Flashings

The government warns against misclassification of workers

Independent contractors have become commonplace in the construction industry. However, federal regulators and others believe some employers may be misclassifying employees as independent contractors.

In an effort to combat misclassification by employers, the Department of Labor's (DOL's) Wage and Hour Division released an Administrator's Interpretation (AI) July 15 to help differentiate employees from independent contractors.

The AI examines the economic realities test commonly used by the courts and broadly interprets the Fair Labor Standards Act's (FLSA's) use of "suffer or permit" as the definition of "employ." It is stated no single economic reality factor should be the determining factor—they should be viewed collectively. Under the new guidance, it will be far more difficult to classify workers as independent contractors.

The ultimate inquiry under the FLSA is whether workers are economically dependent on their employers or truly in business for themselves. If a worker is economically dependent on an employer, he or she is an employee. If a worker is in business for himself or herself, the worker is an independent contractor.

The AI states: "Most workers are employees under the FLSA's broad definitions." The AI squarely focuses on workers being in business for themselves and not economically dependent on employers.

DOL has been clear it aggressively is pursuing businesses that misclassify workers. If employers are found to have misclassified workers, they face civil and criminal penalties, as well as back pay to the workers and unpaid employment taxes to the government. Business owners who use independent contractors should examine the AI and review the nature of their relationships with their workers to ensure they are in compliance with the stronger interpretation of the FLSA.

For more information about DOL's initiative, see "Capitol Hill," page 16, or visit www.dol.gov/whd/workers/misclassification.

ASTM International develops asphalt product standard

ASTM International is developing a standard for two asphalt products that reduce air emissions, save energy and benefit workers by lowering their exposures to asphalt fumes.

The proposed standard, WK45660, originally titled Specification for Low Temperature Application Asphalt Used in Roofing, addresses asphalt with significantly lower application temperatures than most other asphalts. The lower application temperature permits a decrease in the maximum kettle temperature, reducing fumes exposure.

The asphalts covered by the standard are used to install low-slope roof systems and reportedly are high-performance with good aging and high-ductility properties.

For more information about the standard, visit www.astm.org.

PIMA releases R-value report

The Polyisocyanurate Insulation Manufacturers Association (PIMA) has released a report demonstrating the R-value of polyisocyanurate roof insulation shows no significant variation within the average summer and winter temperature ranges across North America.

The report, "Thermal Resistance and Mean Temperature: A Report for Building Owners and Design Professionals," was created in response to recent articles that question the thermal performance of polyisocyanurate roof insulation in colder climates.

According to the report, the primary reason for any reduction in polyisocyanurate roof insulation thermal value in colder climates is related to the use of an unnecessarily low estimate of "mean reference temperature" to calculate R-values in cold climates.

The report also concludes when polyisocyanurate roof insulation R-values are calculated using an adjusted mean reference temperature range indicated by an analysis of North American climate data, the R-values appear to be higher than the values suggested by some recent articles and do not differ significantly from current PIMA member published R-values.

Based on the research findings, PIMA concludes the roof insulation R-values currently published by its members continue to serve as the best guide for building designers who need prescriptive insulation thermal performance information.

"It is unfortunate that the relevant thermal testing range for polyiso roof insulation appears to have been misinterpreted by some members of the thermal insulation and roofing industries," says Jared Blum, PIMA's president. "This new report sets the record straight and provides useful thermal performance information for roofing designers and building owners."

A copy of the report is available at www.polyiso.org.

NRCA member sponsors Wisconsin bill

Rep. Bob Kulp, right, receives the pen Gov. Scott Walker used to sign Kulp's bill into law.

A bill authored and introduced by Rep. Bob Kulp (R-Wis.), owner of NRCA member Kulp's of Stratford, Stratford, Wis., has been signed into Wisconsin state law.

On March 20, Kulp and Sen. Roger Roth (R-Wis.) introduced Assembly Bill 110 to rename two building-related councils. Senate Bill (SB) 86, a companion bill, passed the Senate first and was approved by the House and signed into law by Gov. Scott Walker (R) July 1.

