People are at the heart of T.W. Frierson. We work hard because we’re accountable to one another. We don’t just build buildings, we build careers and create meaningful relationships — we treat others like family.
We’re responsible for the experience we create. While some people prefer to “roll out the red carpet” for a select few, we like to clear the sidewalk for everyone.
We always go the extra mile to show appreciation and gratitude. Small gestures, like delivering 4am doughnuts for an early morning concrete pour, make a big di erence.
“That’s not my job” isn’t in our vocabulary. Each person does what it takes to get the job done right. Regardless of rank or tenure, if the pit needs digging, you dig the pit.
We strive to do the job right on the first try. And when a mistake happens, even if it could go unnoticed, we owe it to our team to tear out the concrete and fix it.
Oct 3: Coffee with Contractors: Secretary of State Tre Hargett on Election Integrity
Oct 9: CPR & First Aid Training
Oct 10: East TN- Construction 101: Contracts & Insurances
Oct 12: Florida @ Tennessee EL Tailgate
Oct 15: CPR & First Aid Training
Oct 24: East TN- Construction 101: Budget Management
Oct 30: EL Pumpkin Carving
Nov 7: East TN- Construction 101: Project Scheduling
Dec 6: Excellence in Construction & Safety Awards
Dec 12: Middle Emerging Leaders Holiday Social
Dec 12: East Emerging Leaders Holiday Social
instagram/abcgreatertn
President and Publisher: Clay Crownover Managing Editor: Clay Crowno ver
Editor: Alexandria Lang
Art Director: Clay Crownover Printing/Mailing: Minuteman Press
Special Thanks to Ford Photographs- fordphotographs.com
TENNESSEE
President/CEO: Clay Crownover- clayc@abctn.org
Director of Membership & Events- Alexandria Lang alang@abctn.org
Director of Education & Safety: Reed Hendricks rhendricks@abctn.org
East Tennessee Regional Education Manager: George Lokken, glokken@abctn.org
East Tennssee Regional Development Director: Madison Cotlar, mcotlar@abctn.org
2024 Executive Committee
Bryan Hay (Chair) SKANSKA
Steven Bishop (Vice-Chair) Brasfield & Gorrie
Jamie Holmes (Secretary) T.W. Frierson Contractor
Justin Marcus (Immediate Past Chair) JOSEPH Construction
2024 Board of Directors
Tyler Baldridge
BELL Construction
Andy Farmer Rodefer Moss
Thomas Ford Massey Electric
Steve Garner Blount Excavating
Thomas Hall
Sherrard, Roe, Voigt, Harbison
Kirk Johnson Stowers Cat Machinery
Griff Irby The Carter Group
Brent Neal F.E. Neal & Co.
Richard Smith
Smith & Cashion
Casin Swann Pavement Restorations
Michael Walker, Jr. Walker Electric
John Warner
ABEC Electric
Roger White
Rackley Roofing
Matthew Wheeler
G&P Masonry
CHAIRMAN OF THE BOARD
As we look back on the past year at the ABC Greater Tennessee Chapter, our merit shop construction industry has made tremendous strides in both strengthening the construction industry and setting new benchmarks for our members and our Construction Trades Academy. From high school student outreach to political advocacy, our efforts have been wide-reaching, impactful, and designed to meet the evolving needs of the industry in the State of Tennessee. I am excited to share key highlights from this year and encourage you to continue supporting our mission as we shape the future together.
High School Recruitment – Investing in Tomorrow’s Workforce
One of our top priorities this year was to engage with the next generation of construction professionals. Our outreach efforts took us to a few high schools in the Nashville and Knoxville regions, where we hosted or participated in hands-on workshops, career fairs, and informational sessions. A standout moment was when over 100 high school students attended our informational open house in March. These events have not only sparked interest in our trade but are laying the foundation for a stronger, more skilled future workforce and were a contributing factor to our largest first year class in a decade.
Building the Future – Investment in Shell Space Buildout
We are also proud to announce significant investments in the buildout of our shell space, expanding our school by another 14,000 sq. ft. This development will allow us to accommodate more training programs, foster innovation, and offer even more training opportunities in the future. By enhancing our facilities, we ensure that the ABC Greater Tennessee Chapter remains a hub for cutting-edge training and professional development, setting our members up for continued success and training the next generation workforce in the Middle and East Tennessee regions.
