Construction Industry Fair Play Act Overview

March 26, 2012 — 1,355 views  

Many different professionals are called in to work on a construction project. Carpenters and woodworking experts create frames and foundations, sheetrock specialists spackle walls and gaps and tile masons and flooring providers install ground surfaces over cement. These people used to be independently contracted by a supervisor or manager, but the construction industry fair play act has changed the traditional terms of a project.

Essentially, the law makes it more difficult for an employer to designate workers as independent contractors. This exists for a number of reasons, mainly to deter insurance and tax fraud.

Under the terms of the act, every construction worker is designated as an employee underneath the managing company unless certain restrictions are met. Basically, only specialized experts performing tasks outside of normal construction can be viewed as independent. For example, a swimming pool builder might be considered as such a worker.

Unfortunately, if employers violate the terms mandated by the construction industry fair play act, they are subject to hefty fines and potential jail time based on the number of wrongly classified employees. A contracting company should make sure to complete thorough research and examine the act's terms before hiring independent workers.