A new rule from the U.S. Department of Labor is broadly expected to result in more workers being classified as “employees” under the Fair Labor Standards Act (FLSA). Although the final rule faces challenges in court, employers should be prepared for the rule on independent contractor classification to go into effect March 11, 2024. Employers should review their relationships with workers currently classified as independent contractors to determine if they should be re-classified as employees. Misclassification could result in significant liability for unpaid wages (including unpaid overtime), employee benefits, and unpaid employment and other taxes.
ԹϺ recently submitted comments on the U.S. Department of Labor (DOL) Employment and Training Administration’s (ETA) proposed rule to “revise the regulations for registered apprenticeship by enhancing worker protections and equity, improving the quality of registered apprenticeship programs, revising the State governance provisions, and more clearly establishing critical pipelines to registered apprenticeship programs, such as registered career and technical education (CTE) apprenticeships.”
The Office of Federal Contract Compliance Programs (OFCCP) recently released new resources to help veterans and employers understand the protections under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) of 1974.
Whether you love them or hate them, project labor agreements (PLAs) are a reality. In light of the new federal contractor PLA mandate and a growing number of state and local orders requiring or encouraging PLAs, contractors need to understand the intricacies of PLA terms and conditions now more than ever.
ԹϺ Smartbrief recently wrote a story addressing project delivery methods that featured the ConsensusDocs’ design-build and construction management at-risk standard contracts with the following:
On April 24, the Occupational Safety and Health Administration (OSHA) plans to consult the Advisory Committee on Construction Safety and Health (ACCSH) on its proposed regulatory framework for the Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings rule.
The 2024 ԹϺ/FMI Study highlights key risks in the construction industry. Based on responses from ԹϺ's in-house risk managers workgroup (collected Dec. 2023 – Jan. 2024), the top concerns include labor shortages, design issues, changes in insurance terms and costs, project delays or cancellations, and changes in contract language. However, one of the most alarming trends highlighted by the study is the uptick in subcontractor defaults. Seventy percent of respondents are seeing an increase in subcontractor defaults compared to one year ago, with nearly half reporting firsthand experience of project disruptions due to subcontractor defaults. Root causes behind subcontractor distress include financial instability, lack of skilled labor, and quality issues -- especially affecting electrical, plumbing, and concrete trades. In response, construction risk managers are enhancing subcontractor prequalification measures, including more thorough financial and staffing evaluations, seeking out new subcontractors, and increasing review frequency.