Innovative CTA Solutions to Meet Industry Demands
To better serve the unique and changing needs of our industry, we have made several innovations in how we offer training through the Construction Trades Academy (CTA):
Distance Learning: Recognizing the importance of flexibility, we have expanded our distance learning options to ensure that more professionals, especially those working in remote locations, can access high-quality education.
LETTER FROM THE CHAIRMAN OF THE BOARD
Compressed Learning Calendar: For members with specific needs, we’ve tailored accelerated learning calendars, allowing for quick and efficient upskilling to meet urgent project demands.
These improvements demonstrate our commitment to staying ahead of industry trends and ensuring our members have the best resources available.
Political Advocacy – Growing Our PAC
Connecting and Growing – Events for Professional and Business Development
Throughout this fiscal year, we hosted over 90 events in East and Middle designed to foster connections and offer professional and business development opportunities for our members, including our first ever BuildFree TN awards to raise funds for our academy and celebrate the graduation of our trades academy graduates. From networking socials to workshops, each event was crafted to help our members grow both personally and professionally, solidifying the ABC Greater Tennessee Chapter as a cornerstone of our professional community. We are built on building merit shop relationships, and this year showed even greater emphasis on high quality opportunities for our members to get a return on their investment in the chapter.
Advocacy remains a vital part of our mission, and our ABC Political Action Committee (PAC) and legislative team has continued to grow, thanks in part to the success of our annual Casino Night fundraiser, now in its third year. Over the last three years, we have raised almost $30,000 to support political initiatives that protect and advance the interests of our industry. Our PAC has reached heights of over $150,000 in 2024, ranking our chapter in the Top 25 of most powerful political action committees in the state. Additionally, we have taken a proactive stance on local legislation, such as the Metro Safety board legislation in Nashville, and by building even more relationships with legislators in the ever-evolving landscape of the Tennessee General Assembly. While these activities benefit the industry, and non-ABC members alike, our membership strength is ultimately the deciding factor in influencing legislation at the state and local levels and sets us apart from other associations in Tennessee.
Partnerships and Leadership
LETTER FROM THE CHAIRMAN OF THE BOARD
Over the course of the last year, we have partnered with and provided leadership in many outstanding organizations. In Knoxville, we signed and partnered with Building Traditions to foster recruitment of new tradesman in East Tennessee. We held a pre-apprenticeship program, as well, with the Boys and Girls Club of East Tennessee and we became a member of the Tennessee Builders Alliance, tasked with the construction of the new Tennessee Titans stadium. Not to be forgotten, but we remain a Founding Partner in the Tennessee Chamber’s BePro BeProud program and are well represented as part of the GoBuild Tennessee board.
In comparison to other ABC Chapters nationwide, our Greater Tennessee Chapter continues to outperform in vital areas. Our performance scorecard showcases excellence in training completions, member engagement, and industry influence. We are proud of how our chapter measures up, particularly in delivering top-tier training and development opportunities. In closing, we are proud of all that we’ve accomplished together and invite you to continue supporting our chapter as we look ahead to even greater success. Let’s keep the momentum going!
For the Merit Shop,
Bryan Hay 2024 ABC Greater Tennessee Board Chairman SKANSKA USA
National Performance Highlights – Scorecard Overview
ABC STAFF SPOTLIGHT
ALEXANDRIA LANG
Director of Membership & Events
Q: Tell us about yourself?
This past April I married my high school sweetheart on a gorgeous private beach in Mexico. We have two children, ages 13 and 10. They are both active in numerous school activities/sports and definitely keep us busy.
Q: How long have you been with ABC?
About 5 and a half years.
Q: What is your favorite tv show/movie? Anything crime. Criminal Minds, CSI: Miami, First 48, etc.
Q: What is your main responsibility at ABC?
As the Director of Membership and Events, my primary focus is the development of the chapter through member recruitment, retention and engagement. It is my job to make sure members find value in the services we provide.
Q: What is your favorite part of working at ABC? I love that at ABC, we always have so much going on. While the day-to-day operations remain somewhat the same, there is a lot of diversity. From Golf Tournaments to Casino Night, etc. There is always something new and exciting!
Q: Who is your favorite singer/songwriter/ band? I don't necessarily have a favorite singer more so genre2000s Hip Hop/R&B.
Q: What hobbies do you have?
