Revisiting OSHA’s Controlling Employer Policy
December 21, 2017 —
Wally Zimolong - Zimolong LLCThe United States Court of Appeals for the 5th Circuit has been asked to review OSHA’s twenty year old “controlling employer” policy. As many contractors are surprised to learn, under OSHA’s controlling employer policy, you can be given an OSHA citation even when your own employee is not exposed to the alleged hazard.
A. The Controlling Employer Policy
OSHA’s current controlling employer policy has been effective since 1999. That policy applies to multi-employer worksites, which means virtually all construction sites. Under the policy, OSHA can cite the creating, exposing, correcting, or controlling employer. A creating employer is one who creates the hazard to which workers are exposed. The exposing employer is one who permits his employees to be exposed to the hazard, whether it created the hazard or not. The correcting employer is one who is responsible with correcting known hazards. Finally, the controlling employer is one “who has general supervisory authority over the worksite, including the power to correct safety and health violations itself or require others to correct them.” Most general contractors and CM’s are controlling employers.
Under OSHA’s policy, a contractor’s OSHA safety obligations hinges on whether it is a creating, exposing, correcting, or controlling employer. The creating, exposing, and correcting contractors obligations are fairly straightforward. However, the controlling contractors obligations are more nuisanced.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
White Collar Overtime Regulations Temporarily Blocked
November 23, 2016 —
George Morrison – White and Williams LLPOn November 22, 2016, a Texas federal court issued a preliminary injunction that temporarily blocks the U.S. Department of Labor (DOL) from implementing and enforcing its revised white collar overtime regulations nationwide. The regulations were to take effect on December 1, 2016. For background on the DOL's Final Rule, see our alert, DOL Issues Final Rule Amending Overtime Exemptions Under FLSA.
The decision was issued in a consolidated set of cases brought by 21 states and several business organizations. The cases challenge the changes to 29 C.F.R. Part 541, which defines the standards for evaluating whether employees are exempt executive, administrative, and/or professional employees. Under the current regulations, the minimum salary requirement for these exemptions is $455 per week. Under the revised regulations, the minimum salary would more than double to $913 per week. The Texas court found that the plaintiffs’ challenge to the final regulations has a substantial likelihood of success and that the plaintiffs have shown that they would be irreparably harmed if the rule was not enjoined.
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George Morrison, White and Williams LLPMr. Morrison may be contacted at
morrisong@whiteandwilliams.com
Continuity and Disaster Recovery Plans for Contractors: Lessons From the Past
November 28, 2022 —
Rich Sghiatti - Construction ExecutiveThere is no shortage of natural disasters to illustrate the importance of being prepared. Wildfires, hurricanes, winter storms and floods can hit a construction job site hard. Appropriate property-casualty insurance and surety bonds are necessary protections for a contractor and project owner. But the addition of well-thought-out continuity and disaster recovery plans will better position the contractor to deal with whatever Mother Nature brings.
Consider Hurricane Katrina, the costliest hurricane to hit the United States. Pummeling Florida, Louisiana and Mississippi in August 2005, the storm led to 1,833 fatalities and an estimated $108 billion in damages. Levees meant to protect New Orleans from Lake Pontchartrain did not hold, flooding 80% of the city.
Utilities including power, water and sanitary sewers were severely damaged. Homes were destroyed. Roadways were closed. Communications systems were down.
Contractors who had good business continuity and disaster recovery plans fared better than those who did not.
Reprinted courtesy of
Rich Sghiatti, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Handshake Deals Gone Wrong
May 22, 2023 —
Jessica Allain - ConsensusDocsThe construction industry has it fair share of “handshake deals”, oral agreements relying on the integrity of the people involved. But when it comes to protecting and enforcing legal rights, it is always a better idea to properly paper the deal and get it in writing. Otherwise, contractors relying on verbal promises may find themselves without any legal remedy should the deal go south. After all, it is not just a matter of trust, but also a way to document that everybody agrees on what the terms of the deal actually are.
For example, a recent case out of New York highlights the dangers of unwritten promises. In Castle Restoration, LLC v. Castle Restoration & Construction, Inc., No. 16349-15 (N.Y. App. Div. 2/9/22), 2022 NY Slip Op 50082(U), 2022 WL 402882, 2022 N.Y. Misc. LEXIS 485, Castle Inc. and Castle LLC entered into a deal for an asset sale to transfer equipment and a client list from Castle Inc. to Castle LLC. While that initial asset sale was properly papered with sale documents and a promissory note, the parties entered into a subsequent handshake/oral agreement where Castle LLC agreed to provide Castle Inc. with labor and materials on construction projects, and those goods and services would offset the payment obligation under the promissory note. But the problem was that the contract for the asset sale had a provision that the agreement could not be changed by oral agreement; rather, any changes had to be made in writing.
