View HPSS Law eBlast Newsletters to stay up-to-date on industry news
2024 HPSS LAW NEWS
12-27-2024 HPSS NEWS ANNOUNCEMENT
Breaking News (again!): 5th Circuit Court of Appeals Reverses Course
Another Update: Corporate Transparency Act Injunction Reinstated
Here is the latest. On December 26, the Fifth Circuit Court of Appeals vacated the portion of its previous order imposing a stay on the injunction issued by the lower Federal Court. So, for the moment, the filing requirements are back on hold.
We have no confidence that this is anything close to the final answer. A panel within the Fifth Circuit is currently evaluating the merits of the constitutional arguments raised by the plaintiffs in their challenge to the enforceability of the Corporate Transparency Act. Until it is completed, however, the court has determined that the injunction should remain in effect. The court’s review remains on an expedited schedule, meaning that the situation may change again (perhaps multiple times) in the next several days or weeks.
We will continue to monitor and provide updates as new information becomes available. If you have further questions about how the Corporate Transparency Act may affect your business, please contact Scott Calhoun. You can e-mail Scott by clicking here.
12-26-2024 HPSS NEWS ANNOUNCEMENT
Filing Deadline Under Corporate Transparency Act Extended
In light of the Fifth Circuit's decision on December 23 that overturned the nationwide injunction which the lower Federal Court had issued halting the requirement for existing small businesses to file Beneficial Ownership Reports under the Corporate Transparency Act, the filing deadline has been extended until January 13.
We will continue to monitor and provide updates as new information becomes available. If you have further questions about how the Corporate Transparency Act may affect your business, please e-mail Scott Calhoun by clicking here.
12-23-2024 HPSS NEWS ANNOUNCEMENT
Corporate Transparency Act Injunction Overturned
In yet another twist to this story, the Fifth Circuit on December 23 overturned the nationwide injunction which the lower Federal Court had issued halting the requirement for existing small businesses to file Beneficial Ownership Reports under the Corporate Transparency Act. Effectively, this means that all filing deadlines are back in place, and any U.S. small business which is not exempt is again required to comply with the filing requirements put in place by FinCEN.
As we noted in our most recent update, the entire situation remains in flux. The plaintiffs in the current case may file further appeals, some of which could seek emergency relief. Earlier litigation remains ongoing, and several other appeals are currently pending. FinCEN could provide some temporary relief by offering an extension of some filing requirements, although there has been no clear indication that this might take place. In short, businesses need to assume that the filing requirements are in place and that the January 1 deadline remains applicable.
We will continue to monitor and provide updates as new information becomes available. If you have further questions about how the Corporate Transparency Act may affect your business, please e-mail Scott Calhoun by clicking here.
12-18-2024 HPSS NEWS ANNOUNCEMENT
HPSS Law Opens Lehigh Valley, Pennsylvania Office
Hendrick, Phillips, Salzman & Siegel, P.C. is pleased to announce the opening of its Lehigh Valley office located in Allentown, Pennsylvania. HPSS Law is excited to join the thriving community of construction professionals in the Lehigh Valley and is looking forward to contributing to the continuing growth and success of the industry in the region.
HPSS Law’s Lehigh Valley office is being led by J.T. Gallagher, a partner and shareholder in the firm. J.T. got his start in construction in high school working as a plumber’s helper for an Allentown-based mechanical contractor and has been working in various roles in the industry ever since. After practicing out of the firm’s Atlanta, Georgia office for several years, J.T., his wife, Stephanie, and their three boys moved back to J.T’s hometown, Macungie, Pennsylvania. J.T. believes that the Lehigh Valley is the ideal place to raise a family, build community, and thrive in new ventures. J.T. is excited to bring HPSS Law’s wealth of construction industry experience, knowledge, and expertise to contribute to the success of the flourishing construction industry in Eastern Pennsylvania.
