From the category archives: Legal

Legal

Employment Agreements Mitigate Construction Litigation Concerns

Employers often only require employees serving in a management position to execute employment agreements with provisions largely focused on competition, disclosure and solicitation. However, a more expansive use of employment agreements should be considered, particularly given the increased resort to litigation by all levels of employees utilizing the provisions of the Fair Labor Standards Act (FLSA).  

The FLSA essentially requires employers to properly compensate non-exempt employees for their actual hours worked at a regular rate for their first 40 hours worked during each week, as well as at an overtime rate of time and a half for every hour worked beyond the initial 40. With vastly increasing regularity, employees have been initiating litigation against employers in an effort to recover additional compensation for overtime hours. Employers utilizing a job bonus system for compensation, with or without an hourly rate of compensation, are particularly targeted, as are employers that fail to collect or maintain accurate time records. 

Final Rule Revises EEO Framework for National Apprenticeship Act

  The U.S. Department of Labor’s Employment and Training Administration issued a final rule updating the equal employment opportunity regulations that impact the National Apprenticeship Act of 1937. Current regulations prohibit discrimination in registered apprenticeship programs on the basis of race, color, religion, national origin and sex. An amendment to 29 CFR Part 30 updates the equal employment opportunity standards to include age (40 or older), genetic information, sexual orientation and disability among the protected base.

Kentucky and Missouri Become Right to Work States

  Kentucky and Missouri recently passed legislation that prevents workers from being required to join a labor union in order to accept or maintain a job, making them the 27th and 28th Right to Work states, respectively.

Injunction Blocks Overtime Rule

Responding to a legal challenge filed by Associated Builders and Contractors (ABC) and a coalition of business groups, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction blocking the U.S. Department of Labor’s final overtime rule from taking effect Dec. 1. 

Court Blocks 'Persuader' Rule

  In mind-November, the U.S. District Court for the Northern District of Texas found the U.S. Department of Labor’s “persuader rule” to be unlawful and blocked it from taking effect.

Curb Discovery Costs With a Tailored Arbitration Clause

Arbitration is premised on using arbitrators with knowledge of the subject matter to conduct more efficient proceedings. A lot of the uncertainty and expense can be eliminated with a well-crafted arbitration clause.  

Trump Administration Promises Regulatory Relief

In November, Democrats netted a total of six seats in the U.S. House of Representatives and two seats in the U.S. Senate, falling short of the predictions of many political experts. Additionally, more than 200 candidates endorsed by Associated Builders and Contractors (ABC) in the House and 21 in the Senate were elected or re-elected, reflecting a better than 90 percent candidate success rate for those ABC endorsed. 

Revised I-9 Form Now Available; Required by Jan. 22

The Department of Homeland Security and U.S. Citizenship and Immigration Services (USCIS) have released a revised I-9 Form that employers must use beginning Jan. 22, 2017, to verify all new hires' employment eligibility, including U.S. citizens and non-citizens. Employers who fail to use the new form on or after Jan. 22 may be subject to penalties.

Don’t Wait Until It’s Too Late to Understand Protective E&O Policies

  Protective E&O is an essential insurance policy where perceived concerns about the amount and adequacy of the design firm’s professional liability insurance can be questioned in relationship to the complexity and size of the project. Brokers and insureds need to be aware of several seemingly innocuous clauses contained in many of these policies.

LEED Liability: Construction Contract Concerns for Green Building Projects

Despite the continuous narrative tied to green building, construction contracts have simply not kept pace, and most form contracts or standard clauses do not address contractual issues specific to sustainable projects. 
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