contractors.
To qualify, a company must hold Gold, Platinum, or Diamond status in ABC's Safety Training Evaluation Process. From there, judges dig into the numbers — Total Recordable Incident Rates, Days Away, Restricted or Transferred rates — and compare them against industry averages. Then they go deeper, looking at executive leadership involvement, innovative training programs, and company-wide health initiatives.
Pacific Rim Constructors added another honor: Accredited Quality Contractor. The AQC, launched in 1993, is a company-wide accreditation that must be renewed every year. It recognizes firms that demonstrate excellence across five areas: quality, safety, talent management, workforce education, and community involvement. Earning it requires documented proof in all five. Keeping it requires maintaining those standards year after year.
GCA also earned recognition at the conference, receiving the Outstanding Membership Retention Award — given to associations that retain their members at a rate above 90%. It's a reflection of the value our members find in this organization and the strength of this community.
These wins reflect what our members do every day — on job sites across Guam and beyond. Congratulations to all.
For more information, contact the GCA office at (671) 647-4840 or info@guamcontractors.org.
Together, we build Guam.
By Francine Taitague Education Director Guam Contractors Association
The Smartest Hire You'll Ever Make Is the One You Train Yourself APPRENTICESHIP CORNER
The construction industry isn't short on work. It's short on workers who know how to do it your way.
That gap is costing companies time, money, and projects. An in-house apprenticeship program closes it, and it pays you back in the process.
Start with the business case
Properly trained workers make fewer mistakes. That's what happens when someone learns your system, your standards, and your equipment from day one. Fewer errors means better quality and faster timelines.
Safety follows the same logic. Workers who train under your protocols understand your specific job site rules before they ever pick up a tool. That reduces accidents, which can lower your insurance costs and keep projects on schedule.
There's also a workforce angle most companies miss entirely. Younger workers coming into the trades often bring real digital skills. Apprenticeships give you a direct channel to bring that fluency into your crew — and keep pace with how construction technology is actually moving.
What it does for your people
Turnover is expensive. Replacing a single skilled worker can run $15,000 or more once you factor in recruiting, onboarding, and lost productivity while the seat is empty.
Workers who see you investing in their future tend to stay. Construction firms with registered apprenticeship programs consistently report retention rates well above industry averages. That's more stability on your project teams and fewer dollars walking out the door.
There's a longer play, too. The apprentice you bring on today could be your foreman in five years. Your project manager in ten. Identifying promising people early and developing them deliberately is how you build a leadership bench that doesn't disappear when someone retires.
You don't have to figure this out alone
Starting a program sounds complicated. It doesn't have to be.
The Guam Contractors Association handles much of the administrative work — tracking hours and educational progress — while you focus on the hands-on training. Registered apprenticeship programs come with proven frameworks you can adapt, so you're not designing a curriculum from scratch. And the Guam Registered Apprenticeship Program provides tax incentives.
The GCA guides your company through the entire process of establishing a registered apprenticeship program. We'll help you navigate the requirements, structure your training, and maximize the benefits to your business.
Ready to strengthen your company from within? Contact me at (671) 647-4841 or francine.taitague@guamcontractors.org to get started.
Don't Wait — Schedule Your Check-Up, Make the Most of Your TakeCare Benefits
By Rodney “RJ” Ricarte
Your health is your most valuable asset. And the best way to protect it is through consistent, proactive care. As a TakeCare GCA member, you already have the tools to make that happen — now it's time to use them.
Living a balanced lifestyle can be challenging. Work, family, and daily distractions can pull us away from the habits that keep us well. But small steps add up. Here's one of the most important ones you can take right now: schedule your annual check-up.
Don't skip your annual exam
Annual exams are about more than a physical. Routine bloodwork and screenings can catch silent conditions — high blood pressure, diabetes, early-stage cancers — before symptoms ever appear. Regular visits keep your vaccinations current and give your doctor a year-over-year picture of your health: cholesterol, BMI, blood pressure, and more. For members 45 and older, colorectal screenings are an important addition to that list.
Consistent visits also build something harder to measure: a lasting relationship with your medical provider, one grounded in your personal history and goals. That connection matters most when you need care most.
