S2 E74 - Most Contractors Are Breaking Labor Laws Without Knowing It
From Beers With Contractors by Beers with Contractors
June 4, 2026 · 59 min
About this episode
The episode discusses common labor law violations in the construction industry with employment attorney Tracy Melvin.
In this episode of Beers with Contractors, hosts Will introduces employment attorney Tracy Melvin of Melvin Law to discuss common employment-compliance pitfalls for construction and home services companies, especially around payroll and overtime. Tracy explains her HR-to-law background, employer-side focus, and ties to construction, then highlights frequent mistakes like misclassifying workers as independent contractors and miscalculating the “regular rate” by failing to include certain bonuses and other pay when computing overtime. They cover how audits and claims are triggered (disgruntled employees, random agency audits, state focus areas like Illinois), why early legal help can reduce fines, and examples where employers still face penalties even when practices benefited workers. Tracy outlines red flags for 1099/sub use, the complexity of multi-state rules, piece-rate risks, and clarifies discretionary vs non-discretionary bonuses and related tax issues. 00:00 Welcome and Setup 01:40 Meet Tracy Melvin 03:00 Why Employment Law 05:40 Payroll Mistakes Explained 07:36 Resources and Audits 11:09 When DOL Comes Knocking 13:52 Fines Penalties Reality 19:44 Seasonal Overtime Trap…
People in this episode
Host: Will
Guest: Tracy Melvin
Topics covered
- employment law
- labor laws
- construction compliance
- payroll mistakes
- overtime calculation
- independent contractors
- multi-state rules
Keywords
- labor laws
- employment compliance
- payroll
- overtime
- independent contractors
- subcontractor
- multi-state classification
- bonuses
- tax issues
Mentioned in this episode
Organizations: Melvin Law
Places: Illinois
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