If you don't know by now, I am a huge Disney Adult. I visit Disney quite frequently, more than I should according to my husband. I love exploring the World Showcase at Epcot with an Avocado Margarita in hand. If you have an upcoming trip and need tips, I'm your girl.
Q: What is your favorite ABC event? Our annual Excellence in Construction awards ceremony is my absolute favorite event. This event showcases the beautiful projects built by our members throughout the Nation, including both specialty and general contractors. It is a night of celebration and togetherness for the entire industry.
Q: What is your favorite sports team? Go Gators!
Q: What do you enjoy most in your free time?
Spending time with my family. We love to travel and outside of Disney, we enjoy cruising. We've been to many different ports to include Aruba, Cozumel, Nassau, Honduras, Belize, Jamacia, Costa Maya, Grand Cayman and the Dominican Republic.
Q: Do you have any pets?
I have two dogs, a Golden RetrieverKevin and a Golden/Lab Mix - Comet. My husband has two cats, but I'm not a cat person.
A WORKER’S PERSPECTIVE: The Rise of Artificial Intelligence
in the construction industry
By: Patrick Scarpati, ABC Director, Construction Technology & Innovation
In recent years, artificial intelligence has revolutionized many industries, and construction is no exception. As a construction worker, you might wonder how AI impacts your daily tasks and the overall workflow on jobsites. The integration of AI in construction promises to enhance safety, improve efficiency, streamline project management and much more.
Enhancing Safety and Efficiency
Safety is paramount in construction, and AI is playing a crucial role in mitigating risks and enhancing site safety. One of the most significant advancements is the use of AI-powered computer vision technology. This technology can analyze real-time video feeds from job sites to detect potential safety hazards, such as workers not wearing proper protective equipment or unauthorized personnel entering restricted areas. By identifying these risks early, supervisors can take immediate action to prevent accidents.
Moreover, AI-driven predictive analytics can forecast potential safety incidents by analyzing historical data and identifying patterns that precede accidents. This proactive approach allows construction teams to implement preventive measures, reducing the likelihood of accidents and injuries. For instance, AI can analyze weather data to predict hazardous conditions like heavy rain or extreme heat, enabling workers to adjust their schedules accordingly.
Autonomous equipment is another area where AI is making a significant impact. AI-powered machinery, such as drones and self-driving construction vehicles, can perform tasks with greater precision and efficiency than their human counterparts. Drones equipped with AI can conduct site inspections, monitor progress and even assist in surveying, reducing the need for workers to perform dangerous tasks at heights or in hazardous environments.
Improving Project Management
Effective project management is critical to the success of any construction project. AI-driven project management software is revolutionizing the way construction projects are planned, executed and monitored. These advanced systems can handle complex tasks such as scheduling, resource allocation and budget management, all while providing real-time updates to project managers.
One of the key benefits of AI in project management is its ability to optimize resource allocation. AI can analyze various factors, including workforce availability, equipment usage and materials supply, to ensure that resources are utilized efficiently. This optimization minimizes downtime and ensures that projects stay on schedule.
The Rise of Artificial Intelligence
AI also enhances communication and collaboration among project stakeholders. AI-powered platforms can centralize project data, making it accessible to all team members, from architects and engineers to on-site workers. This transparency fosters better decision-making and reduces the risk of miscommunication, which can lead to costly delays.
Furthermore, AI can assist in tracking project progress and identifying potential bottlenecks. By analyzing data from sensors and IoT (Internet of Things) devices installed on construction sites, AI can provide real-time insights into the status of various tasks. This allows project managers to identify issues early and take corrective actions, ensuring that projects are completed on time and within budget.
Streamlining Preconstruction
The preconstruction phase is crucial for setting the foundation of a successful project. AI is transforming this phase by providing valuable insights and improving decision-making processes. AI-powered tools can analyze vast amounts of data from previous projects, industry benchmarks and market trends to assist in project planning and design development.
One of the most significant contributions of AI in preconstruction is its ability to generate cost estimates. By analyzing historical cost data and considering factors such as labor rates, materials prices and project complexity, AI can provide precise cost predictions. This accuracy helps project owners make informed decisions and allocate budgets effectively.