SB 86 renames two Department of Safety and Professional Services (DSPS) advisory trades committees to more accurately reflect the functions of the two councils. SB 86 renames the Dwelling Code Council in DSPS to the Uniform Dwelling Code Council and renames the Building Code Council in DSPS to the Commercial Building Code Council.

Beacon Roofing Supply acquires Roofing Supply Group

Beacon Roofing Supply Inc., Herndon, Va., has announced it has entered into a definitive merger agreement to acquire Roofing Supply Group (RSG), Dallas, in a cash and stock transaction valued at $1.1 billion.

Under the agreement's terms, RSG shareholders will receive about $286 million in cash and $291 million in Beacon Roofing Supply common stock, and Beacon Roofing Supply will refinance $565 million of RSG's net debt. The acquisition is expected to generate about $3.7 billion in revenue and will expand Beacon Roofing Supply to 356 branches in 45 states and six provinces in Canada.

In addition to an expanded geographical footprint, Beacon Roofing Supply will offer more diversified product offerings across its newly acquired and existing branches.

"We long have believed that a combination of Beacon and RSG would be tremendously beneficial to our shareholders, customers and employees," says Robert R. Buck, chairman of Beacon Roofing Supply's board of directors. "This is a momentous event for these two great companies and for the future of the roofing distribution industry."

Buck will remain chairman of the board of directors, and Paul Isabella will continue to serve as president and CEO of the combined company. The transaction is anticipated to close Oct. 1.

ConsensusDocs releases free bond forms

The ConsensusDocs Coalition has made available all its standard construction bond forms for free, including performance, payment and bid bond forms. More specific choices, including subcontractor performance and payment bonds, design-build bonds and warranty bonds, also are offered in the forms.

The bond forms were written and endorsed by more than 40 industry associations and are the only free bond forms specific to design-build that provide an option to cover design liability.

"Fair bond forms, like those issued by ConsensusDocs, are necessary ingredients in achieving a balanced apportionment of construction risks," says Mark McCallum, CEO of the National Association of Surety Bond Producers.

"The importance of bond forms is often overlooked," adds Joanne Brooks, vice president and counsel at The Surety & Fidelity Association of America, a ConsensusDocs Coalition member. "Fair and balanced bonds can facilitate maximum competition, limit contingencies and help ensure project vitality. Providing complimentary access to the ConsensusDocs industry-standard bond forms will help all project participants."

For more information, visit www.consensusdocs.org.

Roofing company officers arrested for OSHA violations

Guillermo Perez and Elma Maldonado, president and vice president of GP Roofing & Construction LLC, Palm Coast, Fla., were arrested in June for failing to comply with a civil contempt order related to Occupational Safety and Health Administration (OSHA) violations.

After conducting nine inspections of GP Roofing & Construction job sites in Florida during 2011 and 2012, OSHA allegedly found multiple willful repeat and serious violations of fall protection, eye and face protection, safe ladder and other standards. Penalties issued against GP Roofing & Construction were upheld in court in August 2013.

On Sept. 12, 2014, the Department of Labor filed a Petition for Civil Contempt against GP Roofing & Construction after the company failed to pay its penalties and continued to violate OSHA standards.

On March 30, 2015, the 11th Circuit Court of Appeals, Middle District of Florida, Jacksonville, held GP Roofing & Construction and its officers in civil contempt, ordering the company to pay outstanding penalties of $195,170, plus interest and fees, and requiring the company to certify it had corrected the violations.

On June 12, 2015, the 11th Circuit Court of Appeals ordered the arrests of Perez and Maldonado after the company failed to comply with the March 30 court order. Perez and Maldonado were taken into custody June 16, 2015, and were held in custody until their hearing June 23, 2015. A final hearing was scheduled for Aug. 26.

"This enforcement action demonstrates that OSHA can and will take action to ensure that standards are followed and that companies like GP Roofing that ignore multiple court orders requiring corrections of violations and payment of penalties will be held accountable," says Kurt Petermeyer, regional administrator for OSHA in Atlanta.

At press time, the findings of the final hearing for Perez and Maldonado were not known. GP Roofing & Construction is not an NRCA member.