There have been several new laws in 2016, or new enforcement styles of existing laws, that are ready to make their mark on the construction industry. Among them are the US Department of Labor’s new rules on overtime pay and the Fair Pay and Safe Workplaces Act. Both laws affect the amount construction employees must be paid and when they should receive that pay, so documentation of employee time sheets and payments is becoming increasingly important. If your company plans to bid on any Federal Government work, violations of these new laws can keep you from getting the job.
Last year, we wrote about a great time sheet software, called TSheets, which electronically tracks time sheets and paychecks, integrates with QuickBooks and even allows employers to implement GPS tracking. Recently, the software company has put together an in-depth and interactive tool which highlights all successful cases of Fair Labor Standards Act lawsuits since 1985.
In the construction industry alone, there have been 11,000 successful wage and hour prosecutions by the Department of Labor against construction firms since 1985. TSheets also found that nationally, around 75% of DOL investigations lead to a prosecution. This is probably because, by its own admission, the DOL typically goes after the most egregious cases.
The average cost of a DOL prosecution is $13,720 (excluding legal fees) to each construction firm affected. The industry as a whole has repaid $152,133,833 in back wages to employees as a result of these prosecutions, as well as $3,039,244 of fines (civil money penalties) — making the total cost to the industry $155,173,076.
The worst affected businesses are:
- All Other Specialty Trade Contractors* (1,130 prosecutions, $14,296 cost per prosecution)
- Plumbing, Heating, and Air-Conditioning Contractors (1,088 prosecutions, $12,390 cost per prosecution)
- Commercial and Institutional Building Construction (1,065 prosecutions, $14,811 cost per prosecution)
- Electrical Contractors and Other Wiring Installation Contractors (771 prosecutions, $12,413 cost per prosecution)
- Roofing Contractors (686 prosecutions, $9,864 cost per prosecution)
(*The "All Other Specialty Trade Contractors" category is defined here and essentially means subcontractors.)
The worst affected states are:
- Texas (1,567 prosecutions, costing the state's construction firms $25,735,980)
- Florida (1,043 prosecutions, costing the state's construction firms $11902428.5)
- California (687 prosecutions, costing the state's construction firms $17,357,780)
- Pennsylvania (490 prosecutions, costing the state's construction firms $4,927,409)
- New York (438 prosecutions, costing the state's construction firms $5,674,116)
If you haven’t been taking wages and the laws surrounding them seriously, it’s time to start, especially as they begin to not only affect your current financials, but also you future financials if you’re disqualified from new projects. If you’re in need of some advice on how to protect yourself and your business from an FLSA lawsuit, TSheets also gathered some invaluable legal advice from industry experts, which you can find by clicking here.
On January 1, 2017, OSHA officially put into effect a revision to workplace injury and illness reporting that requires certain employers to submit recorded information of these instances electronically. Companies were to submit all of this information from the previous year (2016) by July 1, 2017, but now that due date is in jeopardy.
The worst day on the job is when someone on site gets injured. The 2nd through 500th worst days are the legal battle that follows many of those injuries. Nobody expects accidents to happen, but it’s best to be adequately prepared if one does. That not only includes knowing how to react to injuries with a safety plan, but also making sure your company’s documentation is in order in case lawsuits start flying.
The following article was written by Miami Construction Lawyer Alex Barthet
In a court of law, a contractor’s daily reports are critical. In many instances, they are considered key evidence showing what actually occurred at specific times on the job. And since people’s memories fade, a court will likely rely heavily on what the daily reports say happened (especially when presented with a corroborating witness).
Softwood lumber, often used for structural framing and decking, among other uses, may be seeing a price increase in the US in the near future. On Monday, the U.S. Department of Commerce (DOC) has announced that they will be imposing tariffs of up to 24% on all softwood lumber imported from Canada.
The following is a guest post written by Laurence Banville, Esq.
Construction is on the rise again, especially in the Northeast region of the U.S. The attractive landscapes of Maine, Vermont, New Hampshire, Pennsylvania, and New York are drawing people back to the east coast. People are finding that they can get that country home feel with metropolitan access, and most are building new homes and businesses in these states for that very reason. Of course, with new and increased construction comes new and increased personal injury cases. Newer technology and methods of construction are also changing the frequency and types of injuries too. All those changes seem to be changing construction law practice.
In February, the House of Representatives voted 236-187 on a resolution to block the ‘blacklisting' rule, sending it to the Senate for a second vote. The act would have given the federal government the ability to disqualify contractors if they violated any of the 14 labor laws, which can be found here, over the past 3 years on any project totaling $500,000 or more
As of the first quarter of 2016, the Bureau of Labor Statistics (BLS) reports that there are over 768,000 construction companies currently operating in the private industry in America. There are also countless more that have come and gone. According to Statistic Brain, only 47% of construction startup businesses are still operating after year 4. Personally, I've seen many people break off from a construction company and create their own business; some are still in operation, others have failed.
OSHA inspectors and city building officials are usually the people that can make life pretty uncomfortable for construction companies, but it’s a whole different story when the FBI comes calling. A new stadium for the Double-A minor league baseball team, the Hartford Yard Goats, was supposed to open before the 2016 season, but delays and cost overruns have pushed that opening well into 2017. Now, the FBI is investigating, according to the Hartford Courant.
In an announcement made in mid-January, the US EPA has officially released the updated 2017 Construction General Permit (CGP) for Stormwater Discharges from Construction Activities. The draft of the new permit was released last year and the 45 day public comment period ended on May 26, 2016. The 2017 CGP will go into effect starting February 16, 2016.
In July of 2016, the Fair Pay and Safe Workplaces Executive Order was signed into effect and has been a hotbed of controversy, especially within the construction industry, ever since. The act would have given the federal government the ability to disqualify contractors if they violated any of the 14 labor laws, which can be found here, over the past 3 years on any project totaling $500,000 or more.