AI can also optimize construction schedules by identifying the most efficient sequencing of tasks. By analyzing dependencies and constraints, AI algorithms can create realistic and achievable timelines, reducing the risk of delays. This optimization is particularly valuable for large-scale projects with numerous interdependent activities. Design development is another area where AI is making a significant impact. AI-powered design software can generate multiple design options based on specified parameters, allowing architects and engineers to explore various possibilities quickly. This iterative process helps identify the most efficient and cost-effective designs, ensuring that projects meet both functional and aesthetic requirements.
Company Implementation
Creating an AI employee usage policy involves several steps to ensure responsible and ethical implementation. Start by defining the scope and purpose of AI within the company, detailing specific applications and boundaries. Include data privacy and security measures to protect sensitive information and ensure compliance.
Next, outline consent protocols, ensuring employees are informed about AI monitoring and usage. Develop training programs to educate employees on AI tools and their implications. Establish clear accountability structures, specifying roles and responsibilities related to AI deployment and oversight. Regular audits and reviews should be conducted to assess AI's impact and adherence to the policy. Finally, include a feedback mechanism for employees to report concerns or suggest improvements. This comprehensive approach ensures ethical AI usage, safeguarding both company interests and employee rights.
The Future of AI in Construction
The adoption of AI in construction is still in its early stages, but its potential is immense. As AI technologies continue to evolve, they will become more integrated into the daily operations of construction sites, offering even greater benefits. For construction workers, embracing AI means staying ahead of industry trends and gaining a competitive edge in a rapidly changing landscape.
In the future, AI could revolutionize how we approach construction projects, from initial planning to final execution. Advanced AI systems may be able to create fully automated construction processes, where robots and autonomous machinery handle most
The Rise of Artificial Intelligence
tasks, reducing the need for manual labor. While this may raise concerns about job displacement, it also presents opportunities for workers to upskill and take on more specialized roles in managing and maintaining these advanced systems.
Moreover, AI has the potential to drive sustainability in construction. By optimizing resource usage and reducing waste, AI can contribute to more environmentally friendly construction practices. For example, AI algorithms can analyze energy consumption data to identify opportunities for energy savings, leading to greener and more sustainable buildings. Artificial Intelligence is reshaping the construction industry, offering numerous benefits for workers and project stakeholders alike. From enhancing safety and efficiency on jobsites to improving project management and streamlining preconstruction, AI is proving to be a valuable asset. As construction workers, understanding and embracing AI technologies can lead to safer, more efficient and more successful projects.
The future of AI in construction is promising, with advancements that could revolutionize the industry. By staying informed about AI developments and adopting these technologies, construction workers can ensure they are well-prepared for the future and continue to thrive in a rapidly evolving industry.
For a more comprehensive overview of AI’s role in construction and to explore the latest AI tools and resources, visit the ABC AI Resource Guide by following the QR code below or typing in ABC.org/AI.
ABC creates the conditions for construction companies to innovate, differentiate, and attract and educate their top talent, ultimately to win and deliver that work safely, ethically and profitably for the betterment of the communities in which they work. ABC continues to invest in helping its members select and understand high-quality construction technology available to them through its Tech Report, Tech Alliance, Tech Marketplace and Safety Tech Guide.
Steven ABC Greater Tennessee’s Incoming 2025 Chairman BISHOP
In October of 2024, Brasfield & Gorrie’s Steven Bishop will become ABC Greater Tennessee’s 54th Chairman of the Board. A native of Franklin, Tennessee, Steven graduated from Auburn University in 2008 with a degree in Building Science and began his career with Brasfield & Gorrie, where he remains to this day. Steven began his career in preconstruction and now serves as a Cheif Preconstruction Manager in Nashville. He has been married for 15 years and has 3 wonderful children. Join us as we sit down with Steven and discuss his career and his vision for ABC Greater Tennessee in 2025.
Q: What is most important to you for ABC Greater Tennessee as a chapter overall?
The most important thing to me is to make sure the decisions we make this year are sustainable for the future success of the organization. The trades academy is so important to our future success, and I am very excited about the expansion of that program.
Q: What do you hope to achieve in 2025 as the ABC Greater Tennessee Chairman?
Nothing will be achieved by me alone. We have an amazing staff and board members who have helped ABC Greater Tennessee reach new levels over the past few years. We have more trades academy students than ever, high participation from our member companies, and new members joining monthly. That is a testament to those that came before me, and my goal is to continue that momentum. I want to help eliminate any roadblocks to our continued growth and success as an organization and make sure we continue to put the organization’s best interest first.
Q: How do you define success?
