Tips to Protect Your Construction Investment

It is the Labor Enforcement Task Force’s duty to ensure employers follow labor, licensing and payroll tax laws. In an effort to avoid penalties as a business owner you need to understand what specific laws apply to your company.

Are you aware of the penalties involved with misclassifying an employee as an independent contractor?

Fines can vary between $5,000 to $25,000 per violation (not including any unpaid payroll taxes).

How about the penalty for violating health and safety rules?

LETF can slap you with a fine of up to $25,000 for each serious violation. If they discover too many, they can even shut down your operation.

Are you failing to provide workers’ compensation insurance?

If so, you could be issued a fine of $1,500 per employee and lose valuable hours as all employees are required to hault their work until insurance is provided.

As an employer your key responsibilities are to:

  • Pay at least minimum or prevailing wage as well as overtime for extra hours
  • Provide a safe workplace
  • Pay all payroll taxes as well as keep track of your employee records
  • Have the appropriate licenses and permits
  • Provide rest and meal breaks

That’s on top of running and operating your business projects, deadlines, working with vendors and keeping up with your books.

Boy do you have a lot on your plate.

Are you feeling overwhelmed yet?

Don’t worry, we’re here to help! Below is a list of the 5 most common LETF issues.

Typical LETF compliance issues for construction are:

  1. Licensing – Operating a construction business without a contractor’s license or hiring unlicensed subcontractors.
  2. Employees – Misclassifying employees as independent contractors or not appproriately keeping all of their records.
  3. Wages – Not paying workers the wages they are owed.
  4. Breaks – Not allowing rest or meal breaks. In California, a paid 10 minute rest break for every 4 hours of work is required as well as an unpaid meal break of at least 30 minutes after 5 or more hours.
  5. Health & Safety – Fall, scaffolding and excavation hazards, inadequate drinking water, clean toilet facilities, and an appropriate heat prevention plan are all required.

Stay ahead of the game by auditing your records every few months. One way you can ensure your are within compliance guidelines is to incorporate systems that automate your workforce processes.

With an advanced cloud-based time and attendance system your company can automate any federal or state tax regulations simply and efficiently. With the push of a button, accurate time and attendance data is automatically updated into your payroll system.

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