You thought you were running a tight operation. Your crews showed up on time, projects finished on schedule, and everyone seemed happy. Then your former foreman filed a Department of Labor complaint claiming he was misclassified as an independent contractor when he should have been an employee.
Now the DOL is investigating not just his classification, but your entire payroll operation. They’re looking at overtime violations, prevailing wage compliance, and worker classification issues going back several years. The potential exposure: hundreds of thousands of dollars in back wages, penalties, and legal fees.
Worse, your bonding company is asking questions, and that federal project you’re bidding on is now at risk because of the ongoing investigation.
This scenario destroys construction companies every month. And it’s completely preventable with proper employment law compliance.
Construction companies face employment law challenges that office-based businesses never encounter. Generic employment attorneys who handle restaurant workers and retail employees don’t understand the unique issues that can destroy construction businesses overnight. Construction labor law requires understanding both individual employment issues and the broader workforce management challenges that construction companies face daily.
Unlike general employment law practice, construction employment law requires understanding industry operations, safety regulations, and the complex worker relationships unique to construction projects.
The problem: The line between employee and independent contractor is blurrier in construction than in any other industry. You’ve got crew leaders who bring their own tools, subcontractors who work exclusively for you, and specialized tradesmen who work on multiple projects simultaneously.
Why it’s dangerous: The Department of Labor specifically targets the construction industry for both employment and labor law violations. They assume construction workers are employees unless you can prove otherwise, and their standards are strict and getting stricter.
Real consequences: Beyond back wages and overtime, misclassification triggers workers’ compensation violations, unemployment insurance issues, and tax penalties. One misclassified “contractor” can result in substantial financial liability in a single case.
The problem: Government projects require prevailing wage compliance, but the rules are complex and constantly changing. Different trades have different rates, apprentice ratios must be maintained, and certified payroll records must be perfect.
The hidden traps: Failing to pay the correct prevailing wage isn’t just a contract violation; it’s a federal crime. Errors in certified payroll can trigger DOL investigations, disqualify you from future government work, and result in personal criminal liability for business owners.
What most contractors don’t realize: Prevailing wage violations can void your entire contract, forcing you to return all payments received. We’ve seen contractors lose millions on projects they completed successfully because of payroll violations.
The problem: Construction sites are inherently dangerous, and safety incidents are common. But when you discipline or terminate workers after safety violations, you risk retaliation claims under federal whistleblower laws.
The legal trap: Workers who report safety violations or even just get injured are protected from retaliation. Terminating them, reducing their hours, or changing their job duties can trigger federal lawsuits with automatic attorney fees for the worker.
The business impact: Beyond legal fees, retaliation claims can disqualify you from government contracts and trigger additional OSHA enforcement actions. Your safety record becomes evidence against you in every future case.
After 17+ years representing construction companies, I’ve seen employment law mistakes destroy businesses faster than any contract dispute. The construction industry faces unique challenges that generic employment attorneys simply don’t understand. A restaurant worker who shows up late is different from a crane operator who creates safety risks. Office dress codes don’t translate to job site safety requirements. And the stakes are much higher when your mistakes can get people killed.
– Karalynn Cromeens, Managing Partner
DOL Investigations That Shut Down Projects. When the Department of Labor opens an investigation, they often freeze federal project payments pending resolution. This can destroy your cash flow overnight and force you to find emergency financing just to keep operating.
Class Action Lawsuits From Misclassification. One “independent contractor” who files a wage claim can trigger a class action, including every similar worker over the past several years. The legal fees alone can be substantial, even if you win.
Loss of Government Contracts. Employment law violations can disqualify you from federal, state, and local government work. This doesn’t just affect current bids – it can void existing contracts and prevent you from bidding for extended periods.
Personal Liability for Business Owners. Many employment law violations create personal liability that can’t be discharged in bankruptcy. Business owners have lost their homes, retirement accounts, and personal assets due to willful wage violations and safety-related employment claims.
Your challenge: Generic employee handbooks don’t address job site conditions, safety requirements, or the complex employment relationships common in construction.
Our solution: We create employment policies specifically designed for construction operations. Our handbooks address weather delays, job site safety, tool and equipment policies, and the unique scheduling challenges of construction work.
What you get: Employment policies that work in construction environments, reducing disputes and providing legal protection when issues arise.
Your challenge: Determining who’s an employee versus an independent contractor in construction requires understanding both legal standards and industry practices.
Our solution: We audit your worker classifications using DOL guidelines and construction industry precedents. We identify potential problems before the government finds them and help you restructure relationships to comply with current law.
What you get: Confidence that your worker classifications will withstand DOL scrutiny, plus documentation to support your decisions if questioned.
