IN THE NEWS

Offsite Construction

Offsite construction – manufacturing, planning, design, fabrication, and assembly of building elements that are transported to a final construction site – is gaining ground, literally. All building types, including residential, educational, health care, and commercial, can benefit by employing this construction method which includes distinct advantages over conventional construction. While all construction methods and delivery systems are heavily impacted by current economic conditions, some are better positioned to weather economic fluctuations. Check out this two-part series from Tamarack Grove Engineering titled “Offsite vs. Onsite Construction — Economy, Impacts & Future”. The articles present a current outlook on this growing trend and provide key perspectives from industry pros in the engineering, manufacturing, and building systems industries. https://www. sips.org/documents/TGE_Offsite-Construction-Part-I. pdf

Looming Federal Ban on Non-Compete Agreements

Last quarter, the Federal Trade Commission proposed banning employers from imposing noncompete agreements on their employees. In addition to barring these agreements in the employer-employee contract, Subchapter J—Rules Concerning Unfair Methods of Competition also examines whether similar contractual terms such as a ‘non-disclosure agreement’ may be a cloaked non-compete clause and be subject to the ban. Employees who own at least 25% of a firm that is being acquired would be exempt, and virtually all existing non-compete agreements would be rescinded immediately. The rule, if approved, is expected to raise median salaries, spark innovation, give a boost to start-up firms, and increase career opportunities for American workers. For more information visit: https://www.ftc.gov/newsevents/news/press-releases/2023/01/ftc-proposesrule-ban-noncompete-clauses-which-hurt-workersharm-competition

The WORK Act Empowers ESOPs

The Worker Ownership, Readiness, and Knowledge (WORK) Act, expanding employee ownership to the American workforce, has passed the Senate. This first step to ensuring workers have the tools they need to have a seat, and a voice, at the table is anticipated to build individual wealth and a more secure retirement; spur higher wages and better benefits; increase local jobs; and decrease gender and racial wealth disparities. The benefits of adopting an employer-ownership model are expected to boost employee morale and enhance creativity and productivity.

Employee-owned firms have also proved less likely to outsource American jobs and recognize higher shareholder returns and profits overall. The WORK Act creates a $50 million grant to provide education, training, and technical support via nationwide employee ownership centers that will provide key foundational services to help workers establish their own ESOPs (employee stock ownership plans) or other eligible worker-owned cooperatives. Read more about this lucrative program that just may change the future of business ownership: https://www.sanders.senate. gov/press-releases/news-sanders-longstanding-legislation-to-help-workers-expand-employee-ownershippasses-the-senate-in-2023-omnibus/

Pregnant Workers Fairness Act

The new Pregnant Workers Fairness Act (PWFA) requires certain employers to provide “reasonable accommodations” to a worker’s known limitations related to pregnancy, childbirth, or related medical conditions unless the accommodation will cause the employer an “undue hardship” – defined as something that causes significant difficulty or expense to the employer. Affected employers include private and public sector employers with at least 15 employees, Congress, federal agencies, employment agencies, and labor organizations.

It’s important to note that the PWFA applies only to accommodations and does not replace existing EEOC laws and other federal, state, or local protections. Reasonable accommodations are changes to the work environment or the way things are usually done at work such as parking, flexible hours, break times, and maternity leave. The PWFA becomes effective on June 27, 2023. To learn more visit https://www.eeoc. gov/wysk/what-you-should-know-about-pregnantworkers-fairness-act.

Research and Development Tax Credit

The Research and Development Tax Credit results in an immediate benefit to a company because it can reduce past, current, and future years’ federal tax liability, thereby creating an immediate source of cash. The credit provides a dollar-for-dollar offset against taxes owed or paid, which differs from a deduction.

The credit can offset Alternative Minimum Tax and payroll withholding in certain circumstances. The federal credit averages about 6.5% of combined qualified Research and Development labor, contractor labor, and supplies. To learn more visit: https:// corporatetaxadvisors.com/services/research-anddevelopment-tax-credit/