Reshaping the Construction Industry

On Tuesday, the Texas House will consider what more needs to be done on the issue of worker misclassification. Mike Beeter, President and CEO of BRI Roofing in Fort Worth is very concerned about the practice, which has been called a “cancer” in the construction industry. We are pleased to publish his open letter to the members of the committee looking into it.Honorable members of the Texas House Committee on Business and Industry,I am writing today as a business owner concerned about a serious challenge facing not only my industry, but society at large. The problem is so immense that it will not be fixed without ethical companies as well as government joining together to stop the fraud known simply as “worker misclassification.” I am very glad to see your committee is considering what to do about the problem. Below, you will see my thoughts as to the real risk associated with keeping the status quo. The issue is complex and I am providing you with many details to consider. But, the bottom line is that worker misclassification is fraud, plain and simple.

Now that the Texas Legislature is taking a hard look at the way education reforms are being implemented across the state, I thought now would be a good time to reflect on my recent experience traveling to Austin to talk with the State Board of Education about this important issue. As you might have heard, lawmakers passed a reform bill last year that created more flexibility for students who are trying to get a high school diploma in Texas. Those of us in the trades, like construction, have been very supportive of this for two main reasons: we want to see as many young people succeed as possible, and we feel there’s a career for many of them in our industries.

A Texas House Committee has scheduled a hearing on the issue of worker misclassification and what more the state may need to do to combat the problem that is particularly rampant in the construction industry.  The House Business and Industry Committee will take testimony on the implementation of a limited crackdown that was signed into law by Governor Rick Perry last year.  The hearing is slated for Tuesday, April 22 at the state capitol.The official announcement of the public hearing says that the panel of lawmakers will be looking into “the issue of misclassifying employees as independent contractors on workers, employers, income tax withholding, and the unemployment insurance system.  And the review of current statutory deterrents, including those required by HB 2015.”  That bill just took effect on the first of this year.As our readers are well aware, the practice of employee misclassification happens when companies pretend their workers are independent subcontractors when, by law, those workers should be properly classified as employees.  

E'hem.  Excuse me for just a moment, but I have to toot the horn of my good friends at Chamberlin.  These folks sure are making me proud!In just the last few months, the Chamberlin team has been showered with kudos and awards from the likes of ABC, AGC, ASA, IREM and NRCA.  We have been honored for National Excellence in Construction, National Safety Excellence and Construction Safety Excellence.  Members of the Chamberlin team have been recognized for zero lost work days and named MVP by the Roofing Industry Alliance for Progress.  We've been honored for supporting the community at large and for being a player in our industry circle.