An Alaska contractor has filed a federal lawsuit challenging an executive branch mandate that forces companies to sign union agreements to qualify for federal construction work.
The lawsuit, filed Nov. 5, says the executive branch may not exercise powers not granted by the U.S. Constitution and Congress, such as enforcing “broad labor policies that Congress never contemplated or approved.”
The lawsuit alleges that when unelected officials write binding rules without clear legal boundaries, they undermine democratic accountability and endanger the individual freedoms that the separation of powers should protect.
At the center of the lawsuit is a company owned by Alaska contractor Bill Slayden. In 1979, he started a small plumbing business in his garage in Alaska. Over 40 years, Slayden Plumbing & Heating, Inc. has grown into a leading mechanical engineering company with over 60 employees. Today, the majority of Slayden's revenue comes from large federal projects.
Because of what he calls “executive overreach,” Slayden is now barred from bidding on federal projects that generate more than 80% of his revenue unless his company submits to what he believes are unlawful mandates.
Slayden is represented by the Pacific Legal Foundation, a national nonprofit law firm that defends constitutional rights and individual liberties threatened by government overreach and abuse. With active litigation in 34 states and Washington, DC, PLF represents clients in state and federal courts and has achieved 18 victories in 20 cases argued before the U.S. Supreme Court.
The mandate has forced Slayden into a situation where his employees have to join and pay dues to unions – something they don't want to do.
“In recent decades, both Democratic and Republican presidents have claimed broad authority to impose labor policies that Congress never passed,” said Kerry Hunt, an attorney at the Pacific Legal Foundation, which is representing Slayden for free. “In their view, federal procurement law delegates unlimited authority to pursue any labor policy – from raising the minimum wage federal contractors must pay to imposing labor contracting mandates with unions. This blatant overreach violates the separation of powers designed to protect our freedoms.”
Executive Order 14063 – issued by President Biden in 2022 and continued by the Trump Administration – requires contractors on federal projects over $35 million to enter into project labor agreements (PLAs) with unions. As a subcontractor, Slayden has no right to negotiate these agreements – the company must fully accept the terms written by others.
As Pacific Legal notes, the mandate has created an environment in which Slayden's employees “are required to join unions, which they have repeatedly refused to do because Slayden offers a robust benefits package.”
According to the lawsuit, Slayden has already withdrawn bids for two projects at Joint Base Elmendorf-Richardson because of the mandate. The company filed suit to restore its right to compete for federal jobs and to defend constitutional limits on executive power.
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According to Pacific Legal, President Biden's 2022 Executive Order 14063 torpedoed Bill's business. The order directed all federal contractors to enter into collective bargaining agreements with unions in order to compete for large federal construction projects. The Federal Acquisition Regulatory Council converted this into a mandatory regulation that took effect in January 2024. And the Trump administration continues to enforce this policy unchanged.
“As a subcontractor, Slayden has no right to negotiate these union agreements,” PLA said. “The company must sign contracts drafted entirely by others, without influence or bargaining power.”
The mandate has forced Slayden into a situation where his employees have to join and pay dues to unions – something they don't want to do. Slayden offers paid vacation, sick leave, a generous 401(k), comprehensive health insurance, and profit-sharing bonuses, all of which have led employees to consistently choose independence.
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