To learn more about the potential next Secretary of the U.S. Department of Labor (DOL), including why her nomination has stirred so much criticism and praise simultaneously, SNIPS NEWS spoke to three industry experts about a wide array of regulatory topics which she’ll likely have an impact on.

Outspoken Advocate of Three Influential Acts

First, Chavez-DeRemer is renowned for supporting the Inflation Reduction Act (IRA), the Infrastructure Investment and Jobs Act, and the CHIPS and Science Act's investments in her district, as well as the state of Oregon. Each is associated with Project Labor Agreements (PLAs), registered apprenticeship and prevailing wages.

After all, Stanley E. Kolbe, Jr., SMACNA’s executive director of government and political affairs, believes each act will have a positive influence on economic growth, jobs, private investment and skilled labor supply expansion within the HVAC industry as a whole. In addition, SMACNA has strongly supported Chavez-DeRemer’s past comments about all three acts, as they were “necessary for the construction economy.”

“Concerning the use of PLAs, we also supported President Biden’s Executive Order 14063, requiring PLAs on federal construction projects over $35 million,” Kolbe, Jr. said.

In particular, Kolbe, Jr. thinks Chavez-DeRemer will have a positive impact on the IRA. First, due to the IRA’s influence on job creation, Kolbe, Jr. believes Chavez-DeRemer will be asked to comment, testify and collaborate on the Trump Administration’s policy stance, especially as Congress seeks direction on tax reforms and tax extension questions, including those in relation to the Tax Cuts and Jobs Act.

“As a result of its phenomenal private sector investment, as a near historic spike in jobs flow was generated, which few anticipated, the IRA has become a policy tool with fast growing popularity on the Republican side too,” he said. “Recent public statements by dozens of GOP House members have shown that they’re seeking to save the IRA after seeing hundreds of thousands of jobs created in ‘red’ districts.”

BIPARTISAN: Stanley E. Kolbe, Jr. Executive director of government and political affairs SMACNA, says Republicans like Chavez-DeRemer are trying to save the IRA after seeing hundreds of thousands of jobs created in red districts. (Courtesy of General Sheet Metal)

Focusing on Fair Labor

Although the Independent Contractor Rule is primarily an Internal Revenue Service matter, the DOL benefits from the proper enforcement of labor laws and employment standards. Of equal importance, the DOL also has a cooperative role on reviewing contractors’ conduct in any misclassification area, according to Carol Duncan, CEO of Clackamas, Oregon’s General Sheet Metal.

Therefore, Duncan stresses that Chavez-DeRemer’s enforcement of the Independent Contractor Rule for all contractors will not only be fair, but necessary, too. By not enforcing it, legitimate, law-abiding contractors will be negatively impacted, as they strive to conduct their tax and benefit assessments fairly.

“The enforcement of the Independent Contractor Rule will help taxpayers and the treasury, while fair bidding for projects at every level — local, state and federal, as well as private and public markets — will also be boosted,” Duncan stated.

Moreover, although Chavez-DeRemer won’t have much influence on the Fair Labor Standards Act’s overtime rule, as she’ll simply carry out the Trump Administration’s policies, Duncan believes overtime may increase for many HVAC employees in the coming years.

“During President Trump’s first term, he implemented an increase in the salary threshold for the ‘white collar’ overtime pay exemptions, and the new Trump Administration may seek an additional increase,” she stressed. “The regulatory process for this (with Chevron judicial deference now in place) will not be a quick one to watch or wait on.”

Bradford P. Campbell, a partner at Faegre Drinker Biddle & Reath LLP, agrees, adding that the overtime rule is “currently mired in litigation, which means Chavez-DeRemer does not have a free hand to act immediately.” Furthermore, he emphasizes that — much like some other President Biden era rules that aren’t presently in court — the overtime rule’s future depends on how its litigation proceeds, at least partially.

“We will know more when we see the broader deregulatory orders that President-elect Trump issues on January 20, 2025,” he added.

