TBG 2009 Q2 Spring Newsletter

Prevent Nail Gun InjuriesFREE Money from OSHA!

Noise Levels Associated with Cutting Pavers

Pre-task Planning and Communication

QuarterlyExPRESSA publication of The Builders Group, protecting our Members with safety awareness.

Spring 2009

Built By the industry for the industry

3 Fund Manager’s View

4 OSHA News: Are You Missing Out on Free Money?

5 EASY-PAY: Monthly Prize Drawing

6 Nail Gun Injuries: Proven Methods to Reduce the Risk

8 Noise Levels Associated with Cutting Pavers

9 Pre-Task Planning and Communication in Construction

10 OSHA’s 2008 Most Cited Violations

11 New Independent Contractor Law

12 Safety at Work Award Winner: Steinhagen Enterprises, Inc.

The QuARTERLY ExPRESS is published quarterly by The Builders Group of Minnesota as a free service provided for our Members and contracted agents.

ConTriBuTorSJake LeoniTina Morales Jennifer NobleWayne PetersonJohn PrimozichKatie SchofieldStu ThompsonAdam TrippJim WaleriusJim Zugschwert

ConTenTS

©2009 The Builders Group of Minnesota. All Rights Reserved.

Marketing Jim Zugschwert 651-389-1049 [email protected]

Audit Jim Walerius 651-389-1143 [email protected]

Underwriting Jeanne Cunningham 651-389-1042 [email protected]

Accounting Jennifer Noble 651-389-1137 [email protected]

Loss Control Sandy Wilson 651-389-1047 [email protected]

MeadowBrook inSuranCe Group

Claims John Wiatros 651-255-2565

The BuilderS Group2919 Eagandale Blvd. Suite 100 Eagan, MN 55121

888-824-3923 Toll Free 651-389-1140 Local 651-389-1141 Fax

www.tbgmn.com

6

4

Built By the industry for the industry 12

8

The Builders Group is pleased to announce that we have arranged for our

Members to purchase work boots from Red Wing Shoes at a discounted price.

There will be 11 Metro Red Wing Stores participating in this program. Red

Wing provides the highest quality construction boots in a wide variety of

styles and prices. Remember, good quality boots will make your work

day safer and more comfortable.

In an effort to keep this offer exclusive to TBG Members,

we ask that you contact your Loss Control Representative

to obtain the 15% discount. At that time, your TBG Loss

Control Representative will provide you with the necessary

materials to get you started. Also, there will be catalogs, price

lists, and store listings for the Metro Red Wing Shoe Stores

available at your TBG Training Facility.

In these difficult times, I found the 2008 year to be one of many surprises. Our payrolls were down only 3.5% for the year which was much better than ex-pected. The premiums collected in 2008 were just over $30,000,000 which was down about 13% from the previous year. We started to see a reduction in claims in August and that trend has continued into 2009. Not only were the number of claims down about 13%, but severity was lower as well. The actuarial report also showed favorable claims development in excess of $5 million. So these results were better than expected.

The biggest surprise came in the severe drop in the stock market which led to a reduction in our investment portfolio. The equity portion of the port-folio did take a hit and the result will be a reduction in our surplus in 2009. The exact amount will be known when our CPA has completed the audit.

To lessen the chance of this happen-ing again, we have revised the Invest-ment Policy Statement and hired an Investment Manager who will manage all of the individual investment advisors. Our investment portfolio now empha-

sizes fixed income investments over equities and we are starting to see posi-tive gains again. We feel we are now well positioned for the future in this area.

For 2009 we are increasing our mar-keting efforts and have continued to cut expenses. We are expanding the number of associations that endorse The Builders Group and promote us as a member ben-efit. Other products are being developed that will help us write new business and benefit our current Members. We an-ticipate only moderate growth this year and are still looking to write policies for well-run construction and construction related firms. With our expense reduc-tion efforts, Investment Policy changes, and current marketing efforts, we are in good shape to meet today’s challenges as well as attain future growth at a lower expense ratio. Make sure you are using our loss control services that are avail-able to you. Work safe in 2009! Stu ThompsonFund Manager

viSiT uS online aT TBGMn.CoM 3

FuND MANAGER’S VIEW

Meeting Today’s Challenges

TGB Members wrangle Success at BaM’S 2nd annual Builders Convention

The Builders Association of

Minnesota held its 2nd annual

convention February 26 thru

March 1 at Cragun’s resort

in Brainerd. It was a western

theme with 180 participants

attending the three-day event

which included educational

opportunities, speakers,

hospitality suites, awards,

and a banquet.

