Roofing contractors that use sub labor or subcontractors navigate a variety of legal issues ranging from the OSHA multi-employer site doctrine to liability for subcontractor construction defects. There are a lot of legal issues to cover, such as having the pertinent contract provisions in a subcontract, as well as discussing how to use standard operating procedures on onboarding checklists to better manage 1099 labor on jobsites.

In addition to risk mitigation, there’s been a lot of focus recently on the latest changes from the Trump administration that may impact subcontract work. With President Donald Trump's second term in the White House underway, he has started making sweeping changes that will impact Americans from all walks of life. In his first week, he signed several executive orders that reverse Biden-era policies and/or introduce new guidelines and regulations. Some of these could have a significant impact on subcontractors in this country.

Energy and Infrastructure

Trump issued “Terminating the Green New Deal,” an executive order suspending all funding disbursements under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. These laws, key elements of President Joe Biden’s agenda, allocated billions for clean energy projects. The order includes a 90-day review period for federal agencies to provide spending recommendations.

This order is part of the larger “Unleashing American Energy” executive order, which focuses on the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program. It calls for a review of processes for issuing contracts, grants, and loans.

These moves could alter or eliminate many infrastructure construction projects. 

Tariffs and Trade 

With the “America First Trade Policy,” Trump has ordered federal agencies to launch an investigation into trade practices, including trade deficits, unfair currency practices, and the movement of migrants and drugs from Canada, China, and Mexico. It presents the possibility of establishing an “External Revenue Service” to manage tariff and duty collection. In addition, it calls for a comprehensive review of the U.S. industrial and manufacturing base to determine the need for additional national security-related tariffs.

Trump has long promised to impose tariffs on goods being imported into the United States from Canada, Mexico, and China. If those tariffs are put in place, the cost of construction materials could rise dramatically.

Immigration Policies

Trump signed a number of executive orders addressing immigration and the U.S.-Mexico border. These orders prohibit the granting of asylum for new arrivals at the southern border and suspend the Refugee Admissions Program.

One specific order, “Protecting the Meaning and Value of American Citizenship,” is intended to end birthright citizenship that the 14th Amendment guarantees for children of undocumented immigrants. That order is already being challenged in court. Throughout his campaign, Trump made it clear that he intends to make broad changes to immigration policies. Among these are prioritizing border security and implementing a large-scale deportation plan.

It is expected that worksite enforcement will increase, and employers could face more I-9 audits and ICE raids. These hardline stances on immigration could drastically impact the construction industry, which relies on foreign-born workers. The industry is already facing a staffing shortfall, so if immigrant workers are deported or barred from entering the country, we will likely see construction projects slow down, and labor prices increase dramatically.

WHAT YOU WILL GET:

• An understanding of the latest legal issues for subcontractors in roofing
• Strategies on handling OSHA multiemployer site doctrine and liability for subcontractor construction defects
• Expertise on pertinent contract provisions to have in a subcontract
• Insight on how recent moves by the Trump administration can impact roofing company operations
• Ideas for standard operating procedures and checklists when onboarding to better manage 1099 labor on jobsites.

The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.