Winter/Spring 2017

WINTER/SPRING 2017

EORGIA

CONSTRUCTION TODAY

PLUS: • Blurred Lines: Beware of the Desire to Deflect Responsibility in These Days of Greater Collaboration • Paycheck Transparency • So...What’s Happening with Those New Overtime Rules?

• Bring the Family to Annual Convention • Great Opportunities for Professional Development and Networking

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table of contents Message from the President 7 Young Leadership Program Corner 19

Great Opportunities for Professional Development and Networking 21 Index to Advertisers/Advertisers.com 22

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17 S o...What’s Happening with

9 Grassroot Member Support for Construction Programs Across Georgia

Those New Overtime Rules?

This article provides an overview of the changed Fair Labor Standards Act rules and the status of legal proceedings related to the injunction by a federal court in Texas.

For several years, AGC Georgia has placed a concentrated effort on working in partnership with our members to help grow the construction industry’s future workforce. This article showcases the many ways member companies are a resource for construction classrooms.

18 Bring the Family to

Annual Convention

14 Blurred Lines: Beware

of the Desire to Deflect Responsibility in These Days of Greater Collaboration

The Annual Convention, to be held at the Ponte Vedra Inn & Club on June 11-14, will include networking, a business session, industry recognition programs, sports outings, family activities and oceanside relaxation.

While innovative construction delivery methods have much to offer in helping achieve greater efficiency, flexibility and value, these benefits come at a cost. By changing their roles and relationships, the parties may unwittingly blur the lines of demarcation that define and segregate their respective rights, risks and responsibilities.

16 Paycheck Transparency

The paycheck transparency requirements became effective on January 1, 2017, and apply to new contracts for goods and services, including construction, where the estimated value of the supplies acquired and services required exceeds $500,000 over the life of the contract.

Georgia Construction Today is published for Associated General Contractors of Georgia, Inc. 1940 The Exchange Atlanta, GA 30339 Tel: 678.298.4100, 800.203.4629 Fax: 678.298.4101 www.agcga.org

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>> MESSAGE FROM THE PRESIDENT

W

hile I’ve been engaged in AGC Georgia in many ways for more than 20 years, serving as your President has taken my appreciation for our incredible association to a new level. Perhaps the most inspiring part is experiencing firsthand how much you, my fellow members, want to volunteer your time and expertise to make the entire industry better. Construction is competitive. Yet, every day you enthusiastically answer the call to share best practices at peer learning programs, taskforces, shared interest groups, committees and boards.

I appreciate how well our industry graciously works sideby-side with competitors for a bigger cause.

Since taking office in June, I’ve asked you to work with me to engage in more strategic and results-oriented conversations on two issues: diversity and inclusion in the construction workplace and cultivating sustainable connections with K12 administrators, teachers and students, particularly in high and middle school construction programs, to grow interest in construction careers. I’m humbled to say so many of you who attended one of my seven President’s Tour meetings in November embraced my request and are making a difference.

Our Diversity & Inclusion Taskforce has spirited, honest and nothing short of amazing conversations. While this group knows it’s imperative to grow our workforce by consciously cultivating an inclusive culture, we recognize our role of helping others see the benefits. CM programs are graduating a fraction of the project managers needed.

Our field leaders are retiring by the dozens, yet there’s only a trickle in our pipeline who stand ready. I sincerely believe our industry will not survive, yet alone thrive, if we don’t take purposeful steps toward changing our culture to one that embraces more women and minorities.

I invite you to join our session facilitator, Brent Darnell, and me for a half-day Diversity & Inclusion program on Friday, May 5 at AGC Georgia’s Training Center. We promise an eye-opening, inspiring conversation full of tangible reasons companies experience greater ROI with diverse workforces.

The other area I’m concentrating on is highlighted in our first feature article. Grassroot support for construction programs is another critical element to creating a sustainable workforce. Please take a moment to read through the sampling of connections our fellow members are making GEORGIA CONSTRUCTION TODAY

Randy Hall, President & CEO Batson-Cook Company 2016-2017 President AGC Georgia

with construction programs and CTAE classrooms. If your firm is already engaged, thank you! If you want advice on what your first step can be, connect with AGC Georgia’s staff. We need you; actually the instructors and students need you and benefit from industry support. And, like all volunteer work, you and your team will get more out of it than you can imagine.

Thank you for your support and involvement with AGC Georgia. There is no way to keep our consistent position as a top AGC of America chapter without forward-thinking, generous volunteers helping lead us. Very few associations across all industries are brave enough to realize success is only temporary, and you must always challenge the status quo and never back away from hard issues. This philosophy is a testament to you and all the leaders who paved the way for us to be successful today. I look forward to continuing to work with you for the rest of my term and for many more years to make Georgia’s construction industry even better!