And here's a bonus — completing your annual physical can help you earn TakeCare's wellness incentives.
Earn wellness, disease management, and fitness incentives
TakeCare provides wellness and disease management incentives up to $250 per eligible individual or $500 per eligible family per benefit period. Cash incentives can be earned by completing annual physical, vision, or dental exams, various health screenings, TakeCare's online health check, or achieving healthy outcomes.
TakeCare also offers fitness incentives up to $350 per eligible individual or $700 per eligible family per benefit period. Members have access to discounts at 20 fitness partners in Guam and can self-report at least 30 minutes of approved activity — walking, jogging, swimming, biking, and more — using approved fitness apps.
Go to free health education classes
TakeCare GCA members can access no-cost health education classes covering better nutrition, heart disease prevention, smoking cessation, and diabetes management. TakeCare's T2 diabetes prevention program is the only one in the region fully recognized by the CDC.
For more details, refer to your Member Handbook. Your TakeCare GCA Employee Health Benefit empowers you to take control of your health and receive the assistance you need to live the life you want to live.
Make 2026 the year you and your family live a balanced lifestyle.
Rodney "RJ" Ricarte is the TakeCare account executive for GCA. He can be contacted at (671) 487-7121 or rodney.ricarte@takecareasia.com.
Taking charge of your health starts with one simple step: scheduling your annual check-up. As a TakeCare GCA member, you have access to comprehensive care and wellness programs designed to help you live a healthier, more balanced life. Through FHP Health Center and TakeCare’s trusted network of providers, m embers receive convenient access to preventive care, screenings, and personalized medical guidance that keeps you one step ahead of potential health concerns.
Routine check-ups are more than just a yearly appointment—they’re an opportunity to detect and prevent serious health conditions before th ey start. Annual exams help monitor important
indicators like blood pressure, cholesterol, and B MI while ensuring vaccinations and screenings remain up to date. With the support of FHP’s ex perienced healthcare professionals, members can build lasting relationships with providers who understand their health history and long-term wellness goals.
TakeCare also rewards members for taking proactive steps toward better health. Eligible individuals can earn up to $250 in wellness incentives or $500 per family each benefit period by completing routine exams, health screenings, and wellness activities. Members can also take advantage of fitness incentives of up to $600 per individual or $1,200 per family,
with discounts available through more than 20 fitness partners across Guam and easy activity tracking through approved fitness apps.
Beyond medical care, TakeCare supports healthier lifestyles through no-cost health education programs, including nutrition guidance, heart health education, smoking cessation, and diabetes prevention. In fact, TakeCare’s Type 2 Diabetes Prevention Program is the only CDC-recognized program in the region. With the strength of TakeCare and FHP working together, members have the resources, support, and care they need to make 2026 their healthiest year yet.
CONSTRUCTION HEADLINE
New Workers, New Challenges: Safety Risks and Opportunities with Guam’s H-2B Construction Workforce
By Nadia A. Holm, CIH, CSP, CHST
Guam continues to experience unprecedented growth in the construction industry, and contractors are increasingly relying on the H2B visa program to meet rising labor demands. From major infrastructure projects to local developments, H2B workers have become an essential part of the island’s workforce. While the program helps address critical labor shortages, it also introduces new safety considerations that contractors must proactively manage. The challenge is not simply regulatory compliance - it is ensuring that every worker, regardless of background or experience, can perform safely in highrisk construction environments.
According to the Guam Department of Labor’s Alien Labor Processing and Certification Division (ALPCD), nearly 60% of the island’s construction workforce is composed of H2B workers, with 98% arriving from the Philippines. These workers are often brought to Guam on tight timelines, creating a fastpaced work culture driven by urgency and demand. Although they arrive with strong technical skills, many are unfamiliar with the safety systems, expectations, and regulatory requirements specific to Guam’s construction industry.
Several key safety risks disproportionately affect H2B workers:
• Language barriers can lead to misunderstandings of instructions, improper use of PPE, confusion during task execution, and difficulty responding to emergencies.
• Cultural norms may reinforce a “work through risk” mentality, discourage hazard or injury reporting, and result in inconsistent enforcement of safety protocols.