There are obvious ways to define success when you set trackable goals. Beyond that, I define success for myself by helping create an environment where individuals want to show up, work hard, and experience personal growth along the way.
Steven BISHOP
Fast Facts
How long have you served on the ABC Board of Directors?
2025 will be my 5th year serving on the board
What is your favorite ABC event?
EIC (Excellence in Construction Awards). It is a chance to celebrate all the hard work our member companies put into their projects and safety throughout the year.
What is your favorite movie/tv show?
The Office
Who is your favorite singer/songwriter/band?
The current playlist has some King & Country, Noah Kahan, Benson Boone, and Forrest Frank on it.
Who is your favorite sports team?
Auburn Football, it has been a tough few years!
What are your hobbies?
I like to play golf, work out, and spending time outside with my family.
What is a fun fact about yourself?
I married my high school sweetheart
What is your favorite quote/poem?
Q: You served as Co-Chair of the first Building Committee for the Trades Academy, what does it mean to you to be Chairman in the first year of the new phase II expansion?
Moving to our current building was a huge risk for our chapter at the time and was a decision that was not taken lightly, but it was something that had to be done to help the organization grow. It is very rewarding to see how that risk has paid off and how the Trades Academy has grown in such a short time. Having a qualified labor force is so important to all our member companies and I am so proud to be a part of that continued growth.
Q:
Q:
Who is a person you considered a role model early in your life and/or career? How and why does this person impact your life?
My dad has made a huge impact on my life and career. He spent over 40 years in the construction industry and has always been someone to bounce ideas off. He has experienced all that the industry has to offer and provides great advice when I need it.
What is the most important characteristic that every leader should possess?
Being able to make a decision is a characteristic that is vital for every leader. I’ve seen some leaders get too focused on the past and spend too much time talking about the problem at hand vs. spending their time focusing on the path forward. I think it is good to spend time learning from our past, but the best leaders make decisions based on the facts at hand and help move the team forward.
Q: What advice would you give for future ABC
leaders?
“Would I rather be feared or loved?
Easy. Both. I want people to be afraid of how much they love me.” –Michael Scott
I think the more you put into something, the more you will get out of it. That isn’t the reason to serve in a leadership position, but it is a positive byproduct of giving your time. It is also crucial to consider the association’s interests above all else when making decisions.
ABC Greater Tennessee University of Tennessee Student Chapter Ambassador: Seth Parrott
Seth Parrott, a junior at the University of Tennessee, Knoxville, is forging a promising career in construction management. Set to graduate in 2025 with a degree in Construction Science and Management from the Herbert College of Agriculture, Seth has consistently demonstrated academic excellence. With a 3.87 GPA, he’s earned Summa Cum Laude honors and made the Dean’s List from Fall 2022 to Spring 2024. His minor in Business Administration from the University of Tennessee Haslam College of Business further strengthens his understanding of the industry’s financial and operational aspects.
Seth’s hands-on experience spans internships with ABC Greater Tennessee member BL Harbert International in Charleston, South Carolina, where he gained real-world insights into construction management. From assisting project managers with design coordination to overseeing subcontractors and ensuring seamless project execution, he developed valuable skills over two summers. Seth also sharpened his expertise in integrating BIM technology and optimizing workflow communication to meet project goals efficiently.
Balancing school with work, Seth has held part-time roles with Cate Property Services and McSpadden Inc., where he honed his skills in framing, siding, and project management. His leadership as a parking-lot supervisor for Tennessee Smokies Baseball further demonstrates his organizational abilities and teamwork.
Outside the classroom and job sites, Seth is an avid outdoorsman and passionate conservationist. A member of the National Wild Turkey Federation, he enjoys contributing to conservation efforts across East Tennessee, making him a well-rounded individual dedicated to improving both the environment and the world of construction.
MEMBER SUBMISSION
INTRODUCING T.W. FRIERSON’S WORK-BASED LEARNING PROGRAM FOR HIGH SCHOOL STUDENTS
by: T.W. Frierson staff
At T.W. Frierson, we have identified the exploration of new talent pipelines as a key strategic objective. Career & Technical Education (CTE) partnerships with local high schools are the backbone of what we aim to accomplish through work-based learning. By actively engaging with local high schools through classroom visits, demonstrations, bringing in field leaders for hands-on experiences, and taking students on field trips to our sites, we strive to keep students interested in the trades and develop relationships with them early on.