We were very excited as

again this year TBG had one

of its Members receive The

Remodeler of the Year Award.

Robert Bell of Bell’s Remod-

eling was one of the winners

during Saturday night’s award

ceremony. Since 1988, Robert

has been a member of the

Arrowhead Builders Associa-

tion, the Builders Association

of Minnesota, and the NHAB.

He started Bell’s Remodeling

in 1987 and has been a TBG

Member since 1997.

We are also very excited

about TBG Member and cur-

rent board member Monte

Mraz of Heritage Minnesota,

LLC who was installed as the

2009 President of the Build-

ers Association of Minnesota.

We look forward to Monte’s

leadership.

Congratulations Robert

and Monte!

red wing Shoe discount for TBG Members!

4 QuarTerly expreSS • SprinG 2009

have TBG memBers received safeTy GranT funds? Yes, working with the Loss Control Representatives at TBG, many Members have received funds that assisted them in purchasing safety equipment. Here are some examples:

Electrical contractor received $5,000 for arc flash protective clothing

Painting contractor received $5,000 for fall protection equipment

Siding contractor received $10,000 for a new pumpjack system with railings

here’s how iT works The Safety Grant Program, ad-ministered by Minnesota OSHA Workplace Safety Consultation (WSC), awards funds up to $10,000 to qualifying employers for projects designed to reduce the risk of injury or illness to their workers. To qualify, an employer must meet the follow-ing conditions:

The employer must have work-ers’ compensation insurance

The employer must come under the jurisdiction of Min-nesota OSHA

A qualified safety professional must have conducted an onsite inspection and there must be a written report with recommen-dations based on the inspection

The project must be consistent with the recommendations of the safety inspection and must

reduce the risk of injury or dis-ease to employees

The employer must have the knowledge and experience to complete the project, and must be committed to its implementation

The employer must be able to match the grant money awarded and all estimated project costs must be covered

The project must be supported by all public entities involved and comply with federal, state and local regulations where ap-plicable.

how do you GeT This GranT money? Your first step is to contact your TBG Loss Control Representa-tive or Sandy Wilson at TBG, 651-389-1047 or [email protected]. You will need a recom-mendation from your TBG Loss Control Representative and to complete an application form. We have several Members cur-rently developing an application for such things as an auto-tarp-ing system, specialized hoisting equipment, fall protection and boom/scissor lifts.

This is just one of the value added benefits of being a TBG Member and having the re-sources of the Loss Control department. If you’re interested in stretching your dollars and significantly improving your level of safety in your business, contact the Loss Control Depart-ment to get started today.

are you missing out on Free money from Mn oSha?

by wAyNe PetersoN, CsP

OSHA NEWS

DID yoU KNow

that osHA will pay

you to purchase safety

equipment? Contact

your tbG Loss Control

representative today!

Did you know that MN OSHA will pay you to purchase safety equipment? Yes, last year be-tween July and October, this fund matching program pro-vided 43 safety grants totaling $293,942.15. The MN OSHA safety grant program will pay you a portion of total cost to re-duce the risk of injury or illness in your operations.


online Calculation, Manual payment

1. Gather payroll data.

2. enter payrolls online – the system will automatically calculate the premium!

3. Print the Monthly report.

4. write a check.

5. Mail to tbG five days before the 15th of the month.

tHere Are tHree MetHoDs for preparing your monthly reports and payments. All three methods are acceptable, but we recommend calculating and submitting your Monthly report online and paying with eAsy-PAy, our direct payment plan. It reduces your paperwork, increases accuracy, and simplifies the entire process.

online Calculation, online payment


2. enter payrolls online – the system will automatically calculate the premium!

3. Click on Pay online – the system will then process your payment.

Manual Calculation, Manual payment


2. write payrolls on Monthly report.

3. Calculate premiums manually.

4. write premiums on form.

5. write a check.