■

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>> FEATURE

GRASSROOT Member Support

for Construction Programs Across Georgia

Need help introducing construction careers to even more students

F

or several years, AGC Georgia has placed a concentrated effort on working in partnership with our members to help grow the construction industry’s future workforce. While there are many ways to promote the industry and its rewarding careers, one of the most successful is for member contractors to be an extension of construction classrooms – a true grassroots effort. This practice allows young people to develop personal connections

with industry professionals who are passionate about their work, which is the best testimony a young person can have when deciding their future education and career plans.

Representatives from numerous member firms are personally engaged in high school, college and career academy and technical college construction programs. On page 10, we provide a list of schools AGC Georgia members are working with. If you see

GEORGIA CONSTRUCTION TODAY

WINTER/SPRING 2017

a school near your office, jobsite or home, please contact Bill Chambless with AGC Georgia to lend your firm’s support. There are approximately 160 construction programs in Georgia, and we have documented support of nearly 70 of them. For a list of all schools in Georgia with construction programs, please visit tinyurl.com/h25c928.

Here are a few ways you can connect with construction programs.

• Invite classes for jobsite tours during multiple phases of a project • Participate in campus career fairs/ recruiting events and organize mock interviews to help teach soft skills • Serve on program advisory boards/ councils • Offer your trade professionals to demonstrate and help teach specific lessons with instructors • Deliver materials for construction lab building projects • Partner with school’s STEM program • Organize skilled trade challenges with regional schools and support SkillsUSA competitions • Participate in CEFGA K12 Pipeline, their student employment efforts, and annual Career Expo which hosts 6,000 students • Donate money to instructors for tools/materials or to attend training • Arrange for field personnel to executives to visit a class and share their career path with students If you have other innovative ways you are partnering with construction programs, please share with Bill Chambless at 478-972-5865 or chambless@agcga.org.

9

lab on campus. Tammy Childs, Batson-Cook, visited Hardaway HS (Columbus) to help students with a masonry project and spoke to them about the wide array of career opportunities in the industry. Barry Darnell, BatsonCook, taught an OSHA 10-Hour for Construction class to students at Kennesaw Mountain HS.

F red Hill, The SACK Co., visited students from all CTAE classes at Evans HS. He discussed the importance of being prepared for the workplace and understanding the benefits of soft skills and a great work ethic. Hill also volunteered his time to share the same message at Statesboro HS and South Paulding HS. The firm sponsored a Students in Business Day for Dublin-Laurens County.

Joe Tuggle, Swofford Cons­ truction Co., moderated a panel discussion on construction careers for students at Griffin HS. Speir & Associates Electrical Contractors also participated. Griffin students visited a local Swofford jobsite.

Tuggle later visited with Spalding County HS construction students.

We are proud to showcase examples of members’ interactions with construction programs from recent months.

This list is not exhaustive. More details of member engagement are found at www.agcga.org/workforce.

Lentile Construction Co. invited East Laurens HS construction program students to hear a tool box talk hosted by the AGC Georgia Site Safety Van. Charlie Garbutt, Garbutt Construction Co., was a guest speaker for the school’s construction program.

AGC Georgia and member firms sponsored 12 girls at the Macon Mentoring a Girl in Construction (MAGIC) Camp. Esther Goss, Brown, Nelms CPAs, spoke to the attendees. Other companies donating time and resources include All-State Electrical Contractors, Garbutt Construction Co., Greene and Associates, Inc., Parrish Construction Group, Inc., Sheridan Construction, Brasfield & Gorrie, and Heaton Erecting, Inc.

Students from Crim HS were an integral part of Batson-Cook Co.’s team as they built a new construction

Joining him to speak to students were professionals passionate about their career as a superintendent, electrician, plumber, and grading foreman.

During a renovation project at Jordan HS (Columbus), River City Contracting’s team spoke to construction students. A project manager explained how plans are used and details of the scheduling process. Students went on a guided tour of the construction site.

John Case, Brasfield & Gorrie, visited students at South Paulding HS. He shared information about OSHA jobsite rules and safety in wood frame construction.

McCarthy Building Companies, Inc. regularly visits construction students at Warren Technical School (Atlanta). Various execs and project managers speak to the class about future career opportunities and host the students for jobsite tours.

Pellicano Construction has a partnership with Monroe HS (Albany).

The Carpentry and Introduction to Construction and Safety classes participated in jobsite tours at the firm’s local project.

AGC Georgia members are working with the following construction programs.