• Job security concerns and limited awareness of worker protection rights can make workers hesitant to speak up, ask questions, or refuse unsafe tasks.
• Schedule pressures may result in workers being placed on job sites before receiving full orientations, sitespecific training, or hazard awareness.
Guam’s environment adds another layer of complexity. Heat stress, dehydration, PPE discomfort, and fatigue from long shifts in high humidity can significantly
impact performance and decisionmaking. Remote or confined work environments with limited oversight further increase the likelihood of incidents, particularly among newer workers.
Fortunately, many forwardthinking contractors are adapting their safety programs to better support H2B crews. Effective strategies include:
• Multilingual training materials, signage, and toolbox talks to improve comprehension and retention.
• Visual learning tools - diagrams, photos, demonstrations - to bridge language gaps.
• Mentorship programs pairing new workers with experienced, bilingual supervisors during their first weeks on site.
• Adequate onboarding time to ensure workers fully understand site conditions, safety expectations, and emergency procedures before performing highrisk tasks.
• Knowledgeverification mechanisms, such as demonstrations, quizzes, or peer assessments, to confirm understanding.
• A strong speakup culture, supported by incentives for hazard reporting and clear protections against retaliation.
The growing presence of H2B workers in Guam’s construction industry is not just a challenge - it is an opportunity. With intentional training, clear communication, and strong leadership, contractors can build diverse, capable teams that operate safely and efficiently. Companies that invest in inclusive safety practices are not only reducing risk; they are strengthening their workforce and improving project outcomes.
As Guam continues to develop, one thing is clear: the future of construction safety will depend on how effectively the industry supports, trains, and integrates its newest workers.
Nadia Holm CIH, CSP, CHST is the President of Oceania Safety and Environmental, providing comprehensive industrial hygiene, safety, environmental, and regulatory compliance solutions tailored to the unique needs of Guam and the broader Pacific region.
THANK YOU To All Our Sponsors
OTHER SPONSORS INCLUDE:
Carpentry Project Materials & PPE
GCA C.O.R.E. Sponsors
Heavy Equipment
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Hawthorne Cat
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Facility, Instructors, Volunteers
America’s Best Electricmart (ABE)
Barret Plumbing
CTSI Logistics
Davon Thompson GCA
T-Shirts
The PITT Pizza
Water, Pops, Juices, Snacks
BME & Sons
Banzuela Family
CTSI Logistics
America’s Best Electricmart (ABE)
PDC Wholesale
Sweet PopCorn
Pacific Rim Give Aways EXP U.S. Services
Participant Bags
Adztech & Public Relations, Inc.
GCA Trades Academy Sta & Instructors
Granite Construction Company Guam
Hawaiian Rock Products
Hensel Phelps
Justice Rayne Austin
Latte Stone Defense
MILSPRAY
Pacific Federal Management
Parents/Educators
RAP
SLSCO Ltd.
Smithbridge Guam
UXO Academy of Bomb and Bullets
WHEN EVERY WORKER IS A HERO:
How Pacific Rim Constructors Became a Two-Time ABC National Safety Pinnacle Award Winner
By: Shierly Cáceres
History-Making. Pacific Rim Constructors Is the First Contractor on Guam — and One of the Rarest in the Nation — to Win the Associated Builders and
Some records are worth stopping to appreciate. Nineteen. That's how many of ABC's 23,000+ member contractors nationwide earned the National Health and Safety Pinnacle Award in 2026 — the organization's highest safety honor. Pacific Rim Constructors was one of them. Again. On March 19, 2026, at the 36th Annual Excellence in Construction® Awards in Salt Lake City, Pacific Rim became the first contractor in Guam's history to win it twice — back to back.
Target Zero Safety Hero: A Culture, Not a Slogan
contractor on site without a single OSHA citation.
“At Paci c Rim, safety is not a program we follow — it is a commitment we live every day. From our leadership team to every craft professional in the eld, we take ownership of each other’s well-being.”
