HR Solutions: Some human resource laws specific to construction industry

Lynne Haggerman is president/owner of Haggerman & Associates, an employment, management training, human resources consulting and outplacement firm.

Construction companies must adhere to numerous building regulations to pass inspections and remain in business. Certain human resource laws also apply to contractors and subcontractors who receive federal government contracts.

The Section 503 Rehabilitation Act applies to contractors obtaining at least a $10,000 contract. The act is enforced by the Office of Federal Contract Compliance Programs.

The law prohibits pay discrimination and discrimination against the disabled. Affirmative action is to be taken to employ and advance qualified disabled persons. Known physical or mental limitations of qualified individuals with disabilities must be accommodated unless doing so would create an undue hardship.

Intimidation or discrimination against anyone filing a complaint or participating in a proceeding is forbidden.

Contractors need to invite individuals to identify themselves on a job application or other pre-employment inquiry.

The documents must be maintained as a separate, confidential record. If the contract exceeds $50,000, Affirmative Action Plans for the disabled will be mandated.

The Vietnam Era Veterans' Readjust-ment Assistance Act addresses contractors with 50 or more staff and contracts of at least $25,000. The act requires affirmative action in hiring and promoting disabled and Vietnam-era veterans. Discrimination is prohibited.

Reasonable accommodations must be made for the physically and mentally disabled unless the contractor is able to prove undue hardship.

Contractors need to invite Vietnam-era veterans and individuals with disabilities to identify themselves. These documents must then be maintained in a separate file. If the contractor has at least 50 employees and a contract of at least $50,000, the act requires the preparation of an Affirmative Action Plan for Vietnam-era veterans that is updated annually.

Job openings paying up to $25,000 need to be listed with the state employment service.

The Davis Bacon Act governs federal construction contracts of at least $2,000. The act directs contractors to pay wages and fringe benefits found by the Labor Secretary to be prevailing in the area. The law is enforced by the Department of Labor, Wage and Hour Division.

The Contract Work Hours and Safety Standards Act applies to contractors receiving more than $100,000 and bans unsanitary, hazardous or dangerous working conditions.

All hours worked over 40 in a workweek must be paid at 1 1/2 times the basic rate of pay. The law is enforced by the Occupational Safety and Health Administration and the Depart-ment of Labor, Wage and Hour Division.

Executive Order 11246 applies to contractors with at least $50,000 in contracts. The order forbids pay discrimination and discrimination due to race, color, creed, national origin or gender. Contractors must take positive, results-oriented steps to eliminate employment barriers to minorities and women.

An EEO-1 report is to be prepared and filed yearly.

An Affirmative Action Plan must be readied for minorities and women and updated annually.

The Affirmative Action Plan is submitted to the Department of Labor, Office of Federal Contract Compliance Programs during routine, randomly conducted compliance reviews. Unless under an audit, the company may dispose of the Affirmative Action Plan for the prior year.

Contractors must ask minorities and women to self-identify, and then maintain the records in a separate file. Responsibility for compliance needs to be assigned to one person within the organization.

Failure to comply with any of these laws may result in financial penalties, the loss of a contract, further record-keeping requirements and being banned from bidding additional contracts for a certain period of time. Accordingly, conduct a human resource audit to ensure compliance.