6. Mail to tbG five days before the 15th of the month.

when you pay with

Thank you to all our Members who use EASY-PAY to pay their monthly premiums.

firsT QuarTer winnersCongratulations to our first quarter 2009 EASY-PAY monthly prize winners:January Central Builders in Deer River

february North American Framing in Moundsview

march Clements Lumber in Morgan

Our monthly winners each received a $150 cash prize. You could be a winner too! If you are not already signed up for EASY-PAY, sign up at ww.tbgmn.com today to get in on our monthly prize drawing.

pay online and on Time for a chance To win!For every EASY-PAY payment received by the 15th of the month, your name will go into a drawing for a $150 cash prize. That means, you still have many

opportunities to win in 2009, plus you will increase your odds of winning the Grand Prize!

Grand prize – weekend GeTawayIn January 2010, for every month in 2009 that you paid with EASY-PAY by the 15th of the month, your name will go into a drawing for a weekend getaway for two at Grand View Lodge in Brainerd, Minnesota – including a $25 gas card and dinner for two!

Sign up for EASY-PAY by going to www.tbgmn.com and logging into your account or click on “Register for an account.”

Take your TBG benefits to

the next level!www.tbgmn.com

Take your TBG benefits to

the next level!www.tbgmn.com

stILL HAve qUestIoNs? Contact our

Director of Finance, Jennifer Noble,

at 888-824-3923, 651-389-1137, or

[email protected].

new payMenT MailinG addreSS: the builders Group – Attn: A/r – 2919 eagandale blvd., suite 100 – eagan, MN 55121-1214


Nail guns are an extremely common tool used in many aspects of construction, particu-larly in residential applications. They were developed in 1959 to increase productivity, as an aver-age house will require 50,000-70,000 nails during its construc-tion. Specifically with TBG Members, pneumatic powered guns for wood framing, interior carpentry, sheathing, and roof-ing are utilized the most. They are common, easy to acquire, and easy to use. However, the use of a nail gun should not be considered an unskilled task and the danger of nail guns should not be underestimated.

Nail gun injuries are highly under-reported and under-treated. Nails are very sharp and entrance wounds are small so employees will often pull out the nail and continue working, usually only seeking treatment if the injury is deep or they can-not remove the nail. However, reporting the injury, thoroughly cleaning the wound, and seek-ing medical treatment are very

› Accidental firing of the gun and double fire

› Careless handling of equipment

› Over penetration of the projectile through the material

› Ricochet

› Shattering of projectiles

› Structural unsoundness of material

› Defective equipment

Most Common Causes of Nail Gun Injuries

important because of the func-tional aspects of the nails. Nail strips are often glued or adhered together with a resin, plastic, or adhesive coating, and this will enter the wound. The human body will react to the foreign body, and this can cause swell-ing and infection. Additionally, very small pieces of clothing or surface skin can be dragged into the wound upon the nail en-trance, and these also aid in the production of infection. Infec-tion is very common if the nail has penetrated a joint. Barbs, to improve the grip of the nails in the wood, can cause secondary injury and more damage if the nail is removed incorrectly.

Hands and fingers account for 66% of nail gun injuries. Em-ployees have an extremely low perception of the significance of nail gun injuries, and they are not regarded as serious. In real-ity, they can cause permanent damage to tissues, nerves, and tendons which can have very costly consequences for carpen-ters and those who earn a living

with their hands. Hand injuries are a significant cause of disabili-ty and decreased productivity on the job. Serious, devastating, and even fatal injuries can also occur.

Misuse or malfunction of nail guns can cause serious injury and harm to the user, co-workers, or by-standers. Overhead positions, awkward postures, and toe-nailing are

by KAtIe sCHoFIeLD, ArM, AsP, CHst

na l GUn injUriesProven methods to reduce the risk


all situations that increase the risk of nail gun injuries. Data suggests that in some of these situations or with some tasks, a hammer and nail would be better suited.

The largest single factor that increases the risk of nail gun injury is the use of the contact trigger and locking the gun into fire mode. There are two types of triggers that are used on nail guns. The most common is the contact (restrictive) trigger. This type will allow a nail to be fired any time the nose ele-ment and trigger are depressed simultaneously, and it does not matter which is depressed first. An especially dangerous tech-nique used with this trigger is called “bounce” nailing in which the trigger is locked into the firing position and the gun fires whenever the nose is depressed. Most guns have a device that easily locks the trigger with a simple adjustment to over-ride the safety mechanism, but if it does not have this, it can easily be improvised on the job site.