• • • • • • • • • • • • • • • • • • • • • • •

10

Adairsville HS Allatoona HS Bainbridge HS Bainbridge State College Berkmar HS Cairo HS Chattahoochee County HS Marietta City Schools Collins Hill HS Colquitt County HS Commodore Conyers College & Career Academy (Albany) Crim HS (Fulton Co.) Crisp County HS Dublin HS Early County HS East Laurens HS Effingham County HS Evans HS Floyd County HS Fulton Schools College & Career Academy Griffin HS Grovetown HS Hardaway HS (Columbus)

• • • • • • • • • • • • • • • • • • • • • •

Hawkinsville HS Henry County College & Career Academy Hephzibah HS Houston County College & Career Academy Howard HS (Macon) Hutchings College & Career Academy Jackson HS Jefferson City HS Jefferson County HS Johnson HS (Gainesville) Jones County HS Jordan HS (Columbus) Kennesaw Mountain HS Lamar County College and Career Academy Lanier Career Academy Lee County HS Lincoln County HS Lumpkin County HS Marion County HS Maxwell HS Miller County HS North Cobb HS

• • • • • • • • • • • • • • • • • • • • • •

North Paulding HS Osborne HS Peach County HS Roswell HS Schley County HS Seminole County HS South Cobb HS South Georgia Technical College South Paulding HS Spalding HS Statesboro HS Stephens County HS Telfair County HS Tift County HS Turner County HS Turner Job Corps (Albany) Upson-Lee HS Washington County HS West Hall County HS West Laurens HS Windsor-Forest HS (Chatham) Worth County HS

GEORGIA CONSTRUCTION TODAY

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Participants of a recent Statesboro HS Advisory committee meeting included representatives from Georgia Southern University, Oge­ echee Technical College, Fred Hill, The SACK Co., and Daniel Tucker, Mock Plumbing and Mec­hanical, Inc. The group discussed plans to grow the program and build on recent successes.

JE Dunn Construction hosted students from Windsor Forest HS (Savannah) for a jobsite tour.

Representatives associated with Greene and Associates delivered plumbing supplies to the construction class at Lamar County HS’s construction program. The school also received lumber from Piedmont Construction Group and electrical supplies from Penco Electrical Contractors, Inc.

Collins and Arnold Construc­tion Co. donated numerous loads of lumber leftover from various projects

to Roswell HS for the students to use on numerous class projects.

Mike Kenig, Holder Cons­truction Co. is a board member of the Atlanta College & Career Academy, a partnership between local high schools and Atlanta Technical College.

Steve Barrett, MetroPower, met with the South Georgia Technical College President and other administrators to tour the MetroPower apprenticeship program at the college. The group also discussed workforce issues plaguing the industry.

Joe Tuggle, Swofford Cons­ truction, Inc., is a member of a Southern Crescent Technical College’s Advisory Board.

The SACK Co. presented a check to Statesboro HS’s construction program to use toward student participation in the SkillsUSA competition. BAK Builders delivered materials to the same school.

Keith Watson, Bowen & Watson; Ashley Brown, SkillsUSA; Brian Daniel, Carroll Daniel Con­ struction; and Mike Dunham, AGC Georgia; presented a $1,000 check to SkillsUSA Region 2 schools from AGC Georgia Foundation for supplies and resources to grow their programs. The check was given during a Northeast Georgia Workforce Development Alliance Meeting.

November 2016 Regional Skills Competitions; Helping Prepare Students for Regional SkillsUSA Championships • The Northeast Georgia Workforce Development Alliance hosted its first Skills Challenge in Nov. Students from five high schools competed in carpentry, masonry, plumbing and electrical. In addition to the competition, the event also held a “Construction University” where industry and technical college representatives spoke to students about the trades, education requirements, and apprenticeship and career opportunities. Support from Carroll Daniel Construction Co. and MetroPower, Inc. made this event possible.

• Southern Crescent/Central Georgia Workforce Development Alliances joined together to host their first Skills Challenge in Nov. to help students prepare for January regional SkillsUSA Competitions. Over 55 students competed in welding,

plumbing, carpentry and electrical. Mary Persons HS (Forsyth) won the overall award with the most points. A huge thank you goes to event sponsors All-State Electrical Contractors, Bardi Heating & Air Conditioning, Inc., C. C. Owen Tile Company, Inc., Ernst Concrete, MetroPower, Inc., Garbutt Construction Co., Geotechnical & Environmental Consultants, Inc., Parrish Construction Group, Penco Electrical Cont­ ractors, Inc., Piedmont Con­ struction Group, LLC, Pyramid Masonry Contractors, Inc., R&B Metal Structures, Inc., Rightway Drywall, Inc., She­ ridan Construction, Swofford Construction, Inc., and Young Contracting/SE, Inc. • The East Georgia Workforce Development Alliance hosted their 3rd Annual Skills Challenge

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in Nov. More than 70 students from 11 schools participated, and 160 students attended. Students competed in carpentry, electrical, masonry, plumbing, and beginner/advanced/fabrication welding. Students from Evans HS, Statesboro HS, West Laurens HS, Jefferson Co. HS, and Grovetown HS earned first place honors. Sponsors included Ace Electric, Inc., R. W. Allen, LLC, Augusta Industrial Services, Inc., Cherokee Brick & Tile, Dublin Construction Co., Inc., Garbutt Construction Co., Genesis Elevator Company, Georgia Drywall, Inc., Gold Mech, Inc., Lentile Construction Co., MetroPower, Inc., MidSouth Interior & Exteriors, Mock Plumbing and Mechanical, Inc., Pyramid Masonry Contractors, Inc., and Thomas Concrete of Georgia, Inc. 11

AGC Georgia members and chapter staff are also actively working with state leaders to bring attention to the need for more funding for existing CTAE programs and advocating for additional construction programs to be started in areas where they do not offer this curriculum.

