QUARTER 1 NEWSLETTER - March 2024 | |
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Message From The President
Greetings to All SFNE Members!
Here it is already, almost Spring 2024, and I’m just getting to our Year End 2023 Newsletter. (I was probably busy with CIC stuff 🙂.)
While writing this letter on Friday, 3/15/24, it’s worth noting that the Boston Bruins beat the Montreal Canadians in OT the night before!
Year-End Summary
By all accounts, SFNE had one of its most successful years in recent memory. Fabricator events, SteelDays, the Golf Tournament, and our Holiday Gathering not only resulted in record attendances, but funds were raised, and our food drive efforts were incredible. And that, folks, is what happens when membership gets involved and does their part! Thank you!
On another note, if you haven’t already heard, I was unanimously elected to another term due to an unprecedented election at the Winter Board Meeting. The Board thought it was a responsible move to do so as we continue our legislative efforts here in MA. I’m honored to continue serving, and I quote: “Every time I think I’m out…they pull me back in.”
Legislative Update
While the new NH Buy American Law SB195 is now in effect, I’m sure we’ll see more opportunities to work on public jobs there. Recently, Senator Troy Jackson, Bill LD 1983, again filed the Buy American legislation in ME. I’m sure our vice president, James McBrady, will monitor progress and keep us apprised of any necessary actions.
Our MA efforts on Bills H3108 and S2026 continue in Committee. Our efforts and achievements over the last several years continue to prove forward progress. We have never reached the highest level of the executive branch as we did this year.
My opinion is that, with the influx of the additional “newcomer” workers, I’m sure MA wants to do its part and get people trained and contributing to our workforce and economy. But to do that, they also need to make sure the work is here, too… 🙂🙂 get the connection? We’ll see if they see it that way, too!
Save the Date!
I look forward to our Spring Meeting on Thursday, May 30th, 2024, at the beautiful Beauport Hotel in Gloucester, MA. AISC’s Max Puchtel will speak on Sustainable Structural Steel and its impact on your business. I also see it as an opportunity to learn how to get an edge on your competition by offering a more climate-friendly product that aligns itself with local climate goals. Additionally, it's a great opportunity to mix and mingle with your industry peers and supportive professionals, vendors, and suppliers. Don’t miss out on another great event.
Our organization's success relies upon its members, so get involved, submit ideas and suggestions, and be part of it!
In Closing
By all means, 2023 was not the easiest year for many of us. Economic uncertainty loomed over us, high interest rates delayed and canceled some projects, and political uncertainty gave many people reasons to pause purchases and investments. However, I am cautiously optimistic that 2024 will be better. So, I wish you much safety and success for 2024, and I look forward to seeing more of you at our events.
Wishing you the best for 2024,
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Stephen J. Capone
President of the Steel Fabricators of New England
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Hollie Noveletsky Receives New Endorsements for
NH-1 Congressional Seat
Rochester, NH, Mayor Paul Callaghan announced his endorsement of GOP candidate Hollie Noveletsky for Congress in the New Hampshire 1st Congressional District. “I’m proud to endorse Hollie for Congress. As a successful CEO, I know Hollie will work to bring manufacturing back to the United States and end our reliance on China. She will also work to balance the budget and bring down inflation,” Mayor Callaghan said.
Additionally, Associated Builders & Contractors (ABC) NH/VT endorsed Noveletsky for Congress on Dec. 19th. “Hollie Noveletsky is a contractor who knows firsthand the challenges faced by our industry,” said Josh Reap, President & CEO of ABC. “We know that in Washington, Hollie will be a voice for the New Hampshire construction community, thus earning the support of the Associated Builders & Contractors.”
Hollie is the Principal of SFNE Fabricator Member company Novel Iron Works. You can read Hollie's recent op-ed in the NH Union Ledger here, and you can learn more about Hollie here!
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Government Affairs
Democrats Urge Treasury Secretary Yellen to Correctly Implement the 2022 IRA
On Oct 24, U.S. Representatives John Garamendi (D-CA) and Morgan McGarvey (D-KY) led other Democratic members of congress from steel manufacturing districts in calling on U.S. Secretary of the Treasury Janet Yellen to require that renewable energy producers claiming federal tax credits use American-made steel products. Under the Inflation Reduction Act of 2022 (Public Law 117-169), renewable energy producers can claim more generous federal tax credits if they build their wind, solar, or renewable energy projects with American-made steel. Every Republican in Congress voted against this 2022 law. However, in May 2023, the U.S. Department of the Treasury and the IRS published industry guidance incorrectly allowing renewable energy producers to use some foreign-made steel projects and still claim the more generous federal tax credit.
AISC & NSBA Join AGC in Supporting Proposed Amendment to Infrastructure Investment and Jobs Act
U.S. Senators Kevin Cramer, R-ND, and Joe Manchin, D-WV, have put forth an amendment that would restrict government funds so as not to effectuate the FHWA's proposed greenhouse gas performance measure, which would undercut our ability to fix our nation's roads and bridges (and was not approved by Congress in the IIJA). AISC and NSBA have joined the Associated General Contractors of America in urging all U.S. senators to support SA #1241. Read more here.