We are excited to announce the launch of T.W. Frierson’s work-based learning program, a significant step in providing hands-on construction experience to high school students. This program offers students studying construction the chance to work full-time on one of our sites for six weeks during the summer, earning course credit through their high school.
This program is designed to offer students a unique opportunity to evaluate their career options before graduation. By gaining real-world experience on our construction sites, students can make more informed decisions about their future career paths. For T.W. Frierson, this initiative provides an excellent opportunity to identify future talent early in the recruiting process, ensuring we have a pipeline of skilled workers ready to join our team.
The first iteration of our work-based learning program is currently focused on one county. However, we have ambitious plans to grow the program to include multiple counties in the future. Our long-term vision includes developing comprehensive apprenticeship programs, with the work-based learning initiative serving as a feeder into these apprenticeships. This structured approach will ensure a seamless transition for students from classroom learning to practical, on-the-job training.
Investing in the education and training of young talent is not just about supporting their career growth; it is also about ensuring a skilled and prepared workforce for the future. By providing these valuable experiences, we are helping to bridge the gap between education and industry, creating a win-win situation for students and our company.
We look forward to seeing the positive impact this program will have on both the students and T.W. Frierson. Through initiatives like this, we are committed to building a stronger, more skilled workforce that can meet the challenges of tomorrow’s construction industry. Together, we can create a brighter future for our community and our industry.
Reed Henricks joins ABC Greater Tennessee as Director of Education & Safety
Associated Builders and Contractors (ABC) of Greater Tennessee is pleased to announce the q appointment of Reed Henricks as the new Director of Education and Safety. With an impressive 30 years of experience in the construction industry, Reed brings a wealth of knowledge and expertise to ABC, further strengthening our commitment to workforce development and safety standards.
Most recently, Reed served for six years with the Merit Apprenticeship Alliance in East Islip, NY. In this role, Reed was responsible for training and mentoring apprentices, ensuring that the next generation of construction professionals were equipped with the technical and safety skills necessary to excel in the industry. As an OSHA-certified professional and a NCCER-certified instructor, Reed has consistently demonstrated a commitment to maintaining the highest safety standards, both in the classroom and on the job site.
In addition to his technical qualifications, Reed is known for his dedication to teamwork, problem-solving, and collaboration with key stakeholders to develop and implement safety protocols. His ability to foster a culture of safety and efficiency aligns perfectly with ABC’s mission to provide safe, high-quality construction education.
"I am excited to join ABC and contribute to its goals of advancing workforce development and safety," said Mr. Hendricks. "I look forward to working with the team to further enhance our training programs and ensure that safety remains a top priority across all aspects of ABC’s training programs."
Please join us in welcoming Reed Hendricks to the ABC family. His vast experience and passion for safety and education will be invaluable as we continue to grow and evolve during the next phase of our expansion.
Reed can be reached in the Nashville office at 615-399-8323 or email at rhendricks@abctn.org.
ABC Greater Tennessee Sees Record Academy Enrollment
ABC Greater Tennessee proudly announces the largest Construction Trades Academy class in over a decade. The fall apprenticeship program will have 441 students, with a record number of 159 first-year students, who will learn integral trades of the construction industry over four years while working for their employer. Students not employed will be placed in jobs before entering. Skills taught include electrical, carpentry, plumbing, and HVAC.
“Associated Builders and Contractors is doing its part to educate craft and trades professionals through our Construction Trades Academy,” said Clayton F. Crownover President & CEO of Associated Builders and Contractors (ABC) Greater Tennessee. “This fall we are thrilled with the largest number of first-year applications we have ever received, showing that interest in learning important skills in our industry is top-of-mind, and we look forward to working with these students. This program is a unique opportunity, providing a variety of courses and real-life experiences, and will deliver highly sought after skilled workers to our booming construction industry. This increase in interest to join the open-shop construction industry in Tennessee is a true testament to the leadership of our company members and their employees.”
The ABC Greater Tennessee Construction Trades Academy delivers programs that equip craft professionals with the knowledge and skills they need to improve their productivity, advance their careers, and create longevity in the construction field. The academy covers various topics and skill trades, including mechanical and electrical, workplace safety, and personal responsibility. Upon completion of all requirements, each student is certified through DOL accredited curriculum. If a student leaves the greater Tennessee area, the education is transferable, portable, and recognized throughout the nation.