Earlier this year, in partnership with AGC Georgia’s efforts to bring awareness to careers in construction and the need to build our workforce pipeline, Governor Deal added construction to his list of High Demand Career Initiatives.

During the 2017 legislative session, AGC Georgia was asked to be an active participant in Lt. Gov. Cagle’s Senate Bill 3. It’s known as the CONNECT Act (Creating Opportunities Needed Now to Expand Credentialed Training). This bill will help bring more funding and awareness to construction.

Charlie Griffis, Parrish Cons­ truction Group, attended the MaconBibb County Workforce Development Council Kick Off that was formed in reaction to the growing concern from local industry for the lack of skilled workers. AGC Georgia and member firms continue to participate.

The Construction Education Foundation of Georgia (CEFGA) sent a proposal to Mike Royal, Chair of the State Board of Education, outlining a path to certify 100% of Georgia’s high school construction programs so they can teach work-ready skills to future talent. AGC Georgia worked with CEFGA to move this effort forward.

The Central Georgia Workforce Development Alliance met with education and industry representatives

12

to discuss the need for developing curriculum for supervisor training at the post-secondary level. The program would include NCCER Core and Level 1 in many trades as well as AGC of America’s Supervisory Training Program. Attendees included representatives from Technical College System of Georgia; Oconee Fall Line Technical College; CEFGA; East and West Laurens HSs and members: Charlie Garbutt, Garbutt Construction Co.; Tom Hall, Dublin Construction Co.; Walter Stafford, Stafford Builders & Contractors, Inc. Industry professionals and representatives from the DOE gathered at Crim Open Campus to discuss workforce issues and how teachers can get involved. Randy Hall, AGC Georgia President & President/CEO of Batson-Cook Co., shared an overview of association grassroots efforts and involvement in workforce development legislation.

AGC Georgia is working with other stakeholder groups, including DOL, DOE, and the Governor’s office, to expand the ability for organizations to create and individuals to participate in apprenticeship programs. Future programs are slated to connect with the Technical College System of Georgia.

Nancy Black, Batson-Cook Co.; Ryan Byars and Mike Kenig, Holder Construction Co.; Mike Feather, Marek Interior Systems, Inc.; and Michael Hatcher, Sovereign Cons­ truction & Development, attended the organizing meeting to create the Atlanta Construction Industry Sector Partnership.

Joe Marchese, Marchese Cons­ truction, is working with Effingham County to develop the framework to begin a high school construction program. Pellicano Construction, JCI Contractors, and MetroPower, Inc. are working with Commodore College & Career Academy to host a construction program. Parrish Construction Group, MetroPower, Inc., ACE Electric, Inc., ACE Technologies, All-State Electrical are working with Houston Co. College & Career Academy to start a construction program.

AGC of America’s STP is now offered at Oconee Fall Line Technical College. Charlie Garbutt, Garbutt Construction, was instrumental in working with AGC Georgia to bring this opportunity to local students. Guest speakers during the six unit course include many AGC Georgia members: Jacob Patton, All-State Electrical Contractors; Brent Darnell, Brent Darnell International; Charlie Garbutt and Edgar Graham, Garbutt Construction Co.; Chris Sheridan, Sheridan Construction; Jeff Arlington, The Christman Co.; and Jim Bidgood and Phil Beck, Smith, Currie, and Hancock, LLP. AGC Georgia is still very engaged in our state’s four-year construction management programs in addition to our work with high school and technical colleges. Cherri Watson, AGC Georgia serves on the CM department Advisory Board at Kennesaw State University. Parrish Construction Group, Inc. sponsored KSU’s CM students’ Welcome Back Cookout where the AGC Student Chapter was spotlighted.

■

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>> FEATURE

BLURRED

LINES Beware of the desire to deflect responsibility in these days of greater collaboration

I

n March of 2015, a federal jury in Los Angeles returned a multimilliondollar plaintiffs’ verdict in favor of two of deceased singer/songwriter Marvin Gaye’s children and against singers/songwriters Robin Thicke and Pharrell Williams. Ironically, this copyright infringement case arose from the 2013 hit song “Blurred Lines,” which was similar to Marvin Gaye’s 1977 song “Got to Give It Up” in some respects, but different in others.

