Workers' Compensation: "Made in America" Will Impact Workers' Compensation Nationally

Today, President Biden signed the Executive order, Made in America.” The effort to move manufacturing jobs back to the United States will have a major impact going forward for the entire workers' compensation system. This initiative will expand the workforce and expand the potential of a major increase in workers' compensation benefits through increased wages/rates and premiums paid for coverage and all related cottage industries involved in the social insurance program.

“While many American businesses are on the brink of having to close their doors because of the crises that our country faces, President Biden, signed the Executive Order to support manufacturers, businesses, and workers to ensure that our future is made in all of America by all of America’s workers.”

The Executive Order, “Made-in-America” refers to domestic preferences related to federal procurement, federal grants, and other forms of federal assistance. Buy American and Buy America refers to the specific statutes that go by those names.

This Order directs a process for updating domestic preferences to fit the current realities of the American economy.

The Executive Order:

Directs agencies to close current loopholes in how domestic content is measured and increase domestic content requirements. Existing Buy American rules establish a domestic content threshold – the amount of a product that must be made in the U.S. for a purchase to qualify under Buy American law. This Executive Order directs an increase in both the threshold and the price preferences for domestic goods – the difference in price over which government can buy a product from a non-US supplier. It also updates how the government decides if a product was sufficiently made in America, building a stronger foundation for the enforcement of Buy American laws.
Appoints a new senior leader in the Executive Office of the President in charge of the government’s Made-in-America policy approach. A bold approach to Made-in-America requires leadership and accountability. The new Director of Made-in-America at the Office of Management and Budget (OMB) will oversee the implementation of this Executive Order, make sure the President’s new rules are followed, work with key stakeholders, and carry through the President’s vision in conjunction with their executive agency partners.
Increases oversight of potential waivers to domestic preference laws. This order creates a central review of agency waivers of Buy American requirements, fulfilling the President’s commitment to crack down on unnecessary waivers. It also directs the General Services Administration to publish relevant waivers on a publicly available website.
Connects new businesses to contracting opportunities by requiring active use of supplier scouting by agencies. This Executive Order directs agencies to utilize the Manufacturing Extension Partnership — a national network in all 50 states and Puerto Rico, that supports small and medium-sized manufacturers — to help agencies connect with new domestic suppliers who can make the products they need while employing America’s workers.
Reiterates the President’s strong support for the Jones Act. The President will continue to be a strong advocate for the Jones Act and its mandate that only U.S.-flag vessels carry cargo between U.S. ports, which supports American production and America’s workers. With the signing of the 2021 National Defense Authorization Act, the Jones Act has also been affirmed as an opportunity to invest in America’s workers as we build offshore renewable energy, in line with the President’s goals to build our clean energy future here in America.
Directs a cross-agency review of all domestic preferences. The order requires agencies to report on their implementation of current Made in America laws and make recommendations for achieving the President’s Made in America goals, and to continue to do so on a bi-annual basis. This review includes a requirement that agencies submit recommendations for ways to ensure items offered to the general public on federal property are Made in America — to the fullest extent possible—and to consider service industries in addition to manufacturing.

Supporting America’s Workers through Federal Purchasing

This order is deeply intertwined with the President’s commitment to invest in American manufacturing, including clean energy and critical supply chains, grow good-paying, union jobs, and advance racial equity. The federal government should buy from suppliers that are growing the sectors of the future and treating their workers with dignity and respect. The President remains committed to working with partners and allies to modernize international trade rules—including those related to government procurement–to make sure all countries can use their taxpayer dollars to spur investment in their own countries.

Click here to read the full text of the Executive Order, Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers

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