Keith Stewart, President & CEO, Paci c Rim Constructors
Everything at Pacific Rim flows from one non-negotiable belief: every incident is preventable. That belief powers Target Zero Safety Hero — a company-wide program binding every employee, subcontractor, and supervisor to the same uncompromising safety standard. The results speak for themselves: Pacific Rim has maintained a zero DART rate for five consecutive years. The U.S. construction industry’s average DART rate sits at approximately 1.8, per Bureau of Labor Statistics data. ABC’s 2026 National Board Chair Thomas “Murph” Murphy noted that Pacific Rim operates nearly seven times safer than the national average. At Camp Blaz — the new U.S. military base under development in Guam —
Built for Guam: Custom Safety Technology That Actually Fits
Off-the-shelf safety software was never going to cut it for a workforce where nearly 90% of craft workers are H-2B visa holders from the Philippines — navigating language barriers and unfamiliar U.S. safety standards. Pacific Rim didn't adapt to existing tools. It built its own, designed specifically around its operations and culture.
The custom Good Catch App lets any worker — regardless of title or language — report a near-miss or hazard directly from their phone, earning safety points redeemable for gear, paid time off, and destination flights. The Intervention App captures real-time safety behaviors through checklists built around
and site conditions — with accountability baked in at every level. The CEO, executives, and senior managers are each required to submit a minimum number of interventions every month, ensuring that safety observation isn't delegated down — it's modeled from the top. The Safety Analytics Dashboard ties it all together, giving leadership a real-time view of safety performance across every job site, with monthly audits returned to teams with direct feedback and required action items. The result is a safety system that doesn't just support Pacific Rim's culture — it reflects it.
Safety Starts Before the Plane Lands
One of Pacific Rim’s most innovative moves this past year didn’t happen on a job site in Guam — it happened in the Philippines. The company sent its safety manager, fluent in the workers’ native language, to conduct in-person safety training before deployment. Passing became a prerequisite for being selected for the project. The result: a 100% increase in worker participation and engagement. Workers arrived in Guam not just ready to work — they arrived ready to work safely. On site, that foundation continued through multilingual toolbox talks, daily huddles, and the custom Plan, Recognize, Control (PRC) Board — a visual tool that gives every worker a shared framework for identifying hazards and owning their safety responsibilities before work begins each day.
Every Month, a Hero Steps Forward
The Target Zero Safety Hero recognition program is where the culture becomes personal. Each week, the top five craftworkers by safety points are publicly celebrated at the site meeting. Each month, the highest performer is named Safety Hero — recognized in front of peers and rewarded through the Safety Store. At year’s end, Safety Heroes of the Year for both craft and superintendent categories are honored at an annual banquet. For a workforce far from home, being seen as someone who protected their crew and spoke up about a hazard is a source of real, lasting pride. Monthly zero-accident luncheons, weekly micro-trainings, and Lunch & Learn wellness events reinforce the message: at Pacific Rim, choosing safety is always the easiest and most rewarding choice.
Guam’s Standard-Bearer — and a Model for the Nation
Founded in 2012, Pacific Rim’s portfolio includes more than $450 million in active and completed projects for federal, local, and private clients across Guam and the Commonwealth of the Northern Mariana Islands. They are the first local contractor in Guam's history to win the ABC National Safety Pinnacle Award — and the first to win it back to back.
The award itself is not easily earned. A contractor must first win a National Health and Safety Excel
lence Award the previous year before they can even be considered for the Pinnacle — and to reach that stage, they must have achieved Diamond, Platinum, or Gold status in ABC's STEP Health and Safety Management System. From there, the selection process includes self-evaluation scores, lost workday case rates, total recordable incident rates, leading indicator use, program innovations, and interviews conducted by ABC's National Health and Safety Committee. Of the 23,000+ member contractors who go through that process, fewer than 19 earn the Pinnacle in any given year. Winning it consecutively places Pacific Rim in an even smaller category — one shared by only a handful of firms in the entire country.
What makes this story bigger than a trophy is what it proves. Pacific Rim is a small business operating under conditions most U.S. contractors will never face: a nearly entirely foreign-born workforce, geographic isolation, multilingual job sites, and high-stakes federal projects with zero margin for error. And they've built one of the safest construction organizations in the country.