The term “blurred lines” also des­ cribes today’s construction landscape.

Traditional project delivery methods and techniques—with welldefined lines delineating the parties’ roles, risks, rights and responsibilities—have increasingly yielded in recent years to more innovative, progressive and hybrid delivery methods, tools and techniques. These include concepts such as integrated project 14

By Philip E. Beck, Partner, Smith, Currie & Hancock LLP

delivery (IPD), IPD light (or IPD-ish), building information modeling (BIM), lean construction, public-private partnerships (P3), design-assist, green and sustainable construction and various means of achieving greater collaboration among project participants. And, while each of these developments has much to offer in terms of helping the construction industry achieve greater efficiency, flexibility and value, these benefits come at a cost. By changing their roles and relationships, the parties may unwittingly blur the lines of demarcation that define and segregate their respective rights, risks and responsibilities, especially if the legal and contractual implications of these innovations are ignored or not clearly understood and addressed.

An important but often overlooked fact of life and the law is that when

paradigms (for example, project delivery methods) change, the rules may change too. Construction professionals and even experienced construction attorneys are often surprised to learn that the fundamental legal principles that they took for granted and thought they understood (such as the Spearin doctrine) may no longer apply when the parties’ roles and relationships change.

Contractors, construction managers, subcontractors and suppliers need to recognize that by becoming involved in the design phase of projects and assuming a larger role in projects, they may also be taking on additional risks and responsibilities. Conversely, design professionals also need to recognize that unleashing the power of BIM may be in the best interests of the industry and/ or an individual project, and should not be encumbered by requiring the

GEORGIA CONSTRUCTION TODAY

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contractors and subcontractors who will be using and building upon the design professional’s digital design to sign one-sided indemnification agreements shifting legal responsibility for the design professional’s design to the contractors and subcontractors, such as the documents I have seen employed on a number of projects recently.

Finally, owners need to realize both 1) the benefits that can be achieved through greater collaboration in project delivery, and 2) the fact that integrated and shared roles and responsibilities should logically lead to integrated and shared risks as well, rather than resorting to trench warfare and a bunker mentality when disputes and challenges inevitably arise.

To quote author Frederick B. Wilcox: “Progress always involves risks. You can’t steal second base and keep your foot on first.”

But those risks should be clearly defined and fairly allocated on the front-end of projects, making each party accountable for the things they are best able to control, rather than by scrambling to unscramble the egg after disputes arise. In the words of Marvin Gaye (with attribution), when it comes to avoiding risks, construction participants sometimes “Got to Give It Up” rather than trying to insulate themselves and deflect all responsibility to others in order to realize the full benefits of collaboration.

Finally, we construction attorneys who care about the future of the industry we serve and the welfare of our clients need to fully appreciate and counsel our clients regarding the ramifications of innovation—not so that we can serve as impediments to progress, but, rather, so that we can assist our clients and the industry to embrace change, progress with everyone’s eyes open and more sharply focus the blurred lines.

■ Reprint of an editorial which first appeared in the October 17, 2016 issue of Engineering News Record.

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>> FEATURE

Paycheck Transparency The new rule went into effect January 1, 2017

By Philip Siegel, Partner, Hendrick, Phillips, Salzman & Siegel, P.C.

O

n October 24, 2016, the United States District Court for the Eastern District of Texas issued a temporary restraining order and preliminary injunction blocking implementation of certain provisions of the Fair Pay and Safe Workplaces Executive Order. Those provisions blocked by the court were commonly referred to as the “black listing” provisions because they required federal contractors and subcontractors on covered contracts to represent whether they had any record of violations of certain labor laws in the previous three years. Contracting officers were then required to consider this information in determining whether a contractor “is a responsible source that has a satisfactory record

16

of integrity and business ethics.”

Additionally, the Order sought to prevent contractors from forcing their employees to arbitrate sexual assault and sexual harassment claims.

One component of the Executive Order which is not subject to the court’s temporary restraining order and preliminary injunction is what is commonly referred to as the paycheck transparency requirements. The paycheck transparency requirements became effective on January 1, 2017, and apply to new contracts for goods and services, including construction, where the estimated value of the supplies acquired and services required exceeds $500,000 over the life of the contract. The requirements also apply to new subcontracts for goods

and services, other than commercially available off-the-shelf items, where the estimated value of the supplies acquired and services required exceeds $500,000 over the life of the contract.

The paycheck transparency provisions of the Executive Order require covered contractors and subcontractors to provide workers with the following: (1) A wage statement identifying the number of hours worked and pay; (2) Notice to those employees who are classified as exempt from the FLSA’s overtime pay requirements; and (3) Notice to workers who will be classified as independent contractors rather than employees.

To comply with the first notice requirement, each pay period, covered

GEORGIA CONSTRUCTION TODAY

Continued on page 20

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>> FEATURE

So...What’s Happening with Those

New Overtime Rules?

