Why Managing Compliance is a Construction HR Priority

Employers in any line of business know they need to collect and store employee documents in a secure manner. Improper storage or incomplete documentation may lead to fines, lawsuits and loss of employee trust. This is especially true for construction HR departments as multiple layers of compliance requirements need to be met on every construction project. For a construction company, it can be difficult to keep track of these different forms and requirements laid out by the government—especially when HR managers are focused on finding skilled workers amid the ongoing construction labor shortage. But don’t worry, we’re here to help!

Contractors need to pay special attention to the following six government requirements that all HR departments should be aware of:

1. Onboarding documentation

2. OFCCP

3. EEO

4. ACA 1094

5. OSHA

6. MSHA

The 6 Keys to HR Compliance

1. Onboarding Documentation Requirements

The I-9 form is the primary legal document employers need to provide when onboarding new employees. This form will verify the new employee’s legal ability to work in the United States, and outline the identification documents needed by the HR department before the hiring process can be completed. The expiration dates of these documents must be tracked by the company, and employees must provide new forms of identification when their old documents expire.

Federal regulation requires that companies retain all employee I-9s for at least three years after their hire date, or one year after their employment ends, whichever is later. These forms should be easily accessible in the case of inspection. Regardless of how the I-9s are stored, if requested, they must be provided to government officials within three days.

A W-4 is also required for new employee onboarding. This will ensure that all tax information is gathered and up to date. Both new and existing employees should have easy access to their W-4s in order to update their tax information as needed. Employers must keep W-4s on file for at least four years after the date that employment tax is due or paid, whichever is later.

2. Complying with OFCCP (Office of Federal Contract Compliance Programs)

Under OFCCP, all contractors and subcontractors who conduct business with the government in excess of $10,000 cannot discriminate against employees based on their race, color, religion, sex or national origin. Additionally, contractors are expected to make an effort to employ individuals with disabilities and veterans. Hiring data should be reported frequently and kept on hand in the case of an audit.

3. Complying with EEOC (Equal Employment Opportunity Commission)

Businesses with at least 100 employees, and federal contractors with at least 50 employees and contracts of $50,000 or more, must file an EEO-1 form. This identifies the number of employees on each job site by job category, race, sex and ethnicity. Labor unions that work a minimum of 20 weeks a year must also comply with EEOC regulations.

The EEOC announced in September of 2019 that it would be retiring Component 2, pay data reporting, of this requirement; however, the State of California has passed legislation mandating that Component 2 still be reported to the state.

4. Complying with ACA 1094 (Affordable Care Act)

Construction companies with 50 or more full-time employees are required to comply with the Affordable Care Act Employer Mandate. This ensures that employers provide affordable health coverage to their employees and file 1094 information returns to the IRS. When submitting the annual ACA information returns, the IRS offers three affordability safe harbors that employers may claim, including Rate of Pay, W-2 and Federal Poverty Line.

5. Complying with OSHA (Occupational Safety and Health Administration)

Under OSHA laws, all employers with 10 or more full-time employees are required to keep a daily log of all work-related injuries or illnesses. These records must be kept onsite for at least five years, and a summary of the previous year’s injuries and illnesses must be posted each spring. This information must also be easily accessible to current or former employees if requested. Companies with 250 or more employees are only required to electronically submit information from the OSHA Form 300A.

6. Complying with MSHA (Mine Safety and Health Administration)

Both new and current miners are required to complete specialized safety training to recognize health and safety hazards, minimize accidents and injuries, and protect themselves in emergency situations. The training is required quarterly and it is critical for employers to track training dates and expirations.