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Debunking top construction employment Law Myths

While failure to comply can be expensive, there are steps contractors can take to avoid repercussions. In fact, employees sue employers for unpaid overtime or minimum wage violations more often than any other reason. If the company knows or has reason to know that the employee is working overtime, it is liable and must pay for that overtime.

Debunking top construction employment Law Myths

In the overtime context, it is the employer’s obligation to keep and maintain accurate time records (a work schedule does not constitute an accurate time record). Moreover, if the employee recovers even one penny in unpaid overtime, the company more than likely will be required to pay double that amount as a penalty. In addition whether or not they are owners, individuals who have the authority to hire, fire, and set pay rates and/or work schedules can be held liable for unpaid overtime and minimum wages.

Paying an employee a salary or giving him the title of project manager does not mean the employee is not entitled to overtime. A project manager must be paid a minimum salary to be exempt; however, being paid a salary alone does not make the project manager exempt from the overtime law. For example, there are many cases in which a project manager was found to not be exempt from the overtime and minimum wage laws. As such, most construction companies try to claim the administrative exemption for their project managers.

Courts have found project managers non-exempt where they were essentially “babysitting” the construction or renovation to ensure it was completed in a timely manner in compliance with well-accepted industry standards and the specifications set forth in the builders’ contracts. Likewise, project managers not involved in negotiating or executing contracts, creating work orders or developing applicable standards tend to toe the line toward non-exemption. Rather, courts have found that these same duties did not constitute work directly related to the management or general business operations of the contractor.

Let’s say employees are required to come to the office or warehouse in the morning and drive in a company vehicle to the construction site. The employee’s workday begins when he arrives at the job site. Many times, employees claim in court that they did not take a lunch break and deducted hours should have been paid.

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