As a roofing contractor, you’re constantly on the lookout for changes in laws and economic factors that will affect your bottom line. The cost of labor goes beyond what you pay your employees and does includes your workers compensation and general liability insurance. If you bid on any federal contracts, it’s important to understand how an increase in minimum wage will affect your business.
President Joe Biden signed Executive Order 14026 on April 27, 2021. This legislation raises the minimum wage for work completed on federal contracts and takes effect on Jan. 30, 2022. This historic law impacts the entire country, including the District of Columbia and some U.S. territories.
Not all the provisions impact the roofing industry. So, here is a summary of the changes that do:
Executive Order 14026 will cover all projects that are part of the federal infrastructure spending. So, if you win a bid on federal contracts after January 30, 2022, you’ll need to meet or exceed the $15 minimum wage. This includes renewals, extensions, and new contracts for roofing projects.
The law was designed to promote fair wages among all workers regardless of sex, race, or other protected statuses. On the bright side, higher wages may reduce the following costs:
Increased productivity and reduced turnover may result in economies of scale that make up for some of the additional labor costs. However, it’s also important to look for other savings opportunities that won’t put your business at risk.
Schedule an appointment with a Hawsey insurance agent for a complimentary audit of your existing policy for roofing contractor insurance. We can help you understand how changes to your policy affect your future risks.
Contact us today for more information on how the new minimum wage and related changes may affect your roofing contractor insurance decisions.