“As Nashville embarks on some of its largest and most transformational projects including the transformation of the East Bank over the next decade, nurturing homegrown skilled trade talent to take full advantage of these opportunities is critical,” said Bryan Hay, Vice President of Business Development at Skanska and Board Chair of ABC of Greater Tennessee. “This ABC apprenticeship program will produce skilled, and well-trained employees that can have a long and fruitful career in construction. We hope to see it continue to grow every class.”
RAISING THE THRESHOLD:
An FLSA Refresher
FLSA salary thresholds Are Increasing. But do your salaried employees meet the other requirements of an FLSA exemption?
By: Ryan Shannon, Lewis Thomason
On July 1 of this year, a new standard salary threshold for exempt employees under the Fair Labor Standards Act (FLSA) went into effect. Previously, an employee who was otherwise exempt under the FLSA must have had a minimal salary of $684 per week or $35,568 per year. With the July 1 change, that minimum salary has risen to $844 per week or $43,888 per year. Additionally, the salary threshold is set to rise again on January 1, 2025. Once the new year begins, FLSA exempt employees must have a minimum salary of $ 1,128 per week or $58,656 per year.
While businesses in various industries are grappling with questions of whether to raise salaries or move employees to hourly pay, the new salary thresholds also provide an opportunity to revisit the basics of the FLSA. While there is renewed focus on the salary threshold, businesses must keep in mind the other requirements for employees qualifying for an FLSA exemption.
What does the FLSA do?
Before digging into the details of the exemptions to the FLSA’s requirements, a refresher on what the FLSA requires is in order. The FLSA has two main requirements relevant to compensating employees: the minimum wage requirement and the maximum hours requirement. The minimum wage requirement sets the minimum hourly rate at which employers may pay their employees. The rate is currently $7.25 per hour, though some states mandate a higher minimum wage. The maximum hours requirement requires employers to compensate their employees at 1 1/2 times the employee’s regular rate for time worked in excess of 40 hours in the workweek.
Who is exempt?
The FLSA’s minimum wage and maximum hours requirements do not apply to all employees. Employers should first be aware that there are specific FLSA
exemptions. For example, the FLSA includes specific exemptions for certain employees of camps, the agricultural industry, and baseball players. Determining whether an employee falls under the many specific examples is often relatively straightforward. More commonly, however, when employers are tasked with classifying their employees as exempt or non-exempt, the employer must determine whether an employee falls under the many specific examples is often relatively straightforward. More commonly, however, when employers are tasked with classifying their employees as exempt or non-exempt, the employer must determine whether an employee falls within one of four exemption categories: executive, administrative, professional, and highly compensated.
The Salary Threshold
The first step in determining exemption under each of these categories is the minimum salary threshold. The minimum salary threshold for the executive, administrative, and professional exemptions, as of July 1, 2024, and until January 1, 2025, is $844 per week or $43,888 per year. In addition to the total amount of the minimum salary, employers must pay attention to how they pay their executive, administrative, and professional exempt employees. While there are some exceptions, employers must generally pay their exempt employees on a “salary basis” to satisfy the salary threshold. Compensation on a salary basis means the employee receives their salary regularly—such as weekly, biweekly, monthly, etc.—and in a predetermined amount, regardless of the quality or quantity of work the employee performed.
As of July 1, 2024, the salary threshold for the highly compensated employee exemption is $132,964 per year, up from the previous threshold of $107,432 per year. On January 1, 2025, the salary threshold rises to $151,164 per year.
Administrative Exemption
The Remaining Requirements for FLSA Exemption
The salary threshold is only the start of determining whether an employee is exempt. In addition to the salary threshold, the four principal FSLA exceptions have additional requirements, set out below.
Executive Exemption
• Employee’s primary duty is management of the enterprise or a recognized subdivision of the enterprise.
• Employee regularly directs the work of two or more other employees.
• Employee has the authority to hire or fire other employees or has significant input on employees’ changes in employment status.
• Employee’s primary duty must be “the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers”.
• Employee’s duties must include “the exercise of discretion and independent judgment with respect to matters of significance.”
Professional Exemption
• Employee’s primary duty must be performing work that either:
o (1) requires “knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction” or
o (2) requires “invention, imagination, originality or talent in a recognized field of artistic or creative endeavor.”
Highly Compensated Employee Exemption
• Employee’s “primary duty includes performing office or non-manual work”.