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2023 SFNE Holiday Party
Nearly 100 people turned out for our annual holiday party and winter meeting in Lawrence, MA on Dec. 13th. SFNE was pleased to extend complimentary registration to our Fabricator Members as a "thank you" for all your support year-round. We are proud to represent the steel fabrication and construction industry in New England and we could not do it without your generous support. Cheers to a happy and prosperous 2024!
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Thanks to Jana @ Capone Iron Corp., Shari @ ABC NH/VT, and Frances @ Airgas for submitting photos! | |
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SFNE Members Support Local Charities
Thanks to all our members who collected donations for their local charities in conjunction with our holiday party. Your generosity inspires us and we salute you!
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V & S Galvanizing in Taunton, MA | |
Capone Iron Corp. in Rowley, MA and Berlin, NH | |
Novel Iron Works in Greenland, NH | | |
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Legal Corner
DOL's Proposed Rule Regarding Independent Contractor Classification
By: Brittany M. Darcy, Esq.
On October 13, 2022, the U.S. Department of Labor (“DOL”) issued a proposed independent contractor classification rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act (“Proposed Rule”). If implemented, the Proposed Rule will: (1) rescind the existing federal Independent Contractor Rule (the “2021 IC Rule”); and (2) serve as the new practical guide directing employers to focus on a multifactor economic reality test to assess whether an individual is an independent contractor. The DOL closed the period for public comments on December 13, 2022.
The Fair Labor and Standards Act (“FLSA”) is a federal law that, among other things, governs applicable wage and hour legal parameters for non-exempt (hourly) employees, such as minimum wage and overtime. The FLSA is enforced by the DOL. The FLSA does not extend to independent contractors, and it does not define the term “independent contractor.” It defines the term “employee” as “an individual whom an employer suffers, permits, or otherwise employs to work.” According to the DOL, the FLSA’s definition is designed to “encompass all workers who, as a matter of economic reality, are economically dependent on an employer for work.” Conversely, independent contractors are individuals who, “as a matter of economic reality, [are] in business for [themselves].”
This distinction appears to be the driving force behind the Proposed Rule. Indeed, the DOL’s Proposed Rule re-focuses the independent contractor v. employee classification to the economic reality of the underlying relationship. Rather than direct employers to focus primarily on two core factors with a predetermined weight (as had been the case), the new Rule calls employers to balance the “totality-of-the-circumstances” when assessing the economic reality of the relationship between the worker and the employer.
The applicable factors when conducting an analysis under the economic reality test proposed under the Proposed Rule are as follows:
- Opportunity for profit or loss depending on managerial skill;
- Investments by the worker and the employer;
- Degree of permanence of the work relationship;
- Nature and degree of control;
- Extent to which the work performed is an integral part of the employer’s business;
- Skill and initiative; and
- Additional factors.
Notably, these factors are not exhaustive, and none carries more weight than another. The DOL included a seventh bucket for “additional factors,” recognizing that other factors may indicate whether the worker is in business for themselves, and not economically dependent on the employer for work.
Although many of these factors are not new to employers, employers should understand that—if the Proposed Rule is approved and implemented—these will be the governing factors and the applicable test moving forward.
The Proposed Rule differs from the 2021 IC Rule. Currently, the ultimate inquiry is one of economic dependence. An independent contractor is one who, as matter of economic reality, is not economically dependent on an employer for work and is in business for themselves. Specifically, the 2021 IC Rule identifies five economic reality factors for employers to balance when classifying workers. However, two factors – (1) the nature and degree of control over the work; and (2) the worker’s opportunity for profit and loss – are designated as “core” factors. Thus, if those two factors point to the same classification, then there is a “substantial likelihood” that the classification is accurate. Under the 2021 IC Rule, it is “highly unlikely” that the other three non-core factors will outweigh the combined probative value of two core factors. The 2021 IC Rule narrows the facts to be considered and prioritizes actual practice before what may be contractually or theoretically possible.
Looking ahead, if implemented, the Proposed Rule would only apply to the FLSA’s independent contractor analysis and it may reclassify many workers as employees. This in turn means that these individuals would become eligible for, among other things, minimum wage, overtime, health benefits, workers’ compensation coverage, and paid leave. Because a final rule has not yet been published, the real impact on employers and workers remains uncertain.
Employers will also be required to comply with state laws and regulations concerning worker classification. For example, Massachusetts applies the ABC Test under M.G.L. c. 149, § 148B, and employers who wish to treat someone as an independent contractor have the burden to establish that: (a) the individual has been and will continue to be free from control and direction in connection with the performance of the services provided for the employer; (b) the individual’s service is performed outside of the usual course of the employer’s business OR is performed outside of all places of business of the employer; and (c) the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that as involved in the service performed.
There is no doubt that employers should closely analyze and assess independent contractor classifications to avoid risks associated with misclassification. Worker misclassification may result in substantial penalties, such as unpaid overtime and minimum wage, liquidated damages, treble damages (state law) and attorneys’ fees – and if the IRS determines that the employer intentionally misclassified a worker, criminal charges may also arise. Employers are encouraged to periodically revisit existing worker classification to ensure worker status has not shifted due to changes in their work.