This is perceived to increase pro-duction and employees can fire off many nails very quickly. The majority of puncture injuries are due to accidental misfire or dou-ble fire, and they are caused by an employee using a gun with a contact trigger. Using a contact trigger creates twice the risk of nail gun injury to employees.

The other design of trigger nail guns is called the sequen-tial trigger. The nose element must be depressed first, then the trigger second for the nail to fire. They cannot be locked into fire mode. Most injuries, especially those due to accidental misfire, can be prevented in large part by the use of a sequential trigger. Overall, the use of sequential triggers cuts the risk of injury in half as compared to a contact trigger (even after adjusting for training and experience).

In addition to the use of a sequential trigger, training is also very important and lack of training is a major risk factor. Young and less experienced employees and apprentices are consistently more likely to receive a nail gun injury. These young and less experienced employees have three times the injury rates of older employees and journeymen. Training in-cluding proper techniques, safety features, and work practices such as never pointing the gun at others, not moving around the site with a finger on the trigger, and proper hand placement and body position prevents injuries. More training is better, and the best type of training is classroom combined with hands-on. How-ever, the value and injury reduc-tion of training are only half as effective as changing from contact to sequential trigger.

The sequential trigger is a proven engineering method de-signed to remove a hazard from your workplace and reduce in-juries. However, it is still not the industry standard nor is it re-quired by any OSHA regulation. Many employees do not have a choice in their power tools or the trigger design that is available on the job site so managers and employers are highly encouraged to make the effort to protect em-ployees by purchasing guns with sequential triggers and replacing or retrofitting guns with contact triggers. In addition to using a sequential trigger, a complete and effective training program is also required to further reduce injury and protect employees, especially those who are young and inexperienced. These two methods can help TBG Members make an immediate impact on nail gun injury incidence rates and severity and reduce the risk for their employees.

Nail gun injuries can

cause permanent

damage to tissues,

nerves, and tendons

which can have very

costly consequences.

reFerenCeSAnesti, E. K. M. M., C. M. D. M. Malic, et al. (2007). “I Have a Nail “Stuck” In My Hand.” Annals of Emergency Medicine 49(2): 249-250.

Childs, S. A. (1991). “Nail Gun Injury.” Orthopaedic Nursing November/December 10(6): 15-18.

Dement, J. M., H. Lipscomb, et al. (2003). “Nail Gun Injuries Among Construction Workers.” Applied Occupational and Environmental Hygiene 18(5): 374 - 383.

Lipscomb, H. J., J. M. Dement, et al. (2003). “Nail gun injuries in residential carpentry: lessons from active injury surveil-lance.” Injury Prevention 9(1): 20-24.

Lipscomb, H. J., J. Nolan, et al. (2006). “Nail gun injuries in apprentice carpenters: Risk factors and control measures.” American Journal of Industrial Medicine 49(7): 505-513.


by ADAM trIPP, tbG Loss CoNtroL rePreseNtAtIve

associated with

TBG’s Loss Control Depart-ment offers many resources for our Members. This includes customized training, safety pro-gram development, and job site safety audits, just to name a few.

Recently there was a request to perform Noise Sampling for a landscaping company that specializes in commercial pav-ing projects. This company was visited by OSHA Enforcement and fined for an over exposure to noise while the employees were cutting pavers. Hearing protec-tion was being used but the lev-els produced still exceeded the TWAs (time weighted averages) allowed by OSHA.

addiTional noise conTrol This Member wanted to know how effective noise deadening masonry blades are, and we wanted to substantiate the claims of such products to see if there were real world safety ben-efits from using such products.

For the purpose of this ar-ticle, we focused on engineering controls and in particular differ-ent blade designs used to reduce noise in the hearing zone of the operator. Also, these results were not certified but rather an ac-curate sampling to approximate the noise savings realized by using Low Noise model masonry blades vs. traditional blades. Our

results did closely mirror similar certified studies. We took dosim-eter readings when cutting two different types of pavers; Con-crete and Clay. All of the cuts used the dry cutting method with proper ventilation to reduce the silica exposure.

noise samplinG resulTsAs you can see from the results below, the Low Noise model did, in fact, reduce the noise produced when cutting concrete pavers from 115 dba for the Esch X-treme and 110 dba for the Esch Turbo down to 106 dba. This results in between a 4 to 9 dba decrease.