• Employee “customarily and regularly performs any one or more of the exempt duties or responsibilities of an executive, administrative, or professional employee”.
What is an employee’s primary duty?
With each of the exemptions discussed above, it is necessary to determine an employee’s primary duty. Naturally, almost every employee will have duties that fall under exempt status and non-exempt status, so how are employers to determine whether an employee is exempt?
This is where employers can go wrong. Employers often rely upon a job title that sounds like an exempt position or a couple of lines in a job description that sound executive or managerial. However, an employee’s job title is not sufficient to establish an FLSA exemption. Further, while job descriptions are important tools to explain why an employee is exempt under the FLSA, job descriptions alone cannot establish that an employee is exempt under the FLSA.
There are numerous examples of the perils of relying on a job title to establish exempt status. A federal district court in Tennessee found that an employer had wrongfully classified certain employees as exempt, thought the employer considered the employees to be management. The case was brought by seven employees. The employees had various job titles including buzz words, such as “supervisor,” “specialist,” “coordinator,” and “manager.” However, the court looked at the employees’ actual duties and the importance of each of those duties to their jobs and concluded that the employees were entitled to overtime pay. In another case, a federal district court in Texas held that a class of “assistant store managers” could take their FLSA claims to trial against an employer. Despite the ASMs’ “managerial” titles, the court found that there remained a question of whether their employer misclassified them as exempt under the FLSA. Employers who are found to have misclassified employees as exempt are not only on the hook for paying employees the overtime compensation to which they are entitled; employers may face a judgment that includes twice the amount of backpay owed plus the employee’s attorney’s fees and court costs.
As the rules effectuating the FLSA—and these cautionary tales—show, the focus of exemption analyses must be on an employee’s actual duties and responsibilities. Federal rules specifically direct the focus of an employee’s primary duty on an employee’s main and most important duty. The rules further list factors to help determine an employee’s primary duty: “the relative importance of the exempt duties as compared with other types of duties; the amount of time spent performing exempt work; the employee’s relative freedom from direct supervision; and the relationship between the employee’s salary and the wages paid to other employees for the kind of nonexempt work performed by the employee.”
Conclusion
The new salary thresholds for FLSA exemption offer employers a great reminder to evaluate how they classify their employees. Employers must evaluate their employees’ actual duties and responsibilities to determine whether they are exempt. Failure to do so can prove costly.
These salary thresholds are the basis for the standard salary level for the administrative, executive, and professional exemptions. There is a separate salary threshold for the “highly compensated employees” exemption, the threshold for which is addressed later in this article.
29 U.S.C. § 213(a).
29 C.F.R. § 541.600(a)
29 C.F.R. § 541.602(a).
Like with the other exemptions, there are requirements related to how an employer pays their highly compensated employees. A portion of the salary must be paid on a salary basis, as defined above, or on an agreed upon per-job basis. 29 C.F.R. §§ 541.602, 541.605. The minimum amount that must be paid in this manner is equal to the salary threshold for the executive, administrative, and professional exemptions. 29 C.F.R. § 541.601.
Examples of management activities include interviewing, training employees, directing employees’ work, disciplining employees, and setting employees’ rates of pay and hours.
Id. at § 541.102.
29 CFR § 541.100(a).
Id. at § 541.200(a). The rules enumerate several relevant factors to determine whether an employee exercises discretion and independent judgment with respect to matters of significance including, “whether the employee has authority to formulate, affect, interpret, or implement management policies or operating practices; whether the employee carries out major assignments in conducting the operations of the business; [and] whether the employee performs work that affects business operations to a substantial degree, even if the employee’s assignments are related to operation of a particular segment of the business[.]” Id. at § 541.202(b).
Id. at § 541.300.
Id. at § 541.601
Id. at § 541.2.
See e.g. Velazquez v. Costco Wholesale Corp., 603 F. App'x 584, 586 (9th Cir. 2015).
Lee v. Tva, No. 3:99-CV-459, 2006 U.S. Dist. LEXIS 104952 (E.D. Tenn. June 1, 2006).
Reyes v. Tex. EZPawn, L.P., 459 F. Supp. 2d 546 (S.D. Tex. 2006).
29 U.S.C. § 216.
29 CFR § 541.700(a).
Id.
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Nicholas Hodge 5901 Walden Dr. Knoxville, TN 37919 865-588-0631
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