Risks and potential liabilities in the construction industry are not new. Construction participants know the typical hot spots: Projects are delayed. Supply chain issues raise materials costs. Owners and general contractors dispute the effects of changes in the scope of work. Employees can become injured.
Be aware that workplace conduct and practices are increasingly a priority and focus for governmental intervention, resulting in increased risk management attention on the construction industry. The Equal Employment Opportunity Commission (EEOC) is watching, and if you are not prepared, you could be liable for hundreds of thousands of dollars related to how your employees interact with each other. We recommend you immediately review your employment policies and procedures in addition to considering an update of your training practices.
In May 2022, the EEOC held a commission hearing on discrimination and harassment in the construction industry. The hearing focused on identifying and addressing inequities in an industry that the EEOC believes has been historically overlooked when it comes to balancing the scales. The EEOC stated it was committed to scrutinizing the construction industry and holding it to a higher standard than in the past. Based on recent lawsuits, the EEOC is upholding its commitment by looking across the country and filing lawsuits to showcase examples of behavior it wants the industry to correct. Here are some examples.
The construction industry is a multi-dimensional field with endless opportunities for people from many different backgrounds. To foster an environment that promotes diversity and inclusivity, it is important to review how a construction company handles situations that could threaten an employee's safety and security. There are many effective and preventive action items a company can take, such as reviewing and modifying mandatory policies and procedures, requiring mandatory employee training and providing accommodations for employees with disabilities and/or sincerely held religious beliefs.
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