Employee or Independent Contractor? New Administrator’s Interpretation Issued by Department of Labor Provides Guidance
August 04, 2015 —
Tanya Salgado – White and Williams LLPThe question of whether a worker should be classified as an independent contractor or an employee is fraught with confusion and misunderstanding for many businesses. Compounding the problem is the fact that there are a number of different tests used to determine employee status, which vary by jurisdiction and by the particular law in question. For example, the Internal Revenue Service uses the common law rules which focus on the degree of control and independence exercised by the worker. In contrast, the United States Department of Labor uses the “economic realities” test which focuses on whether the worker is economically dependent on the employer.
In an effort to help combat the confusion over proper worker classification, the United States Department of Labor (DOL) has issued a new Administrator’s Interpretation that provides a detailed explanation of the test used by the DOL to determine if a worker has been misclassified as an independent contractor. The DOL enforces the Fair Labor Standards Act (FLSA), which mandates that employees (but not independent contractors) be paid minimum wage and overtime. When a business misclassifies non-exempt workers as independent contractors, and those workers are not paid the minimum hourly wage for their labor, or are not paid overtime when they work more than 40 hours in a workweek, this violates the FLSA.
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Tanya Salgado, White and Williams LLPMs. Salgado may be contacted at
salgadot@whiteandwilliams.com
America’s Factories Weren’t Built to Endure This Many Hurricanes
November 05, 2024 —
Brooke Sutherland - BloombergAmerica’s factories aren’t built for the current cascade of extreme weather events.
Dozens of
industrial sites were in the zone of impact as Hurricane Milton slammed into Florida’s West Coast this week, including several concrete plants, speed boat manufacturing operations and facilities owned by
Honeywell International Inc., Johnson Controls International Plc,
General Electric Co. and Illinois Tool Works Inc., among others. Meanwhile, a Baxter International Inc. facility in Marion, North Carolina, that makes 60% of the intravenous fluids used in hospitals around the country was
shuttered because of damage from Hurricane Helene just two weeks ago. Mines responsible for producing more than 80% of the world’s supply of commercial high-purity quartz in nearby Spruce Pine
were also affected by severe flooding, raising the risk of disruptions to semiconductor production, which relies on the material.
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Brooke Sutherland, Bloomberg
Eight Ways to Protect a Construction Company Before a Claim Is Filed
November 04, 2019 —
Mary Bacon - Construction ExecutiveClaims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers.
TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED
- Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
- Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
- Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.
Reprinted courtesy of
Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Bacon may be contacted at
mbacon@spencerfane.com
Additional Insured Not Entitled to Indemnity Coverage For Damage Caused by Named Insured
February 23, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe additional insured unsuccessfully sought to recover damages to its building caused by the named insured. Brit UW, Ltd. v. Tripar, Inc., 2017 U.S. Dist. LEXIS 2462 (N.D. Ill. Jan. 6, 2017).
Davis Russell Real Estate and Management LLC hired Tripar, Inc., a general contractor, to renovate a 12-unit apartment building. The entire roof was to be replaced by a roofing subcontractor. Davis Russell drafted a Professional Services Agreement (PSA) that governed the project. Tripar was to obtain a CGL policy and provide a certificate of insurance evidencing the coverage. Davis Russell was to be named as an additional insured.
Tripar's insurance broker prepared a certificate of insurance reflecting that a CGL policy was issued to Tripar by Brit UW, Ltd. But the certificate clearly stated that it was not issued by the insurer and that it did not alter coverage. The certificate of insurance further stated that it conferred no rights upon the holder.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Hotel Claims Construction Defect Could Have Caused Collapse
December 30, 2013 —
CDJ STAFFThe owners of the Crowne Plaza New Orleans Airport, in Kenner, Louisiana, have filed a lawsuit claiming that a defective beam installed during renovations put the building at risk of collapse, reports The Louisiana Record. The hotel was sold to its current owners, 2929 Williams Blvd, LLC, in 2006, and the renovations began after Hurricane Katrina in 2007. The renovations converted an indoor pool area into a ballroom.
The renovations were finished in 2008, but hotel staff noticed the walls and ceiling of the ballroom were sagging by September 2011. A structural engineer determined that a main beam had failed, risking collapse of the entire building. The hotel owners set upon repairing the structure and now seek reimbursement. 2929 Williams Blvd., LLC is suing Trimark Constructors LLC, Kyle Associates LLC, and Avengo Baily & Associates, Inc. for an unspecified amount of damages.
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Shifting the Risk of Delay by Having Float Go Your Way
July 05, 2021 —
Christopher J. Brasco & Matthew D. Baker - ConsensusDocsCritical path delay plays a central role in allocating responsibility for project delay. The interrelated concept of concurrency is also frequently determinative of entitlement on a range of claims including by owners for liquidated damages and by contractors for delay damages. What constitutes critical/concurrent delay, however, is hotly debated by scheduling experts. The lack of real consensus regarding how critical/concurrent delay should be determined and analyzed has created significant uncertainty in scheduling disputes. Indeed, courts have adopted differing and at times conflicting theories of concurrency that can produce divergent outcomes for the parties. In an effort to reduce uncertainty, stakeholders have increasingly adopted specialized contractual provisions and scheduling techniques which have significant implications for the evaluation of the companion concepts of criticality and concurrency. One such mechanism is float sequestration. Regardless of whether float sequestration is ultimately in the construction industry’s broader interest, stakeholders must be able to recognize its use and appreciate the implications for delay disputes on their projects.
Simply defined, float is the number of days an activity can be delayed before affecting the project’s critical path (i.e., the longest chain of activities which determines the project’s minimal duration). Typically, only delays affecting the critical path can produce concurrent delay. Consequently, the concept of float is integral to understanding and resolving issues of both criticality and concurrency.
Reprinted courtesy of
Christopher J. Brasco, Watt, Tieder, Hoffar & Fitzgerald, LLP and
Matthew D. Baker, Watt, Tieder, Hoffar & Fitzgerald, LLP
Mr. Brasco may be contacted at cbrasco@watttieder.com
Mr. Baker may be contacted at mbaker@watttieder.com
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Preventing Acts of God: Construction Accidents Caused by Outside Factors
September 20, 2017 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Seth Smiley. Seth, a native of Baton Rouge, is the owner of Smiley Law Firm. He is admitted to practice in all state and federal courts in Louisiana and California. Seth Smiley is the son of a general contractor, and acquired valuable work experience in the construction industry prior to entering law school. He earned his J.D. from Loyola, New Orleans in 2009. In his practice, Seth handles all aspects of construction cases, from initial contracting all the way to final payment once work is complete. Other areas of focus include commercial lease disputes, personal injury, business formation, and insurance property damage claims. Seth loves to fight insurance companies. Seth is currently the primary author of the Smiley Law Blog. The blogs primary focus is to provide value for current and prospective clients regarding trending legal issues in which the attorneys at Smiley Law Firm cover.
There are several factors a construction team can control on a job site. The foreman can ensure scaffolding is secure and that all employees are properly trained, and all workers can take steps to ensure a reasonably safe work site. Accidents can and will happen despite the best efforts of those involved.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Pedestrian, Utility Bridge Takes Shape on Everett Waterfront
December 16, 2019 —
Tim Newcomb - Engineering News-RecordAmidst the constraints of weight limits, a seawall, a waterfront restaurant and high-voltage power poles, crews from ICI Interwest Construction Inc. and heavy mover Oxbo Mega Transport Solutions positioned a $20 million, 282-ft-long pedestrian and utility bridge in place this fall along the Everett, Washington, waterfront.
Reprinted courtesy of
Tim Newcomb, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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