HPSS Law’s Lehigh Valley office is located at 6081 Hamilton Blvd, Suite 600, Allentown, PA 18106. For more information about HPSS Law or to inquire about legal services in Eastern Pennsylvania, please visit HPSS Law’s website at www.hpsslaw.com, email J.T. Gallagher at jtg@hpsslaw.com, or call our Lehigh Valley office at 610-484-4459.
Corporate Transparency Act Filings Enjoined
You will recall our update in January on the filing requirements under the Corporate Transparency Act, which were implemented effective January 1, 2024. As we discussed then, the Corporate Transparency Act aims to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s financial markets. Under the legislation, businesses that meet certain criteria are required to submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details identifying individuals who are associated with the reporting company.
For companies in existence prior to January 1, 2024, these filings were required before January 1, 2025. For companies formed in the year 2024, the filings were due within 90 days after formation. For 2025 and beyond, new companies were required to file within 30 days after formation.
On December 3, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction against these filing requirements and ruled the statute unconstitutional. The court imposed its injunction on a nationwide basis. For now, therefore, these filings are not required. FinCEN has issued guidance recognizing the effect of the court’s order and acknowledging that BOI reports are not required while the court’s ruling is in effect and that anyone who fails to make a required filing is not subject to liability during that time.
Of course, this may not be the final resolution. The government has already appealed the ruling to the 5th Circuit and will likely seek the lifting of the injunction pending resolution of the underlying case. The appeals court may decide to act quickly, especially given the short time left before the initial deadline, or it may allow the injunction to remain in place until the case is decided.
Be aware, if you are inclined to make sure that you are in full compliance, that FinCEN has provided that reporting companies may continue to make voluntary filings. In that case, if the statute is upheld and the filing requirements are reinstated, companies making those voluntary filings will be in compliance without further action.
This entire situation remains in flux. Earlier litigation remains ongoing, and several appeals are currently pending. We will continue to monitor and provide updates as new information becomes available. If you have further questions about how the Corporate Transparency Act may affect your business, please contact Scott Calhoun at sdc@hpsslaw.com.
Stop the Presses! New Salary Level Test Declared Invalid
In our e-blast published on June 14, we informed you of the Department of Labor’s final rule concerning the new salary level test for classifying certain employee as exempt from overtime pay under the Fair Labor Standards Act. The rule became effective on July 1, and it raised the salary level required for what are commonly known as the white collar exemptions from $684 per week to $844 per week, beginning on July 1. Further, the rule raised the salary level to $1,128 per week, beginning January 1, 2025. The rule also increased the annual salary threshold for the highly compensated employee exemption. The salary level for the highly compensated employee was raised to $132,964 effective on July 1, and the rule raised it again to $151,164 effective January 1, 2025. Importantly, however, on November 15, the U.S. District Court for the Eastern District of Texas issued a ruling invalidating and vacating the final rule. The ruling applies to all employers throughout the country.
The court’s ruling was based on its conclusion that the DOL had exceeded its authority by effectively setting salary minimums at levels that effectively displaced the duties test component of whether a worker qualifies for an exemption.
Many companies were required to, and did, provide raises to employees on July 1, in order to keep those employees exempt from overtime pay. Those companies may now choose to roll back those salary levels, although consideration should be given to company morale before proceeding that route. Certainly, however, employers are no longer obligated to provide another raise on January 1, in order to keep the exemption.
With the change to the Trump administration coming next month, it is not anticipated that the DOL will appeal the court’s decision. We will certainly keep you informed.
Comment Period Extended for OSHA’s Proposed Heat Injury and Illness Prevention Standard
On November 29, OSHA announced that it was extending the period for submitting comments on its proposed Heath Injury and Illness Prevention Standard in Outdoor and Indoor Work Settings by 15 days. Comments may now be submitted via this link through January 14, 2025.
