Why Construction Companies Are Under Increased Scrutiny
If you own or manage a construction business in California, labor law compliance should be one of your top priorities. State agencies like Cal/OSHA, the Labor Commissioner’s Office, and the Employment Development Department (EDD) are closely monitoring businesses for violations related to:
- Workplace safety regulations
- Wage and hour compliance (accurate timekeeping)
- Independent contractor misclassification
Failing to comply with these regulations can result in hefty penalties, audits, and even lawsuits. One of the most overlooked – yet most critical – aspects of compliance is accurate timekeeping.
The High Stakes of Timekeeping Compliance
Construction businesses often face challenges when it comes to tracking employee work hours accurately. Workers frequently move between job sites, work irregular hours, and may not always have easy access to traditional timekeeping methods. However, under California labor laws, employers must:
- Maintain precise time records for all employees
- Track actual hours worked (not estimated or rounded)
- Ensure employees review and sign off on their hours each pay period
Many companies still rely on handwritten time cards or outdated punch clocks, which often lead to inaccurate records and compliance issues. Modern, precise timekeeping methods ensure accuracy and fairness for employees.
The Risks of Non-Compliance
If your company fails to keep accurate time records, you could face:
- Audits from state agencies
- Wage theft claims from employees
- Penalties for labor law violations
- Lawsuits that could cost your business thousands (or more)
For small and mid-sized construction companies, these penalties can be catastrophic, leading to financial instability or even business closure.
How to Protect Your Business from Compliance Violations
To avoid legal trouble, construction companies should:
- Train supervisors and employees – Make sure everyone understands timekeeping policies and compliance requirements.
- Regularly audit time records – Conduct internal reviews to catch errors before they become legal issues.
- Have employees verify and sign their timesheets – This protects against disputes and potential claims.
- Consult with an employment law attorney – A legal expert can help you navigate complex regulations and keep your business compliant.
Get Legal Help Before It’s Too Late
California’s labor laws are among the strictest in the country, and enforcement is only getting tougher. If your construction business isn’t already working with legal counsel to ensure compliance, now is the time to act.
At Koegle Law Group, we specialize in helping construction businesses navigate complex employment laws and protect themselves from costly legal issues.
Contact us today at 661-362-0813 to ensure your company meets all legal requirements.
Schedule a consultation – https://www.koeglelaw.com/contact/