Reprinted courtesy of
Jessica Allain, Jones Walker LLP (ConsensusDocs)
Ms. Allain may be contacted at jallain@joneswalker.com
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Nuclear Energy Gets a Much-Needed Boost
August 05, 2024 —
The Editorial Board - BloombergPresident Joe Biden, as you’ve no doubt heard, has had a rough few weeks. Yet on Tuesday, he signed a bill into law that could well prove transformative for America’s energy future. Here’s hoping — whatever happens in November’s election — that more progress lies ahead.
Known as the Advance Act, the bill seeks to remedy some long-standing flaws in nuclear-energy regulation. To reach net zero, the world will need to roughly double its nuclear capacity by 2050, according to the International Energy Agency. Yet constructing new nuclear plants in the US is expensive, time-consuming and encumbered by red tape. Partly as a result, the industry has stagnated: The share of electricity generated by nuclear is projected to decline to about 12% by 2050, from about 18% today.
The Advance Act should help reverse that trend. As a start, it makes useful reforms to the Nuclear Regulatory Commission, allowing the agency to hire more staff, reduce licensing fees, speed application processing and ease the burden of environmental reviews. It also makes a small but consequential change to the commission’s mission, requiring it — after decades of focusing on potential threats — to also consider the vast public benefits of nuclear energy when making regulatory decisions.
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The Editorial Board, Bloomberg
Alaska District Court Sets Aside Rulings Under New Administration’s EO 13795
May 06, 2019 —
Anthony B. Cavender - Gravel2GavelOn March 29, the U.S. District Court for the District of Alaska issued two separate rulings that reversed and set aside energy and environmental decisions made by the current administration, which had revoked decisions made in these same matters by the prior administration. The cases are League of Conservation Voters, et al., v. Trump (concerning the development of oil and gas leases on the Outer Continental Shelf (OCS)) and Friends of Alaska National Wildlife Refuges, et al., v. Bernhardt, Acting Secretary of the U.S. Department of the Interior (which concerns a Land Exchange that would facilitate the construction of a road between two remote Alaska communities when that road would traverse parts of a designated national wilderness).
In the League of Conservation Voters matter, the District Court held that the President’s Executive Order 13795 (released on April 28, 2017), which purported to revoke President Obama’s decisions to withdraw certain OCS tracts from oil and gas exploration and development, was unlawful because it was not authorized by Section 12(a) of the Outer Continental Shelf Lands Act (OCSLA). In 2015 and 2016, President Obama issued Presidential Memorandums and an Executive Order withdrawing these particular tracts.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
South Carolina Law Clarifies Statue of Repose
July 11, 2011 —
CDJ STAFFA new law in South Carolina, H 3375, fixes a loophole in that state’s statute of repose. State law puts a cap of eight years on construction defects, but the 2008 law that set that limit had a loophole that would allow for construction defect claims to start thirteen years after construction. The law also provides a cap on punitive damages.
The measure was backed by the Carolinas Association of General Contractors. Their spokesperson said that the legislation “increases our state’s ability to be economically competitive and helps protect our members from frivolous lawsuits.”
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Read South Carolina H 3375…
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Private Statutory Cause of Action Under Florida’s Underground Facility Damage Prevention and Safety Act
July 11, 2021 —
David Adelstein - Florida Construction Legal UpdatesFlorida’s Underground Facility Damage Prevention and Safety Act is set forth in Florida Statutes Chapter 556. Any owner or operator of underground infrastructure as well as contractors that perform underground excavation and demolition operations are familiar (or, need to be familiar) with this Act and the requirements it imposes on them.
In a nutshell, this Act requires excavators to notify operators of underground facilities (e.g., pipelines, cables, sewers) through a notification system before excavating or demolishing an underground location. Then notification system gives the operator of the underground facility two days’ advance notice that an excavation will be taking place. After receiving this notice, the operator of the underground facility must mark the area where its infrastructure is located which could be affected by the underground excavation or demolition operations. The Act further imposes duties on excavators to use increased caution, supervise mechanized equipment, perform excavation and demolition operations in a careful an prudent manner, and to re-notify the notification system if the operator’s marking is no longer visible so the location of the operator’s underground facility can be re-marked.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com