Cutting PaversNoise Levels

bLADe PAver tyPe NoIse oF sAw oNLy

NoIse LeveL oF CUttING sAw

Johnstone, old blade

#1 Esch Turbo Lazercut

#2 Esch, new blade Low Noise Model

#3 Esch x-treme

#3 Esch x-treme

#4 Esch, normal clay blade

Concrete

Concrete

Concrete

Concrete

Clay

Clay

x

98 dba

94 dba

102 dba

98 dba

104 dba

115 dba

109–110 dba

106 dba

114–115 dba

116 dba

114 dba

Masonry Saw

Blue Target Saw

Blue Target Saw

Blue Target Saw

Blue Target Saw

Blue Target Saw

resULts sHow

that Low Noise

model masonry

blades do make

a difference.

When considering the negative effects of noise, any reduction is beneficial. Now by supplement-ing this with proper hearing pro-tection, the noise the employees are subjected to can be decreased down to a safe and manageable level. Also, pre-planning is im-portant when looking at the type of pavers to be cut. Clay based pavers are harder and therefore create more noise when cut. Having additional controls in place is often necessary.

whaT To look for in a sound deadeninG BladeThe design of the blade greatly affects the noise produced when cutting. As a rule of thumb, when selecting a noise reduc-ing blade look for the following characteristics:

Tooth Count – The more teeth the better

Width Considerations – Thinner blades tend to be quieter when cutting

Vibration dampening cutouts

As small as possible gullets (the cut-outs directly in front of each tooth)

Noise is cumulative, and all measures should be taken to reduce the noise levels employees are subjected to. Please contact your Loss Control Representa-tive if you have inquiries on this subject or a request for noise sampling. Also, we have resourc-es and contacts available if a Hearing Conservation Program needs to be developed.


Most successful contractors include safety as

part of their planning process. Others miss

the opportunity to prevent injuries and dis-

ruptions on their job sites by treating safety

as an isolated function; an add-on. Why

wait until things occur such as an accident

or an OSHA visit at one of your sites? We

make attempts to control hazards/conditions

by having safety/AWAIR Programs in place,

training our employees, promoting

job site safety, and implement-

ing various other strategies.

The most effective way to

control these issues is to

address them during the

pre-planning stages of the

project.

Planning and commu-

nication are arguably the most

important parts of the construc-

tion process as a whole. Every aspect of the

construction process involves pre-planning

and communication. Successful construc-

tion companies will typically pre-plan at

several critical points throughout a particular

project. These include the pre-bid and bid

stage prior to work being performed in the

field and to each major phase of construc-

tion especially critical/hazardous tasks. It’s

through effective planning and communica-

tion that the materials, equipment, workers,

subcontractors, and all of the involved proc-

esses and resources come together to create

the finished product.

Effective planning and communication

should involve everyone involved in the con-

struction process from start to finish. People

PLANNING FOR SAFETY

pre-Task planning and Communication in Construction

by JoHN PrIMozICH, CsP, ArM

tend to see things differently from time to

time and are involved at different stages of

the project so getting everyone’s input is

important. Typically those involved in the

planning process include estimators, Safety

Directors, Project Managers, Job Superin-

tendents/Foremen, field employees, other

Management members, Insurance Agents,

and Loss Control Representatives.

So what do we plan for? Anything is

fair game. No task is too large or too small,

when it comes to planning and communica-

tion. Items typically planned are:

• time lines related to materials,

• employees and subcontractors,

• meeting locations/frequency,

• equipment and resources,

• notices/posters/signage,

• emergencies/weather,

• hoisting areas,

• material staging areas,

• material disposal,

• fire prevention,

• work at heights,

• materials handling concerns,

• onsite traffic control and parking,

• crane operation, and others.

Pre-planning can be anything from

formalized meetings to a quick pre-task

or safety meeting on a job site prior to a

particular operation or phase of the project.

The key is to have constant and open lines

of communication so that effective planning

can be accomplished.