Every Safety Hero title earned. Every hazard caught before it became an incident. Every supervisor who stopped work because something didn't feel right. Those are the moments that built a back-to-back national champion.
If Target Zero is achievable here, it is achievable anywhere.
PHOTO HIGHLIGHTS
GCA Membership Luncheon
March 18th, 2026
Westin Resort Guam
GCA Committees Meetings
PHOTO HIGHLIGHTS
Meet the Generals
March 20th, 2026 GCA Trades Facility
Meet the Generals Mixer
March 20th, 2026
GCA Trades Facility
TECH BYTES
Scoping Your CMMC Environment
By Terence Tang
Scoping your environment starts with one question: where does DoD-related information live in your business, and who can touch it?
Once you know that, CMMC becomes far more manageable.
CMMC applies only to the people, systems, and locations that handle DoD work - not every device or file in your company. Drawing that line clearly means you avoid securing everything when you only need to secure the parts that touch DoD data, keeping your compliance scope narrow and your assessment straightforward. A clear boundary also gives assessors a defined scope to evaluate rather than a sprawling IT environment.
Start by identifying where DoD-related documents and messages actually live. For a construction firm, that usually means bids, proposals, contracts, drawings, specifications, schedules, RFIs, change orders, meeting minutes, and the emails tied to those projects. Those files might sit on an office file server, in a cloud platform like SharePoint or Google Drive, inside a project management tool, or on laptops and tablets used by field staff. Anywhere that DoD project information is stored, viewed, or sent is part of your CMMC scope.
Next, think about who touches that information. Roles matter more than names. Estimators preparing bids, project managers running jobs, superintendents reviewing drawings, accounting staff billing the project, and executives reviewing reports are all likely in scope. Some subcontractors or vendors who receive drawings or project data are also in scope. On the other hand, if a division of your business never touches DoD work -
such as a residential team focused entirely on local projects - it falls outside scope entirely, which means fewer people and systems subject to CMMC requirements.
Once you know what systems and roles are involved, imagine drawing a fence around them. Inside that fence are the servers, cloud folders, applications, devices, and networks used to access DoD information. Everything inside must meet CMMC requirements. Everything outside can operate as normal. In many cases you do not need to redesign your whole company. Creating separate folders or project sites for DoD work and limiting access to only those who truly need it can keep your scope tight and manageable.
Finally, write it down. Even a one-page summary describing your DoD work, the systems where that information lives, the roles that can access it, and the parts of your company that are out of scope is a strong foundation. That document drives everything that follows: your policies, security controls, training, and eventual assessment.
Terence Tang is vice president of client strategy at Intech Hawaii and a cybersecurity and compliance leader with more than 25 years of experience in the managed services indus try. A Certified CMMC Professional (CCP) and CISSP, he advises defense contractors across Hawaii, Guam, and the U.S. mainland on CMMC, DFARS, and cybersecurity compliance. Have a question? Email Terence at ttang@intech-hawaii.com.
Ensure your projects meet the highest standards with the newly updated, official Excel-based tool designed specifically for Guam’s unique environment.
Developed by the U.S. Army Corps of Engineers (USACE) in collaboration with the Bureau of Statistics and Plans, Guam Coastal Management Program, Guam EPA, and the Department of Public Works, this tool simplifies complex drainage requirements into one reliable interface.
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Full Calculator Suite: Runoff Curve Number (RCN), Time of Concentration, and TR-55 Peak Runoff.
