AGC Files Lawsuit to Challenge Biden PLA Requirement on Federal Projects

On January 10, 2024, AGC of America and Louisiana AGC filed a lawsuit in the U.S. District Court for the Western District of Louisiana challenging President Biden’s authority to require federal construction contracts, in excess of $35 million, to have a project labor agreement.

This action is consistent with AGC’s longstanding policy that AGC of America neither supports nor opposes contractors’ voluntary use of PLAs but strongly opposes any government mandate for or prohibition of contractors’ use of PLAs.

In the complaint, AGC argues that the President lacks the authority to issue this mandate. Further, AGC claims that even if he had the authority, the blanket requirement violates federal procurement policies requiring that changes to procurement rules must promote “economies and efficiencies” in government contracting.

AGC also makes the case that government mandated PLA’s undermine local bargaining conditions and require contractors to employ trades that they ordinarily do not bargain with or wish to have a bargaining relationship.

Additional Information

• Read the AGC of America press release.
• Get information and register for a free webinar regarding this issue, to be held Jan. 18.
• Read the PLA final rule memo.
• Read the complaint AGC filed in federal court.