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By Staff Report
May. 1, 2017
Risk management. It’s not something you thought you would have to be an expert on when you decided to start your own contracting business, right? The reality is that as a business owner, you have to be part risk manager if you want to survive, much less maximize the fruits of your labor. For construction contractors, the risks of not focusing early on the fundamentals can wreak havoc on the growth and sustainability of otherwise lucrative business models.
One area of potential risk (and therefore vital importance) involves management of the one resource that often makes the difference between the success and failure of a project: your workforce. Basic issues such as recruiting and retaining qualified labor, instilling safe work practices and securing consistent productivity are nearly universal among construction industry employers.
More complex issues involving wage and hour compliance, the nuances of government contracting, and pressure from labor unions are also all too familiar to many contractors. Fortunately, by tackling some core issues early, controlling labor and employment law exposure is not as unattainable as it might seem. Here are the five most important proactive labor and employment law measures you can take to avoid expensive and productivity-sapping labor issues:
There are many, many other specific compliance initiatives that a growing contractor is likely to have to take on; but by taking the basic steps outlined above, contractors can minimize their labor and employment law risks and focus on their true core competencies.
Russell McEwan, co-office managing shareholder of the Newark, New Jersey, office of Littler Mendelson, represents employers in a number of industries, especially construction, in federal and state court litigation, before labor arbitrators, at the bargaining table, and before regulatory agencies. He proactively counsels employers on strategies to promote workplace harmony, strengthen the employment relationship, and minimize the risk of litigation. Comment below or email editors@workforce.com.
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