The purpose is to anticipate problems

and hazards, define your safety control

method(s), implement those controls, and

communicate them to everyone on the job.

The outcome is a smooth running job with

minimal disruptions, hazards, and injuries.

Pre-planning is a proactive process,

as should be safety. Be proactive and plan

safety into your job.


2008 Most Cited violations – More of the Same

by JAKe LeoNI, ArM, CHst, CrIs

TOP 10 VIOLATIONS

Since the inception of the Occupational Safety and Health Administration (OSHA) in 1970, it is safe to say that one thing has remained fairly consistent; the top 10 most cited safety viola-tions. Within the construction industry, most of the safety violations relate to the biggest hazard exposure – falls. In 2008, this held true with a few of the perennial mainstays making the top 10 list. For the fiscal year 2008, Scaffolding – General Re-quirements topped the list with 9,511 violations. Fall Protection – General Requirements was 3rd with 6,652 violations, and Lad-der related violations came in 8th with 2,902 violations. Other areas that made the top 10 list for most cited violations in-cluded Hazard Communication, Respiratory Protection, Lock-

out/Tagout, Electrical - Wiring Methods, Powered Industrial Trucks, Machine Guarding, and Electrical – General Require-ments.

Each year in the construc-tion industry, the number one cause of work related fatalities is falls from elevation. According to the Bureau of Labor Statistics, preliminary data gathered from 1992-2007 shows that in 2007, fatalities relating directly to falls was higher than any other year at 835. This was well above the average which was 724 work-re-lated deaths that were accounted for during this time frame. Not surprisingly, to help circumvent this problem, OSHA has made a point to severely penalize com-panies who fail to comply.

penalTies are severeIn 2007, a New York City concrete contractor was cited 17 violations (15 willful) which resulted in $877,000 in penalties. In December 2007, in response to a complaint alleging several fall hazards, an inspection was triggered. This company was

working on two 50-story condo-minium towers in New Jersey. It was concluded that the com-pany failed to provide adequate fall protection for employees exposed to falls from as high as 25 stories. Furthermore, OSHA alleged that the majority of the violations were willful because the company was familiar with the agency’s fall protection requirements. Although this is an extreme case, many other companies have suffered serious financial loss for the same type of violations, and with the latest fatality statistics, unfortunately one can expect this to continue.

cuTTinG corners could cuT inTo your BoTTom lineSo what is keeping companies from properly controlling these types of hazards? As stated by Richard Fairfax, director of OS-HA’s Directorate of Enforcement programs, “I think the biggest issue is that employers cut cor-ners.” With diminishing profit margins and strict deadlines imposed on contractors, taking the “fast track” may seem like the only way to achieve success and secure future work. Howev-er, with the focused inspections regularly conducted by OSHA’s enforcement team the costs as-sociated with non-compliance could impose an even greater financial burden on companies during these tough economic times.

Contact your TBG Loss Control Representative for as-sistance with any compliance or loss control needs you may have.

A CoMPLete LIst of the top 10

areas that received violations as

well as the top five sections cited

within each standard can be found

at www.nsc.org/plus.


IT’S THE LAWNew Independent Contractor Law

Building contractors who hire individuals in a non-employee capac-ity are advised that Minnesota law has changed effective January 1, 2009. Essentially, any individual hired by a building construction firm in Minne-sota who does not have certification as an independent contractor will be deemed an employee of the construc-tion firm, and therefore must be covered for workers’ compensation. If you intend to hire an individual as a non-employee independent contractor, the individual must first be certified by the Department of Labor and Industry.

In the fall of 2008, the Minnesota Department of Labor & Industry be-gan accepting applications for indi-viduals to be certified as independent contractors. Individuals wishing to be certified as an independent contractor must apply with the Department of Labor and Industry. Instructions on the certification process are available on the DOLI website, (www.doli.state.mn.us). For the purposes of work-ers’ compensation, unemployment compensation, occupational safety, and tax withholding, an individual performing construction work without an independent contractor exemption certificate (ICEC) will be deemed an employee of the contractor for whom they work.

To avoid adding employees you mistakenly believe are independent contractors, building contractors must request and receive an independent contractor exception certificate. The application for individuals is available at www.doli.state.mn.us/ic_apply.html. The certificate fee is $150 and is pay-able with the application.

