The Tri-State/Service Group does not use subcontractors. Our work is performed by our own in-house professionals who are trained for both quality and safety.
The U.S. Department of Labor recently issued a Notice of Proposed Rulemaking concerning the use of subcontract labor. Under the proposed rule, which still has to go through a formal rulemaking process, the Department’s Wage and Hour Division will evaluate whether a “subcontractor” should really be considered an employee by using an “economic reality” test.
The proposed rule makes it clear that the Department will make it more difficult for a contractor to classify workers as subcontractors, when in fact the workers are often treated like employees. And that means building owners and managers should take extra care when choosing roofing contractors – a profession that has increasingly relied on “subcontract” labor.
DOL says the economic reality test will look at two “core factors”: the nature and degree of the worker’s control over the work, and the worker’s opportunity for profit and loss based on initiative and/or investment.
In addition, DOL will consider three other factors as “guideposts.” They are: the amount of skill required for the work; the degree of permanence in the working relationship between the worker and the employer; and whether the work is part of an “integrated unit of production.”
DOL goes on to say that these factors will apply regardless of any contractual provisions.
If the “subcontractor” is NOT following the letter and spirit of this proposed rule, there could be problems.
What does this mean for building owners and managers? There could be visits to the jobsite from ICE; from the Wage and Hour Division; from OSHA; and from others – all of which could be incredibly disruptive not only to the work in progress but to the building owner. No building owner wants to be on the evening news because of the actions of an illegal subcontractor.
But if the “subcontractor” really IS following the letter and spirt of this proposed rule, there could be different kinds of problems.
Under the rule, the employer should not be training subcontract workers, so there is no assurance the workers are properly trained for difficult roof installations. The employer should not be supervising the work, so there is no assurance of a proper installation. And many roofing material manufacturers and insurance companies also require roofs to be installed by full-time employees of the contractor in order for coverage to apply. Obviously, no building owner wants to discover, ten years later, that the roof’s warranty is void because of the labor that was used when it was installed.
The only prudent course of action is to use a roofing company that employs its own labor.
Tri-State/Service Roofing & Sheet Metal Group workers are paid top wages and excellent benefits; receive continual training, including safety training; they are covered by workers’ compensation insurance; and they are subject to the company’s disciplinary policies.
Call us for more information about this rule, or to learn more about our full line of roofing and sheet metal services.