By Mark Hanrahan and Chadd Reynolds Autry, Hanrahan, Hall & Cook, LLP

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enerally, the Fair Labor Standards Act (FLSA) ensures employees are provided minimum wage and overtime pay protections. Some employees, however, are exempt from overtime pay based on their type of work and salary amount. Under the Obama administration, the U.S. Department of Labor (DOL) changed the rules applicable to these exemptions, increasing the number of employees eligible for overtime pay.

The new rules were to go into effect on December 1, 2016; however, prior to the effective date, a federal court in Texas enjoined the application of the rules.

The injunction creates a lot of uncertainty. For now, the old rules applicable to overtime compensation apply; however, that may change. This article provides an overview of the changed rules and the status of legal proceedings related to the injunction.

The proposed new rules that have been enjoined Under the new DOL rules, for construction employees to be exempt from overtime pay, they must make above $47,476 annually or $913 weekly, on a salary or fee basis, and fall under the professional, administrative, or executive exception. All employees not meeting the salary requirement and not fitting an exemption will be entitled to overtime.

To qualify under the professional exemption, an employee must primarily perform work that requires GEORGIA CONSTRUCTION TODAY

advanced knowledge in a field of science or learning, usually obtained through a degree, or work requiring invention, originality, or talent in a recognized field of artistic or creative endeavor. While it is beyond the scope of this article to address the application and issues raised by the exemptions, contractors employing engineers to perform engineering or design tasks may conclude such employees fall under this exemption.

To meet the administrative exemption, an employee must primarily perform work involving office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers and exercise discretion and independent judgment with respect to matters of significance.

Employees qualifying for the executive exemption must primarily perform work involving the duty of managing the enterprise or a department, regularly direct the work of at least two full-time employees, and have the authority to hire and fire other employees or have their recommendations as to hiring and firing be given particular weight. Construction firms may conclude, depending on how their job descriptions are defined, project managers and even superintendents may fall into this exemption.

The Injunction The injunction arises from a legal challenge commenced by multiple states and was issued by a federal WINTER/SPRING 2017

judge in the Eastern District of Texas.

The judge placed a hold on the rules, stating the salary change requirement was without statutory authority. The DOL, under the Obama administration, appealed the decision to the 5th Circuit Court of Appeals hoping to remove the injunction. The parties completed briefings in mid-February and the court is expected to expedite oral argument in the following weeks.

The Trump administration Under the Trump administration, the DOL could simply choose to withdraw its appeal, and the current injunction would stay in place. Yet, if the appeals process continues, it still may be months before there is a resolution to the matter.

Further, on the day of his inauguration, President Trump issued a memorandum to all federal agencies placing a freeze on pending regulations. Under this action, the new overtime regulations would be delayed from going into effect for 60 days. But, since the regulations are currently enjoined, the memorandum will have little effect, unless the court overturns the injunction during that period.

Going forward, businesses should pay close attention to actions by the Trump Administration and any court ruling, as any action on the injunction will have important implications, including the cost of providing services and employee morale. Please check our construction blog at www.ahclaw.com for updates on this matter.

■ 17

>> FEATURE

Bring the Family to

Annual Convention

Join us in Ponte Vedra Beach for Some Fun in the Sun AGC Georgia Annual Convention Sunday-Wednesday, June 11-14, 2017 Ponte Vedra Inn & Club Ponte Vedra Beach, Florida

M

ark your calendar for AGC Georgia’s Annual Convention this June at the beautiful Ponte Vedra Inn & Club. Located just 20 miles south of Jacksonville in the seaside village of Ponte Vedra Beach, the Inn & Club provides a relaxing oasis by the sea.

Guests enjoy world-class accommodations and amenities at both Ponte Vedra Beach Resorts.

Leaders of Georgia’s construction community will gather at the AGC Georgia Annual Convention for this memorable experience. Convention includes: • Networking • Business Session • Industry Recognition • Sports Outings • Family Activities • Oceanside Relaxation As past convention attendees attest, the event’s business sessions and opportunities to build your network are invaluable to professionals.

While we proudly offer business opportunities, we also build in time for attendees and their families to gather with each other. Visit the Annual Convention webpage at agcga.org/annual convention for complete details. ■ • Registration options begin at $450 • Young Leadership Program participants are eligible for complimentary registration

18

Tentative Schedule At-A-Glance Sunday, June 11 9:00 a.m. Golf Tournament 5:30 p.m. Welcome Reception and Kids Activities Monday, June 12 7:30 a.m. Business Session Begins 8:30 AGC Kids Club 9:30 Ladies Brunch 1:00 p.m. Open Play Golf at the Lagoon Course 6:00 AGC Kids Club 6:30 Young Leadership Program Activities Tuesday, June 13 7:30 a.m. Awards Program Begins 8:00 AGC Kids Club 6:30 p.m. AGC Kids Club 6:30 Closing Dinner with SIR Award Presentation to Phil Beck, partner, Smith, Currie & Hancock LLP and Installation of 2017-18 President Scott Clark, president/COO of R.W. Allen, LLC, and his fellow Board members.