To operate as independent con-tractors, individuals must complete

and submit the application and must meet the conditions set forth in a 9-Factor Test.

In other words, the individual must behave as an independent con-tractor and not as an employee. It is important to note building contrac-tor licenses do not satisfy the ICEC requirement for individuals.

The ICEC requirement applies to individuals working in public or private commercial and residential building construction. It applies to individuals not business entities such as corporations, LLCs, or partnerships that work as independent contractors. This new law does not apply to con-struction sales or most landscaping and clean up work.

According to the Department of Labor and Industry, this change in the law was required because as estimated by the Office of the Legislative Audi-tor, up to 14% of Minnesota employ-ers misclassified certain workers as independent contractors when actually they served as employees.

DOLI provides a checklist of items that should be contained in a contract with an independent contractor, (see www.doli.state.mn.us/pdf/icec_check-list.pdf).

Good business practices require clarity when hiring to understand when an individual worker is an em-ployee versus an independent contrac-tor and to avoid mistakenly hiring employees without taking into account risk management factors including exposure for workers’ compensation, unemployment benefits, and withheld taxes. In addition, contractors who fail to comply with the law are subject to a penalty of up to $5,000 for each violation and will be reported to state agencies including workers’ compensa-tion, unemployment insurance, and the Department of Revenue.

An individual who holds an ICeC and satisfies the following nine conditions is an independent contractor:

1. The individual maintains a sepa-rate business with their own equip-ment, materials and facilities.

2. The individual holds or has ap-plied for a Federal Tax I.D. number or has filed business or self-em-ployment income tax returns with the IRS if services were performed during the previous year.

3. The individual operates under contracts to perform specific serv-ices for set dollar amounts under which the individual controls the means of performing the services.

4. The individual incurs the primary expenses relating to the services to be performed under the contract.

5. The individual is responsible for completing the services contracted in a satisfactory fashion and is liable for failure to complete the required service.

6. This individual is paid pursuant to a contract on a commission, per job or competitive bid basis.

7. The individual has the potential to realize a profit or suffer a loss under the contract.

8. The individual has continuing or recurring business obligations.

9. The success or failure of the business depends on revenues and expenses rather than wages.

For FUrtHer qUestIoNs regarding

these new independent contractor

certification requirements, please do

not hesitate in contacting your insur-

ance agent or the builders Group.

9-FaCTor TeST

The Builders GroupBuilt By the industry for the industry

2919 Eagandale Blvd. Suite 100 Eagan, MN 55121-1214

Steinhagen enterprises, inc.

SAFETY AT WORK AWARD

AL steINHAGeN, (left) receives the safety at work Award presented by Adam tripp.

Congratulations to Stein-hagen Enterprises, Inc. for their effective approach to improve communication between management and employees. Steinhagen Enterprises recently held their Annual Safety Day. In order to address safety concerns, employees were required to submit safety related questions to the owner the week before the event. By submitting questions, they would be eligible for a raf-fle upon the completion of the training. This greatly promoted buy-in by both employees and management into safety. Once the questions were submitted, research was done to answer the questions. This approach helped add value to the training because it allowed it to be tailored to their specific concerns. Without this approach, employees may be reluctant to ask questions when around others and therefore not get their concerns addressed. A proactive safety culture cannot be achieved without communi-cation. Topics that were raised by the employees included:

Scenarios that the employees face on job sites and what methods can be used to

properly tie off (such as when working on cooling towers)

Specific questions on confined space

OSHA and DOT regulations on audible vehicle alarms

Rigging questions

Proper safety equipment inspection responsibilities

JLG certification requirements

Appropriate respirator selection

What respirator cartridges are acceptable for different tasks they face on the job sites

Once the questions were raised to the group, it became a brain-storming session to best address the exposures. We encourage all of our Members to apply similar creative practices and methods in order to improve communica-tion vertically throughout the company. For the reasons previ-ously mentioned, proper com-munication is very important to address employee concerns which will lead to effective pre-planning and better hazard control.

by ADAM trIPP, tbG Loss CoNtroL rePreseNtAtIve

TBG 2009 Q2 Spring Newsletter

Documents

Transcript of TBG 2009 Q2 Spring Newsletter