Developers and general contractors, beware: The National Labor Relations Board (NLRB) has signaled it will take a closer look at work-preservation clauses. Work-preservation clauses typically limit subcontracting on construction projects to those companies that have signed on to a project labor agreement (PLA).
In an important new case, the NLRB said there was insufficient evidence that the clause was intended mainly to advance labor harmony at project sites.
The case—Glens Falls Building & Construction Trades Council, 350 NLRB No. 42—does not mean that work-preservation agreements in all PLAs are illegal. When the agreement to limit subcontracting to signatory contractors arises in the context of a classic collective bargaining relationship between the employer of the labor force and the unions representing the labor force, this type of work-preservation clause will survive scrutiny under an express exception in Sec...(register to read more)
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