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Legislative Issues Related to Workers’ Compensation in the Construction Industry

Legislative Issues Related to Workers’ Compensation in the Construction Industry

Lawmakers and construction business owners don’t always see eye to eye, which is evident when perusing the litany of ongoing legislative issues affecting the construction industry. When new legislation dealing with the construction industry is passed, contractors are often baffled by the decisions being made by those in power. As a construction professional, you might find yourself wondering:

  • Did lawmakers even consult construction business owners and professionals prior to enacting new legislation?
  • Is there clear evidence that the changes being implemented will actually help those who serve the industry?
  • Did they calculate the financial burden these changes place on the backs of contractors?
  • Are the entities backing these initiatives working to undermine the construction industry?

These are all fair questions, but contractors might not like what they find when they seek answers. If you feel like your voice has been silenced by politicians, one of the best ways to protect your interests is to partner with a construction lobbyist from Cotney Construction Lobbying. Our team of experienced lobbyists works exclusively with the construction industry to enact positive change on all levels. In this article, we’ll discuss two ongoing legislative issues related to workers’ compensation that could threaten the success of the construction industry.

Workers’ Compensation

Rates have been on the decline for a while now, which means there’s little chance of workers’ compensation legislation finding footing in 2020. That said, there’s likely to be a handful of bills filed, even if they’re only intended to spur discussion in support of expanding workers’ compensation coverage. Of course, if this were to happen, construction business owners would face significant financial hurdles.

Professional Employer Organization (PEO)

A professional employer organization (PEO), also referred to as an employee leasing company, acts as the official employer for workers that can be “leased” by construction businesses to provide labor. This system leads to workers’ compensation insurance coverage gaps as the PEO is responsible for handling payroll and workers’ compensation coverage. However, when a contractor fails to report an employee to the PEO, and the employee is injured, the PEO can profit if the employee was not reported since liability will for the claim will be shifted to the contractor. Across all industries, contractors are one of the only employers that must deal with this issue. Construction lobbyists are attempting to close this loophole so that PEOs and their insurance carriers are responsible for any injuries to workers leased to employers.

If you would like to speak with a construction industry advocate from Cotney Construction Lobbying, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Cotney Construction Lobbying, LLC does not provide legal services and any statements made on this website are intended to apply only to non-legal, lobbying services.