News Summary
The 2025 Construction Conference highlighted critical issues in the construction industry, emphasizing risk management, legal changes, and industry challenges. Experts discussed noncompete agreements, overtime pay thresholds, and new regulations from OSHA and the NLRB. The event underscored the necessity for builders to collaborate with regulatory bodies while addressing safety and affordability in housing development, especially in light of proposed legislative changes.
Charlotte, North Carolina – The 2025 Construction Conference recently shed light on critical developments impacting the construction industry, focusing on risk management, legal modifications, and addressing ongoing industry challenges. A session led by experts aimed at equipping construction business leaders with essential tools to mitigate risks and enhance their competitive positioning in a rapidly evolving landscape.
Emily Massey, a Board Certified Specialist in Employment Law from North Carolina, reiterated that noncompete agreements remain enforceable, contrasting the frequently held belief that they are obsolete. She encouraged those in attendance to routinely consult with legal counsel regarding non-solicitation and noncompete agreements to ensure they remain compliant with current laws. Furthermore, the current minimum salary threshold for classifying employees as exempt from overtime pay stands at $684 per week, equating to approximately $35,568 annually. This threshold is subject to ongoing revisions, and businesses are advised to consult with HR experts to navigate the complexity of evolving overtime exemption regulations.
Potential changes to overtime rules are anticipated as the Trump administration signals a willingness to modify existing policies, underscoring the need for vigilance among employers. Participants were also cautioned about the risks surrounding the misclassification of independent contractors, a determination that hinges on the extent of control employers exert over these individuals.
The National Labor Relations Board (NLRB) has seen increased activity during the Biden administration, with predictions about the removal of its General Counsel realized in the current political climate. Additionally, the Occupational Safety and Health Administration (OSHA) is poised to implement a proposal requiring employers to prevent heat-related hazards in the workplace. Public hearings are scheduled for June 16, 2025, where OSHA is expected to disclose mandates for frequent breaks and hydration when the heat index surpasses 80°F. Employers would need to monitor for heat illness at 90°F, incorporating structured breaks every two hours.
Another significant regulatory change is outlined in Executive Order 14173, enacted on January 31, 2025, which prohibits illegal diversity, equity, and inclusion (DEI) policies in federal agencies and contractors. This order aims for compliance with Title VII while not categorically barring DEI initiatives.
Luke Tompkins, a noted commercial litigation attorney, introduced a crucial risk management tool known as the Notice of Contract. This document must be conspicuously posted at job sites and filed within 30 days of the issuance of a building permit in order to be effective. By filing a Notice of Contract, general contractors transfer the burden onto subcontractors to preserve their claim-filing rights, thereby enhancing protections against potential liens.
Additionally, discussions at the conference about commercial general liability (CGL) insurance elucidated the limitations and exclusions inherent in such policies. CGL insurance does not cover inferior workmanship or repairs already outlined in the initial contractor agreement, and contractors are encouraged to strengthen their risk management strategies by including indemnification clauses within contracts. They should also require to be listed as additional insureds on the insurance policies held by subcontractors.
Miscommunication with insurers can result in denied coverage, prompting contractors to exercise caution in managing their representations during disputes and when responding to licensing boards. Participants expressed concerns regarding potential legislative changes that could affect housing construction and safety standards, particularly in North Carolina. There is apprehension that legislative proposals aiming to lower construction regulations and inspections may inadvertently heighten safety risks, presenting concerns over public safety amidst discussions of affordability.
The session underscored the necessity for collaboration among builders, local governments, and regulatory bodies to foster safe and affordable housing developments. As the industry grapples with these evolving challenges, the insights derived from the 2025 Construction Conference are expected to significantly inform future strategies for construction business leaders.
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Additional Resources
- Ward and Smith: Construction Conversations Legal Update
- JD Supra: The Site Report on Construction Law
- WBTV: New North Carolina Laws Could Make Homes Less Safe
- National Law Review: House Bill 47 on Building Codes
- Mondaq: Building Momentum at the 2025 Construction Conference
- Wikipedia: Construction
- Google Search: Construction Law
- Google Scholar: Construction Safety Regulations
- Encyclopedia Britannica: Construction Industry
- Google News: North Carolina Construction Laws
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