We will continue to monitor developments on these topics. Employers with specific questions are encouraged to speak with a Kenney & Sams employment attorney.
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This alert is for informational purposes only and may be considered advertising. It does not constitute the rendering of legal, tax or professional advice or services. You should seek specific detailed legal advice prior to taking any definitive actions.
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SFNE Welcomes Our New Fabricator Members
SFNE is excited to announce welcome one new Fabricator Members since Q3 2023.
North Country Iron in Northumberland, NH
SFNE Welcomes Our New Trade Members
SFNE is excited to welcome two new Trade Members since Q3 2023.
Atema, Inc. in Chicago, IL
Canam Steel Corp. in Easton, MA
IPC Lydon,LLC in Avon, MA
OAR Scanning in Claremont, NH
Terracon Consultants, Inc. in Manchester, NH
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SFNE Re-elects Board of Directors and Officers for 2024
The SFNE Board of Directors approved a resolution to extend 2023 board and officer appointments through 2024 pending an upcoming review and revision of the association's bylaws.
OFFICERS
President: Stephen Capone, Capone Iron Corp.
Vice President: James McBrady, James A. McBrady, Inc.
Secretary: Colleen Wiesbrock, Intsel Steel
Treasurer: Lori Chasse, SL Chasse Steel
Immediate Past President: Rick Coughlin, Quinn Bros Iron
DIRECTORS
Justin Auciello, Auciello Iron Works
Kris Kraft, EDM Construction
Hollie Noveletsky, Novel Iron Works
David Orlando, Berlin Steel Construction Co.
John Roy, Connecticut Galvanizing
Mike Sams, Kenney & Sams
Justin Schietinger, Intsel Steel
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Send Us Your Community Involvement, Company Events, and Projects
SFNE wants to highlight our members' projects, community involvement, company events, charitable causes, and other activites.
Did you contribute to a recent project in the New England area? Contact sfne@aisc.org to submit your content so that we can hightlight those activites on our LinkedIn page and website.
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In Other News
The Dos and Don'ts of Hiring
The average blue-collar job requires four times more hard skills than white-collar roles. The recruiting system for each industry is virtually the same, though. That's why it's important to remove the inefficiences of resumes and job posts and focus on the skills and experiences that matter. The abiliyt to adjust to the needs of the construction industry and its skilled worers gives businesses a competitive edge in this incredibly challenging labor market. Read more here.
Connecticut's Arrigoni Bridge Gains Notoriety Via U.S. Postal Service
The U.S. Postal Service has issued four new Presorted First-Class Mail stamps featuring striking photographs of bridges completed between 1938 and 2022 - including a bridge well-known to Connecticut travelers, but less so to people across the nation. The stamp art features the multi-span steel through arch Arrigoni Bridge connecting the CT municipalities of Middletown and Portland. In 1938, AISC awarded Arrigoni Bridge the title of “Most Beautiful Steel Bridge.” Read more here and here.
Nucor Announces Emilssions Reduction Plan
Nucor has unveiled a plan for reaching net-zero emissions within 30 years. The company announced that they aim to achieve net-zero greenhouse gas output by 2050, with an interim target even larger than the previously anticipated 35% reduction by 2030. The targets include scopes 1, 2, and 3 emissions from hot-rolled steel production as defined by the Global Steel Climate Council. In setting their new goal, Nucor became the first diversified steelmaker in the U.S. to establish greenhouse gas reduction targets across all three scopes. Read more here.
AISC/ASCE 2024 Student Steel Bridge Competition - Sponsorships Available!
With over 200 teams registered for this year's Student Steel Bridge Competition, there are plenty of ways to get involved with your favorite universities and give student engineers an inside look at designing with and fabricating structural steel. Check out the updated participation map to see which schools near you are competing.
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AISC Launches Free Leadership Program for Project Managers
The new three-year Career Accelerator Program with Steel (or CAPS) is designed to help project managers with fab shops, erectors, and engineering firms hone their leadership skills while building valuable connections with other project managers throughout the structural steel industry. Each year, a cohort of 60 CAPS Fellows will begin a course of specialized training during NASCC: The Steel Conference that is specifically designed to position them for success in their careers. CAPS Fellows receive complimentary registration for The Steel Conference throughout the program.
The program is free, and it is open to all AISC full members and domestic associate, affiliate, and professional members. Please contact Scott Melnick at melnick@aisc.org with any questions.
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Save the Date!
May 30th, 2024
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Mark your calendars for the SFNE Spring Meeting! This is another great opporunity for fabricators and trade members to network with colleauges, customers, and friends, all while supporting the industry in New England.
Max Puchtel, AISC's Dir. of Govt. Relations & Sustainability, will present on sustainable structural steel: what it is, how it will affect your business, and what you can do to be prepared.
Registration includes admission to the presentation and networking event, plated dinner, and two drink tickets.
You can find sponsorship and registration information at this link, and you can email sfne@aisc.org for more information.
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