2025 Construction Conference Addressing Key Industry Challenges

Charlotte, North Carolina – The 2025 Construction Conference brought together industry leaders to discuss critical updates on legal changes, risk management, and ongoing challenges facing the construction sector. A significant focus of the conference was on strategies to mitigate risk and enhance the competitive position of companies as they navigate evolving regulations.

Emily Massey, a board-certified specialist in employment law in North Carolina, reaffirmed that noncompete agreements remain enforceable, countering the misconception held by many in the construction industry. Employers are encouraged to routinely review these agreements with legal counsel to ensure compliance and protection of their business interests.

The conference highlighted the current minimum salary threshold of $684 per week, which amounts to approximately $35,568 annually, for classifying employees as exempt from overtime pay. This figure is subject to change, as overtime exemption guidelines are frequently updated. Companies were advised to consult with human resources experts to navigate the complexities of these regulations effectively.

The discussion on labor regulations also touched on potential changes that may arise under the Trump administration, particularly regarding overtime rules. Employers were warned about the risks associated with misclassification of independent contractors, emphasizing that the degree of control exerted by employers can determine classification status and associated liabilities.

Reflecting on recent developments, it was noted that the National Labor Relations Board (NLRB) became more active during the Biden administration, with recent predictions about the removal of its General Counsel confirmed. This underscores the ever-shifting landscape of labor relations and the need for businesses to stay informed.

As part of promoting workplace safety, the conference featured a proposed rule by the Occupational Safety and Health Administration (OSHA) aimed at mitigating heat-related hazards. This rule calls for public hearings scheduled for June 16, 2025, and mandates breaks and hydration protocols for workers when the heat index exceeds 80°F, with additional monitoring requirements at 90°F.

Another key discussion point involved Executive Order 14173, issued on January 31, 2025, which prohibits illegal diversity, equity, and inclusion (DEI) policies within federal agencies and contractors. Although compliance with Title VII is urged, the order does not outright ban DEI initiatives, which continue to be a topic of importance within the industry.

Luke Tompkins, a commercial litigation attorney, introduced the Notice of Contract as an essential instrument for general contractors seeking protection against subcontractor liens. To be effective, this notice must be prominently displayed at the job site and filed within 30 days of the issuance of a building permit, shifting the onus onto subcontractors to maintain their claim rights.

In a session addressing insurance, Jeff Stoddard discussed the limitations of commercial general liability (CGL) insurance policies, outlining common exclusions and emphasizing that CGL is not a warranty and does not cover substandard work or repairs already stipulated in contracts. Contractors were encouraged to enhance their risk management strategies by including indemnification clauses and ensuring they are listed as additional insureds on subcontractors’ policies.

Miscommunication with insurers can lead to coverage denials, highlighting the importance of accurate representations in disputes and responses to licensing board inquiries.

Looking ahead, decisions made at the conference pointed towards upcoming legislative changes that could significantly affect housing construction and safety standards, particularly in North Carolina. Legislators received warnings about potential safety risks stemming from proposals to relax construction regulations and inspections, igniting concerns over both affordability and public safety.

The session underscored the necessity for ongoing cooperation among builders, local governments, and regulatory bodies to foster safe and affordable housing developments, ensuring that industry leaders are well-equipped to navigate the evolving construction landscape.