On the same date, OSHA also announced that it will hold a public hearing on the proposed rule. The public hearing is scheduled to begin on June 16, 2025. The hearing will be held virtually, and it will begin at 9:30 A.M. Additional information on how to access the hearing will be provided viathis link. To testify or question other witnesses at the hearing, interested periods must electronically submit a Notice of Intention to Appear on or before May 2, 2025. In addition, those who request more than 10 minutes for their presentation at the haring and those who intend to submit documentary evidence at the hearing must submit the full text of their testimony, as well as a copy of any documentary evidence no later than May 23, 2025.
It remains to be seen whether OSHA’s proposed rule will survive under the Trump administration. We will continue to provide our readers updates on the proposed rule, as it works its way through the process. In the meantime, if you have any questions regarding the proposed rule, please contact Philip Siegel. You can e-mail Philip by clicking here, or you can reach him directly at (404) 469-9197.
Dramatic Increase Expected in Immigration Enforcement: Conduct Internal Form I-9 Audits with Our Expertise
The U.S. Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) place a strong emphasis on employer compliance with employment eligibility verification regulations, and this emphasis is likely to increase significantly in the upcoming Trump administration. Most employers are expecting a dramatic increase in worksite enforcement, including potential surprise raids of companies suspected of hiring undocumented workers – particularly in the construction industry. This expectation is based on comments by Trump “border czar” pick, Tom Homan. In the first Trump administration, I-9 audits surged four-fold from the 2017-2018 fiscal year, ultimately reaching 6,450 audits in 2019. Penalties range up to $2,789 for paperwork violations and up to $27,894 per unauthorized immigrant worker who was knowingly employed. With increasing audits and penalties, the stakes for non-compliance have never been higher. Conducting internal Form I-9 audits is a proactive strategy that minimizes the risk of costly fines and reputational harm.
What Is Form I-9 and Why It Matters
Form I-9, Employment Eligibility Verification, is a mandatory document that every employer in the U.S. must complete for all new employees. This form verifies an employee’s identity and their legal authorization to work in the United States. Errors or omissions, even if unintentional, can result in substantial penalties. In fiscal year 2023 alone, ICE issued millions of dollars in fines, emphasizing the necessity of maintaining accurate and compliant records.
Benefits of an Internal Form I-9 Audit
An internal audit allows you to identify and rectify common mistakes such as missing signatures, incorrect dates, or incomplete information before a government audit occurs. Further, by addressing errors proactively, you can significantly reduce the risk of fines and penalties during an ICE audit.
How We Can Help
Our team specializes in assisting businesses with internal Form I-9 audits, leveraging our expertise to ensure compliance and mitigate risks. We can support you by meticulously reviewing your existing Form I-9s for accuracy and compliance. Further, we can provide targeted training for your HR team to address specific compliance gaps. Finally, we can advise on best practices that help you navigate the complexities of virtual document verification and E-Verify requirements. Proactive compliance is the key to avoiding the pitfalls of non-compliance. Contact us today to schedule a consultation and learn how we can assist you in conducting a thorough and effective Form I-9 audit.
For more information, please reach out to Philip Siegel at pjs@hpsslaw.com(404-469-9197) or Mark Husted at mah@hpsslaw.com (256-453-7506).
OSHA Finalizes Rule on Proper Fit Requirements for Personal Protective Equipment
On December 11, 2024, OSHA finalized a revision to the personal protective equipment (“PPE”) standard for construction, improving protections from hazardous conditions. The rule adds specific language requiring employers to provide PPE that properly fits construction industry workers. PPE includes various types of protective equipment, such as hard hats, gloves, goggles, safety shoes, welding helmets and goggles, hearing protection devices, respirators, coveralls, vests, harnesses, and full body suits.
A properly sized PPE aims to protect construction industry workers from exposure to hazards that can cause severe injuries and illnesses at a jobsite. Such injuries and illnesses may result from contact with chemical, radiological, physical, electrical, mechanical, or other hazards. Moreover, improperly sized PPE can create new hazards for workers as well as discourage use of PPE due to discomfort or ill fit. This revision comes from a longstanding industry safety concern, particularly among some women and physically smaller or larger workers.