SUPPORTER: Rep. Chavez-DeRemer’s nomination to become head of the Department of Labor is supported by SMACNA and others. (Courtesy of the U.S. House of Representatives)

While focusing on right-to-work issues, such as the PRO Act, which Chavez-DeRemer co-sponsored, Duncan and Campbell don’t perceive the act being passed in Congress, regardless of how much she advocates for it. However, labor law changes may very well be high priority issues for the White House and the Justice Department.

“Chavez-DeRemer’s balanced view on the state right-to-work issues may be a factor in discussions though,” Duncan said. “That is a valued role at the cabinet table.”

Appealing to Democrats and Republicans

With regard to Chavez-DeRemer’s appointment, one could argue it’s an overture to make a bigger tent from both sides of the political aisle, despite the fact that she’s a Republican. The primary reason? Along with supporting acts that were mainly only championed by Democrats, she also voted for the Congressional Review Act resolution against the DOL’s rule on prudence and loyalty in seeking investments — a rule that’s been advocated by Democrats.

Upon reflecting on her career, Duncan isn’t overly surprised that Chavez-DeRemer often works across the aisle, as she has “an open-door policy.”

“This open-door policy to representatives and individuals, who are impacted by her decisions, is a big plus for our sector of the economy that she’ll oversee,” Duncan emphasized. “Lori knows the long list of often complex labor management issues and has the balanced view that both sides will continue to respect.”

Although Campbell agrees, he believes the past can’t completely predict the future either.

“Her votes have staked out some unusual positions for a Republican, so her nomination is definitely an overture to unions who supported President Trump,” he said. “But her short tenure in Congress leaves us with a lot of unanswered questions, regarding which issues she’ll actively pursue as a regulator.”

When it comes to the aforementioned Chevron deference, Duncan is hopeful that it will ultimately “result in rules” that “meet the letter of the laws, as passed,” much like most have strived for in the past. Due to Chavez-DeRemer’s appointment, Duncan thinks the DOL can ensure this transpires as smoothly as possible, via her leadership. Such smooth implementation will be especially critical as the Trump Administration executes various regulatory and deregulatory actions.

“I think we will see many challenges to these actions,” Campbell stated. “The best approach for the Trump regulators is to dot their Is and cross their Ts in making policies so they can stand up to judicial scrutiny.”

Progress for Apprenticeships, Childcare Tax Credits and Health Care Kolbe, Jr. is also optimistic that Chavez-DeRemer will continue to be a champion for the Davis-Bacon Act, while focusing particularly on its role in increasing registered apprenticeship investments. In fact, he believes she will defend the Act’s rules that are now finalized.

Aside from defending its rules, Kolbe, Jr. thinks Chavez-DeRemer will seek to support all registered apprenticeship initiatives, enhance surveying frequency, regarding prevailing wage rules, and simplify and improve the prevailing wage rules that have been created so far.

“We expect the Davis-Bacon rules, as finalized, will be enforced, as both sides have championed supporting the payment of prevailing wages. Many changes will be implemented by the Administration too though,” he accentuated.

Just as importantly, Duncan believes progress will be made, concerning tax credits for employers that provide childcare, as the Trump Administration previously discussed this issue. Additionally, since Chavez-DeRemer created the Health DATA Act (H.R. 4527) to amend the Employee Retirement Income Security Act of 1974, Duncan and Campbell predict she’ll have a noticeable impact on health care.

“The bill (which ensures plan fiduciaries may access de-identified information, relating to health claims) passed by a 38-1 margin, so maybe it will have favorable consideration with her leading the DOL,” Duncan said.

“Given her background as a small business owner providing medical services, I think health benefits may be an area where she’ll have a bigger personal interest, understanding and impact than many appreciate at present,” Campbell added.

The bottom line? According to Duncan, Chavez-DeRemer has bipartisan respect, deep knowledge of labor issues and longstanding relationships with construction firms, leading to a potentially bright future for HVAC professionals.

“She will likely be a fair, reasonable, open and fully informed Secretary of Labor that will represent millions of workers and businesses — not only in HVAC, but all industries under the DOL’s purview,” Duncan concluded.