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A new law in Tennessee gives the state’s Department of Labor (DOL) sharper teeth with which to take a bigger bite out of workers’ compensation fraud in the construction industry. As of July 1, 2013, the Tennessee DOL not only has the ability to fine a contractor for not having a workers’ compensation policy, but now can assess administrative penalties for the fraud as well as refer cases where the fraud is discovered to the Tennessee Bureau of Investigation or to the local district attorney for further prosecution. The Society for Human Resource Management published an article written by Susan R. Heylman (subscription required) explaining the new authority this law gives the Tennessee DOL:“If the department finds that a construction company improperly classified workers as independent contractors rather than as employees, it may impose on the company fines of up to $1,000 or 1.5 times the average yearly workers’ compensation premium that the company should have paid for the workers.”
Reshaping the Construction Industry
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Key players in the Construction Career Collaborative (C3) met this past week to talk about the next steps for the group, as word about C3 spreads around the state and the nation. Among the biggest developments during the conference was the unveiling of the online database that will contain the safety and craft training information for workers. It’s a system that will ultimately be used to ensure that a perfectly tailored workforce is on each and every C3 jobsite. Under the system, workers will be assigned a C3 identification number that will allow for an instant search of each employee’s level of craft and safety training. “What follows the employee is that information, not who their employer is,” said C3 Executive Director Katrina Kersch. She said the employee’s compensation level would also not be available through that system. It is solely focused on the workers’ qualifications.Some have expressed concerns that the database could put personal information at risk. That’s because when the workers are entered into the system, their Social Security number is used as part of
August 07, 2013
Construction employment and spending grow in past year but slip in latest monthEditor’s note: Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Click here to view June metro employment tables.Nonfarm payroll employment increased by 162,000, seasonally adjusted, in July and 2,276,000 (1.7%) over 12 months, the Bureau of Labor Statistics (BLS) reported on Friday.
August 06, 2013
Last week Houston City Council’s Public Safety Committee held a hearing to discuss a proposed city ordinance to eradicate wage theft in the Houston area. The hearing included a presentation by Houston City Attorney David Feldman who explained the details of the proposal, and statements from members of the public who support it. Following the hearing, Scott Braddock interviewed Ed Gonzalez, Mayor Pro Tem of Houston and chairman of the Public Safety Committee. Read the following transcript of that interview, or watch the 4-minute video below. Scott Braddock: Talk a little about how this came about. This has been something the people have been asking for – pleading for – for years. Why now?Ed Gonzalez: We heard those concerns here at Council. The mayor and myself had assured that we were listening. We know the bureaucratic process can be slow at times, but we promise that we were listening and considering the feedback.
August 01, 2013
The Fort Worth Star-Telegram delved into the issue of worker misclassification this Sunday with an extensive piece about the steps that the Texas Legislature has put the state on track to implement next year. As we've reported, Gov. Rick Perry has signed a targeted crackdown on the misclassification of workers, which is also known as payroll fraud. But, as we've chronicled here, lawmakers took a pass on enacting a much broader bill that would have gone much further in addressing the problem.The Star-Telegram's Yamil Berard tells the story of workers on a federally-funded housing project:...as each Friday rolled around, the drywallers on the $31 million Buckeye Trail Commons project went home without one.The men likely will never get paid.
July 31, 2013
School starts again in a month or so across the nation and thousands of middle school and high school students will be asked to think about “what they want to be when they grow up” and to examine the careers available to them and to decide which path they will pursue.Just in time for the start of the school year, Trilogy Publications LLC has released the third book in their “Those Amazing…” series called Those Amazing Builders. The goal of this new publication is to get the word out to students about the opportunities in the construction industry. This 34-page, full color look at construction industry jobs and the impact that builders and designers have on the world is a great overview for students considering a possible career in construction.The project was underwritten by sponsors which included Skanska USA at the highest Diamond level, Ingersoll Rand at the Platinum level, RailWorks and Willis Group at the Gold level, and the General Contractors Association of New York, HOK, and the New York Building Congress all at the Silver level.I recently spoke with Rose Reichman, principal at Reichman Frankle, Inc., an award winning professional firm providing marketing, communications and public relations services for the Engineering and Construction Industry, about this publication.
July 30, 2013
"...You have to find them one at a time." Thanks to Ross Perot for that quote.Hi there. The Chamberlin Man here.We aim to soar at Chamberlin, and that's a culture that begins with...
July 30, 2013
Starts dip, MHC says; AIA, NABE find positive outlook; hotel construction is revivingEditor’s note: Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.The value of new construction starts in June edged down 1% from May at a seasonally adjusted annual rate, McGraw Hill Construction (MHC) reported on Monday. “Nonresidential building lost momentum in June after strengthening during the previous two months, and housing experienced a pause from its recent upward trend. Meanwhile, nonbuilding construction advanced in June, lifted by the start of several very large bridge projects. For the first six months of 2013, total construction starts on an unadjusted basis were… down 2% from the same period a year ago. The 2013 year-to-date decline for total construction was due primarily to a sharp reduction for electric utilities compared to a robust first half of 2012. If electric utilities are excluded, total construction starts for the first six months of 2013 would be up 9% from last year, led by substantial growth [28%] for housing,” which offset year-to-date declines of 9% for nonresidential building and 24% for nonbuilding construction.
July 29, 2013
Laws Fight Questionable Practices that Misclassify Workers or Seek to Avoid Paying State Employment Taxes or PremiumsThe Illinois Governor’s Office reported on Tuesday that Governor Pat Quinn signed new laws that day that will help protect Illinois workers’ pay by fighting questionable business practices, particularly in the construction industry. The laws deal with the misclassification of workers and the attempts of employers to avoid paying state employment taxes and premiums. This week’s action is part of Governor Quinn’s commitment to ensuring that all Illinois workers are treated fairly and receive the compensation they deserve.“Workers shouldn’t have to worry about whether their employers are following the rules and paying everything they owe,” Governor Quinn said. “These new laws will also help the state collect the money it’s owed and help those out of work find employment.”House Bill 2649, sponsored by State Representative Luis Arroyo (D-Chicago) and State Senator Bill Cunningham (D-Chicago), addresses a common construction industry practice of misclassifying workers as independent contractors.
July 26, 2013
We won’t say that the energy industry is “high on the success” of the recent development of the oil fields of West Texas, but they might be getting mighty close when real estate developers announce a monumental high rise to be built in the Permian Basin.That exact thing happened recently when Energy Related Properties partners Wendall “Scooter” Brown and Bill Meyer announced a 58-story mixed-use spec building in downtown Midland called Energy Tower at City Center designed to show that Midland is truly the “Oil Capital of America.”The Midland City Council bought the old County Courthouse site for $2.2 million to make way for this proposed building that, according to the brochure, will contain 564,000 square feet of Class A office space, a 198 room luxury hotel, 230,000 square feet of luxury residences, 53,500 square feet of retail, an entertainment center, and five levels of underground parking and infrastructure. You can watch a 4-minute video below which highlights the features of the project which is scheduled to be completed in 2016.The building designed by Edmonds International will rise out of Centennial Park in the heart of downtown Midland, and will be the tallest building in Midland by a factor of over two. Currently the Bank of America Building which opened in 1978 is the tallest, standing 24-stories high.
July 25, 2013