This rule goes into effect on January 13, 2025. If you have any further questions, contact Elina Gutsaeva. You can e-mail Elina by clicking here, or you can reach her directly at 404-469-9183.
New DOL Severe Injury Report Dashboard: What Employers Need to Know
On September 4, 2024, the U.S. Department of Labor (DOL) launched its online Severe Injury Report dashboard, providing public access to data on workplace injuries. This tool allows the public to search the DOL’s Severe Injury Report database for workplace injuries from 2015 to 2023. The dashboard allows users to break down injury data by various categories, including the name of your company. That is, the public can search the database for your company’s history of workplace injuries. This, of course, raises a number of concerns.
Key Concerns for Employers
Limited Context for Injury Data:
The data in the dashboard provides information on severe injuries, but it does not include context about the circumstances surrounding each incident, such as the cause of the injury, whether safety protocols were followed, or if the injury resulted from an employee’s own negligence or failure to comply with safety procedures. This lack of detail could lead to misinterpretations or misleading conclusions about an employer’s workplace safety practices. Some factors that may influence the data but are not reflected in the injury data:
The size of the company - larger companies may report more injuries by virtue of having more employees;
The nature of the work - certain industries are inherently more dangerous than others;
Geographic or environmental factors - workplace injuries in hot climates, for example, could be wrongly generalized as an employer’s failure to manage environmental risks.
Short Timeframe of Data
The dashboard only covers injury data from 2015 to 2023, which may not provide a full picture of an employer’s safety history. The short period could lead to skewed perceptions, for example, if an employer’s recent changes to its safety programs or workplace conditions are not adequately reflected.
Risk of Increased Litigation and Governmental Oversight
As more key players—such as plaintiffs, insurance carriers, and regulatory bodies—gain access to this data, employers could face heightened exposure to legal challenges, insurance claims, or enforcement actions based on perceived safety deficiencies.
Misrepresentation of Gaps in the Data
The absence of data from states with their own workplace safety programs could be used to create a misleading narrative. Litigants might argue that employers in certain states are particularly unsafe or that the federal data reflects a more widespread issue than it actually does, as the data may not fully account for regional differences or state-specific safety regulations.
In light of these concerns, it remains to be seen whether the Dashboard survives the forthcoming transition to the Trump administration. Look to our future e-blasts for any updates.
Superior Court of Pennsylvania confirms that lien rights do not extend to suppliers of rental equipment under the Pennsylvania Mechanics’ Lien Law
In its decision in the matter of Cleveland Brothers Equipment Company, Inc. v. Arcadia North Land, LLC, issued on November 4, 2024, the Superior Court of Pennsylvania confirmed that a rental equipment supplier who had not been paid for leased equipment that was used during construction but not “incorporated into the improvement” had no lien rights under the Pennsylvania Mechanics’ Lien Law. The Court’s decision relied upon and effectively re-affirmed its October 19, 2023, decision in R.A. Greig Equipment Company v. Mark Erie Hospitality, LLC. In Grieg, the Superior Court, recognizing a lack case law on the topic and citing as its support a 1923 Pennsylvania Supreme Court case, held that the Mechanics Lien Law required construction equipment to be “‘incorporated into the improvement,’ i.e., actually used in the building structure” for it to serve as the basis for a lien. Notably, the Mechanics Lien Law itself defines “materials” as “building materials and supplies of all kinds, and also includes fixtures, machinery and equipment reasonably necessary to and incorporated into the improvement.” (emphasis supplied) 49 P.S. § 1201(7). In both Cleveland Brothers and Grieg, the Superior Court found that rental equipment used during construction (an excavator in Cleveland Brothers and telehandler in Grieg) could not serve as the basis of a lien because the equipment was not “incorporated into the improvement.” The Grieg decision, as confirmed by Cleveland Brothers decision, has made it clear that, in Pennsylvania, mechanics lien rights do not extend to suppliers of rental equipment that is utilized on construction projects.
