If you’re a remodeler, new-home builders, or construction supply firm that takes pride in how you keep an army of independent subcontractors working virtually fulltime for them should take note: Washington increasingly views your relationship as good reason for making you treat those subs as employees.
The toughening stance at the Labor Department (DOL) on the issue–best exemplified by an administrator’s interpretation issued July 15 by the head of the Wage and Hour Division–has set off alerts within the construction community. At the least, Washington’s stepped-up campaign should prompt companies that treat subcontractors as independent firms to re-examine whether their business practices can pass Labor’s evolving standards. One good starting question is: Do you give your subs so much work that they pretty much don’t do jobs for anyone else?