Wednesday, June 14 11:00 a.m. Hotel Check-Out

• Hotel reservation deadline: May 16, 2017 at 5:00 p.m.

(Room block typically runs out prior to this deadline) • Room rates begin at: $279/night

GEORGIA CONSTRUCTION TODAY

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YOUNG LEADERSHIP

Program Corner Sporting Clays Event Success

Successful National Conference in Atlanta

In its second year, the Sporting Clays Fundraiser hosted by YLP raised $13,500 for the AGC of Georgia Foundation, Inc. The money raised will be used to support several organizations including Hillside, CEFGA and other community outreach programs. This year’s event will be held on Friday, November 10 in Forsyth, GA.

This past October, AGC Georgia hosted the AGC of America Cons­truction Leadership Council’s Lead­ership Development Conference (CLC LDC) in downtown Atlanta. Over 200 young professionals, 57 from Georgia, attended leadership sessions covering everything from the attributes of a great leader to creating long-lasting business relationships during the two-day conference. Among a host of speakers from across the nation, AGC Georgia members Brent Darnell of Brent Darnell International, Matt Lee of Young Contracting/ SE, Inc., and Pete Pemantell of Holder Construction Co. led sessions.

Attendees were also treated to a tour of the new Mercedes-Benz Stadium and SunTrust Park. To close the conference, care bags were assembled for patients at Children’s Healthcare of Atlanta and Cancer Treatment Centers of America at Southeastern Regional Medical Center. Many YLP members played an integral role in organizing the educational content and coordinating the group activities to ensure a successful event.

Notable YLP Opportunities through Summer 2017

1

March 24 – Participation in CEFGA VIP Breakfast (College Park) March 30 – Networking Event (Macon) April 12 – Professional Development Session (Atlanta) May 3 – Annual YLP Golf Classic (Sharpsburg) May 17 – Awards Luncheon for Top Fundraisers (Atlanta) June 11-14 – Annual Convention (Ponte Vedra Beach) June 26 – Serve at MUST Ministries (Marietta)

■

3 1. Y LP members participated in laying thousands of wreaths on graves at the Georgia National Cemetery in Canton.

2. A t the YLP Holiday Luncheon, a truck load of toys was collected for Toys for Tots.

3. Y LP members visit Hillside in December to deliver clothes, toys, and luggage to 75+ children in the center’s care.

2 GEORGIA CONSTRUCTION TODAY

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19

Continued from page 16

contractors and subcontractors must provide their employees in each paycheck notice of the number of hours worked, overtime calculations, rates of pay, gross pay and additions and deductions from pay. Notably, for those contractors and subcontractors who comply with similar wage statement requirements in Alaska, California, Connecticut, the District of Columbia, Hawaii, New York or Oregon, such compliance also meets the wage statement requirements of the Executive Order. Contractors and subcontractors complying with the wage statement requirements in these states do not need to change their practice in order to comply with the Executive Order.

To comply with the second notice requirement, covered contractors and subcontractors must provide written notice to those employees who are

considered exempt. This notice can be provided in the form of an offer letter, an employment contract, a job description, or a wage statement.

The notice must only be provided one time, either before the employee performs work on a covered contract, or in the first wage statement under the contract.

For workers who will be classified as independent contractors, rather than employees, the third requirement of the Executive Order requires contractors and subcontractors to inform such workers of their status as independent contractors. Similar to the notice provided to employees classified as exempt, this notice must be provided in writing before workers begin work on each covered contract. Importantly, the notice must be separate and distinct from any written contract governing the

relationship between the contractor or subcontractor and the independent contractor.

While President Trump is on record with his plan to reverse all of President Obama’s executive orders, he has not commented specifically on the pay check transparency requirements of the Fair Pay and Safe Workplaces Executive Order that became effective January 1, 2017.

■ About the Author: Philip Siegel is a partner and shareholder with the firm Hendrick, Phillips, Salzman & Flatt, P.C., whose practice focuses on labor and employment matters within the construction industry. Philip has an undergraduate B.B.A. from the University of Michigan, and he obtained his law degree from Emory University School of Law. Philip can be reached at (404) 469-9197 or pjs@hpsf-law.com.

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GREAT OPPORTUNITIES for Professional Development and Networking I

ncluded are a few major events AGC Georgia is hosting or proud to be a part of this year. Consider registering team members looking to build your firm’s network and enhance their personal and professional growth. Visit www.agcga.org/calendar for details.