If you have questions about this article or need guidance in relation to the Pennsylvania Mechanics’ Lien Law, please contact J.T. Gallagher at jtg@hpsslaw.com or call the firm’s Pennsylvania office at 610-484-4459.
Firm News
Hendrick Phillips Salzman & Siegel received Tier 1 recognition in the 2025 edition of the Best Law Firms® Awards. This award is bestowed to an entire legal practice at a firm by specialty and jurisdiction. These awards analyze six research initiatives collating feedback from clients, lawyers, firm leaders, and marketing teams. Our Tier 1 recognition in construction law and construction litigation for Metropolitan Atlanta is reserved for the highest scoring firms during the Best Lawyers annual review process!
We are also excited to announce that Mariya Davis recently joined our Firm. Prior to joining HPSS, Mariya was an Associate Attorney at a boutique construction law firm. Mariya also held esteemed positions of serving as a Judicial Law Clerk for both the United States District Court for the Northern District of Georgia as well as the Metro Atlanta Business Court. During law school, Mariya fine-tuned her arbitration and advocacy skills while devoting several years to Willem C. Vis International Commercial Arbitration Moot, which supports the study of international commercial law with targeted training to resolve business disputes. While in law school, Mariya was also Legal Intern for the Honorable Justice Keith R. Blackwell at the Supreme Court of Georgia, and. the Honorable Judge John J. Goger at the Superior Court of Fulton County.
Mariya earned her law degree at Georgia State University College of Law, with accolades as GSU Law Review, Associate Legislation Editor. She earned her undergraduate degree from Oglethorpe University.
Check out the headlines in our recent eblast and click below for full details on all legal matters associated with highly relevant current news and associated impacts in the construction industry.
District Court Strikes Down FTC’s Rule Banning Non-Competition Agreements
OSHA Publishes Proposed Heat Illness and Injury Prevention Standard
EEOC Releases Promising Practices for Preventing Harassment in the Construction Industry
Elina Gutsaeva recently joined HPSS Law and we’re thrilled to have her on the team.
Philip Siegel, Stephen Phillips, and Martin Salzman were selected by their peers for inclusion in the 2025 edition of The Best Lawyers in America® for their expertise in Construction Law.
Check out the headlines in our recent eblast and click below for full details on all legal matters associated with highly relevant current news and associated impacts in the construction industry.
HPSS Recognized by Construction Executive in The Top 50 Construction Law Firms™
U.S. Department of Labor Clarifies Rights to Employee Representation During OSHA Inspections
Hendrick Phillips Salzman & Siegel received Tier 1 recognition in the 2024 edition of the Best Law Firms® Awards. This award is bestowed to an entire legal practice at a firm by specialty and jurisdiction. These awards analyze six research initiatives collating feedback from clients, lawyers, firm leaders, and marketing teams. Our Tier 1 recognition in construction law and construction litigation for Metropolitan Atlanta is reserved for the highest scoring firms during the Best Lawyers annual review process!
We are very proud to announce Stephen Phillips, Martin Salzman, and Philip Siegel have been named Super Lawyers in the 2024 edition of Georgia Super Lawyers. Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates, and peer reviews by practice area.
Stephen, Martin, and Philip were also included among Georgia’s Best Lawyers in construction law by BL Rankings, LLC. For more than four decades, Best Lawyers lists have been compiled by conducting exhaustive peer-review surveys in which tens of thousands of leading lawyers confidentially evaluate their professional peers.
HPSS Law named amongst Construction Executive's 2024 The Top 50 Construction Law Firms™, June 2024
Check out the headlines in our recent eblast and click below for full details on all legal matters associated with highly relevant current news and associated impacts in the construction industry.
Firm News! Hendrick Phillips Salzman & Siegel, PC is proud to announce C. Leanne Prybylski as the firm's newest partner. Leanne has been a valuable member of the HPSS team since September, 2019, and will play a key role in HPSS's future. Congratulations, Leanne!
RECENT PODCASTS