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NE WS LINE
DOL Issues Guidance Improving Flexibility in Registered Apprenticeship Programs
On March 9, the U.S. Department of Labor’s Employment and Training Administration announced four new guidance documents on the implementation of registered apprenticeship programs. The stated goal of the guidance is to improve flexibility and reduce burdens for program sponsors, promote clarity and consistency in the registration process across states, elevate quality standards and increase transparency. The guidance documents are:
• Circular 2026-01—Provides updated guidelines for registered apprenticeship program design, improving flexibility for program design
◦ Rescinds the 12-month on-the-job learning minimum for competency-based programs
◦ Rescinds the 25% limit on adjustment of hybrid or time-based programs
◦ Rescinds the maximum credit limitation for prior experience at 50% of training
◦ Clarifies that 144 hours of related instruction per year of apprenticeship is recommended but not required
◦ Rescinds the requirement for certificate of completion that the apprentice had worked for the program sponsor as a registered apprentice in the occupation for at least six months/1,000 hours
• Circular 2026-02—Clarifies the roles of state apprenticeship agencies and apprenticeship councils, seeking to prevent excessive delegation to SACs
◦ Prohibits SACs from evaluating/registering apprenticeship standards or programs, making apprenticeability decisions or deregistering programs
• Circular 2026-03—Sets out a standardized completion rate calculation and announces a new performance data portal
• Bulletin 2026-35—States the DOL’s commitment to timely registration determinations
◦ The DOL commits to making determination within 30 days of submission
◦ Announces new “shot clock” website to share
number of programs registered and average time to register
“ABC strongly supports the DOL’s bold new approach to addressing longstanding concerns with registered apprenticeship programs by improving flexibility for program sponsors and employers, as well as addressing state policies that impair worker access to these high-quality training programs," said ABC Vice President of Government Affairs Kristen Swearingen in a statement. "These policies align with our consistent advocacy for simplification of unnecessarily burdensome apprenticeship regulations, and ABC thanks the DOL for taking steps to implement our recommendations."
Overall, the guidance represents a welcome new approach to expanding RAPs by easing access for employers and sponsors and emphasizing the need for flexibility. RAPs are a critical component of ABC’s all-of-the-above approach to workforce development, with ABC chapters offering over 450 RAPs across the country. ABC looks forward to continuing to partner with the DOL on efforts to address the construction industry’s ongoing workforce shortage.
DOL will also be hosting a webinar discussing the guidance on March 27. Register for the webinar on WorkforceGPS.
ABC Applauds DOL’s Proposal to Rescind Confusing Biden-Era Independent Contractor Rule
On Feb. 26, the U.S. Department of Labor announced a proposed rule that will rescind and replace the ABC-opposed 2024 Employee or Independent Contractor Classification Under the Fair Labor Standards Act final rule.
ABC strongly supports the DOL’s proposed rule to rescind the Biden-era 2024 independent contractor final rule and replace it with a commonsense proposal similar to the ABC-supported 2021 final rule. The 2024 final rule creates an ambiguous and difficult-to-interpret standard for determining independent contractor status. Under the rule’s multifactor test, employers are forced to guess which factors should be given the greatest weight in making the determination.
Instead of promoting much-needed economic growth and protecting legitimate independent contractors, the 2024 final rule results in more confusion and expensive, time-consuming, unnecessary and often frivolous litigation, as both employers and workers will not understand who qualifies as an independent contractor.
In the DOL release, the agency highlighted that the proposed rule would:
• Apply an “economic reality” test to determine whether a worker is in business for himself or herself as an independent contractor or is an employee economically dependent on an employer for work.
• Identify and explain two “core factors” to help determine if a worker is economically dependent on an employer for work or in business for him- or herself:
◦ The nature and degree of control over the work.
◦ The worker’s opportunity for profit or loss based on initiative and/or investment.
• Identify other factors to help determine a worker’s status as an employee or independent contractor, including the amount of skill required for the work, degree of permanence of the working relationship, and whether the work is part of an integrated unit of production.
• Advise that the actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.
• Provide eight fact-specific examples applying the factors to real-life circumstances
“ABC is pleased to see the DOL is proposing to simplify and clarify the factors for determining when a worker is an independent contractor versus an employee under
the Fair Labor Standards Act,” said Kristen Swearingen, ABC vice president of government affairs, in a news release. “ABC looks forward to providing comments to the DOL on the proposed rule.”
To learn more, read ABC general counsel Littler’s analysis.
On May 1, 2025, the DOL announced that it would pause enforcement of the 2024 final rule in current enforcement matters while the agency reviewed this regulation.
ABC, its Southeast Texas chapter, the Coalition for Workforce Innovation and five other organizations are challenging the 2024 final rule in federal court, which is currently pending.
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Kin and Jayne Flores with Tom Roberto
East Hagåtña 477-TINT (8468) / 472-TINT eastislandtinting@guam.net
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