7-part Lean Education Program Ongoing sessions throughout 2017, with new series beginning on April 13, October 24, and November 16 Sessions can be attended out of sequence 4-part BIM Education Program Ongoing sessions throughout 2017 Sessions can be attended out of sequence Georgia Struck-By Alliance Safety Stand Down April 3-7 on construction jobsites Region IV Landscaping Stand Down April 5-7 on construction jobsites Construction Technology Event April 26 in Atlanta Safety Week May 1-5 on construction jobsites Young Leadership Program Golf Classic May 3 at Canongate 1 Golf Club in Sharpsburg

Fall Leadership Conference October 12-15 in Pinehurst, NC AGC Georgia Member Marketplace November 15 at Marriott Atlanta Northwest at Galleria

Diversity & Inclusion Seminar for Construction Professionals May 5 at AGC Georgia Training Center OSHA’s Fall Prevention Safety Stand Down May 8-12 on construction jobsites Annual Convention June 11-14 at Ponte Vedra Inn & Club in Florida AGC Georgia’s Safety Stand Down focusing on Heat Illness Summer 2017 on construction jobsites

Young Leadership Program Charity Sporting Clays Event November 10 in Forsyth Young Leadership Program Holiday Luncheon December 2 in Atlanta

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>> INDEX TO ADVERTISERS/ADVERTISERS.COM *AGC Georgia Members

ACCOUNTING/MANAGEMENT CONSULTANTS Windham Brannon, P.C. ����������������������������������������������8 www.windhambrannon.com ARTIFICIAL TURF *Sports Turf Company, Inc. ��������������������������������������13 www.SportsTurf.net ASPHALT EMULSIONS/ EMULSIFYING AGENTS Ergon Asphalt & Emulsions, Inc. ��������������������������������3 www.ErgonAsphalt.com ATTORNEYS *Autry, Hanrahan, Hall & Cook, LLP ���������������������������6 ahclaw.com ATTORNEYS & COUNSELORS *Ogletree, Deakins, Nash, Smoak & Stewart, P.C. �����������������������������������������15 www.ogletreedeakins.com CONCRETE CUTTING & REMOVAL *ABC Cutting Contractors �������������������������������������������8 www.abccuttinginc.com CONSTRUCTION EQUIPMENT FLINT Construction & Forestry Division ����������������������������������������������������4 flintequipco.com ELECTRICAL CONTRACTORS *Eckardt Electric Co. ������������������������������������������������13 www.eckardtelectric.com Wayne J. Griffin Electric ���������������������������������������������8 www.waynejgriffinelectric.com

EQUIPMENT INSPECTIONS *All Trained, LLC ���������������������������������������������������������6 www.alltrained.com FENCING TEMPORARY *Central Fence Co., Inc. ����������������������������������������������7 www.centralfenceco.com FLEET SERVICES Billy Howell Ford Lincoln Mercury �������������������������� Inside Back Cover howellford.com Peach State Truck Centers ��������������Inside Front Cover www.peachstatetrucks.com GENERAL CONTRACTORS *New South Construction Co., Inc. �����������������������������6 www.newsouthconstruction.com HARDWOOD Southern Door & Plywood ����������������������������������������21 www.southerndoorply.com HVAC CONTRACTORS *Conditioned Air Systems, Inc. �����������������������������������8 www.conditionedairsystems.com HYDRAULIC EQUIPMENT REPAIR *Conditioned Air Systems, Inc. �����������������������������������8 www.conditionedairsystems.com INSURANCE *Yates Insurance Agency ��������������������������������������������6 www.yatesins.com INSURANCE & BONDS - SURETY BONDS *BB & T Insurance Services �������������������������������������13 www.Insurance.BBT.com

MECHANICAL CONTRACTORS *Greene and Associates, Inc. �������������������������������������8 www.greeneandassociatesinc.com METAL DOORS & FRAMES Southern Door & Plywood ����������������������������������������21 www.southerndoorply.com PORTABLE RESTROOMS National Construction Rentals ����������������������������������13 www.rentnational.com SAFETY TRAINING *All Trained, LLC ���������������������������������������������������������6 www.alltrained.com SITE UTILITIES *Brent Scarbrough & Co. ����������������� Inside Back Cover www.brent.us STORAGE CONTAINERS National Construction Rentals ����������������������������������13 www.rentnational.com TEMPORARY FENCING National Construction Rentals ����������������������������������13 www.rentnational.com TRADE SCHOOL *Georgia Trade School ����������������������������������������������20 www.GeorgiaTradeSchool.com WOOD & PLASTIC DOORS Southern Door & Plywood ����������������������������������������21 www.southerndoorply.com WORKER'S COMPENSATION INSURANCE *CompTrust AGC MCIC ����������������� Outside Back Cover www.comptrustagcmcic.com

Make plans to join us for the 2017 AGC Georgia Fall Leadership Conference ¤ ¤ ¦¡£¤ £ ¡¥ ¦¡£¤ထ

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