Your challenge: Government project requirements are complex and constantly changing, but violations can destroy your business and create criminal liability.
Our solution: We help you establish prevailing wage compliance systems that ensure accurate wage rates, proper record keeping, and certified payroll accuracy. We stay current on rate changes and regulatory updates.
What you get: Systems that prevent costly violations while allowing you to bid confidently on lucrative government projects.
Your challenge: Overtime calculations are complex in construction due to travel time, on-call requirements, and fluctuating crew compositions.
Our solution: We audit your payroll practices to identify potential wage and hour violations before they become expensive lawsuits. We review time keeping procedures, overtime calculations, and break/meal period policies.
What you get: Early identification of problems when they’re still fixable, preventing class action lawsuits that can result in significant financial exposure.
When the DOL comes knocking, every response matters. We handle the entire investigation process, from initial document requests through final resolution, protecting your interests while maintaining necessary cooperation.
Our approach: Immediate damage control to protect ongoing operations, strategic document production that doesn’t create additional liability, and aggressive negotiation to minimize financial exposure.
Individual wage claims often become class actions affecting your entire workforce. We defend against these cases while protecting your ability to continue operations and maintain crew relationships.
What we prevent: Automatic attorney fee awards, broad discovery that disrupts operations, and settlements that establish precedents for future claims.
When safety incidents lead to employment disputes, you need attorneys who understand both OSHA requirements and employment law. We defend against retaliation claims while protecting your safety programs.
Our advantage: We understand how safety violations interact with employment law and can prevent safety incidents from becoming ongoing legal nightmares.
Construction job sites create unique challenges for preventing discrimination and wrongful termination claims. We defend these cases while helping you maintain the crew dynamics necessary for safe and productive operations.
We help you properly classify workers, defend against misclassification claims, and restructure relationships to comply with current law while maintaining operational flexibility.
From bid preparation through project completion, we ensure your government projects comply with complex prevailing wage requirements that can void contracts if violated.
When your crews work across state lines, multiple employment laws apply. We help you navigate different state requirements while maintaining consistent employment practices.
OSHA violations often trigger employment lawsuits. We defend against retaliation claims while protecting your safety programs and preventing future incidents.
Construction overtime calculations involve unique issues like travel time, on-call pay, and piece-rate work. We ensure your payroll practices comply with federal and state requirements.
Whether you work with union crews or maintain non-union operations, we help you navigate the complex employment law requirements that apply to construction operations.
Whether you operate union or non-union, we help you navigate construction labor law requirements, manage workforce transitions, and handle labor-related disputes that can disrupt project schedules.
Every day you operate with non-compliant employment practices, you’re creating potential liability. DOL investigations, class action lawsuits, and employment disputes can destroy construction companies that have operated successfully for decades.
The cost of prevention is a fraction of the cost of defense. A compliance review can prevent lawsuits that cost hundreds of thousands of dollars.
Compliance Audit and Review. We’ll audit your current employment practices and identify potential problems before the government finds them. Comprehensive reviews completed efficiently.
Emergency Response for Active Investigations. If you’re already facing a DOL investigation or employment lawsuit, we provide immediate response to protect your interests and minimize business disruption.
Ongoing Compliance Support. Employment laws change constantly. We provide ongoing support to keep your practices current and compliant as regulations evolve.
Rapid Response for Urgent Employment Issues. When employment crises hit, waiting can make everything worse. We respond quickly with immediate guidance and action steps.
Contact The Cromeens Law Firm today: (713) 715-7334
Don’t let employment law violations destroy the construction business you’ve worked so hard to build.
The DOL specifically targets construction for enforcement actions. Construction is consistently one of their highest enforcement priorities, making proactive compliance essential.
The DOL specifically targets construction for enforcement actions. Construction is consistently one of their highest enforcement priorities, making proactive compliance essential.
The legal test focuses on control and economic dependence, not just how you’ve structured the relationship. Many construction “contractors” would likely be classified as employees under current DOL standards.
Yes. State employment laws vary significantly, and you must comply with the most restrictive requirements. Multi-state operations require careful compliance planning.
Much less than violations. A comprehensive compliance review is a modest investment compared to the cost of DOL violations, which can be catastrophic for construction companies.
Yes, our construction labor law experience covers both union and non-union operations. We understand the workforce management challenges that construction companies face regardless of their labor relations structure.
Ready to protect your construction business? Call (713) 715-7334 now for immediate consultation.
The Cromeens Law Firm offers a comprehensive retainer package tailored exclusively for clients in the construction industry. With our firm’s deep expertise in construction law, our retainer package ensures you have access to top-notch legal services whenever you need them.
