News from the Construction Suppliers Association

October 24, 2018

New Next Gen Group Starting: Reserve Your Spot Now!

Jim MoodyBy Jim Moody, CAE
CSA President

Getting kids ready to take over is one of the most significant challenges in family business. Today, it’s fairly rare to have kids interested in taking over, so when that situation exists, we have to make sure the transition is successful.

CSA’s Next Generation Learning Group is, I believe, critical in helping ensure success. We’ve done three of these three-year group programs in the past, and we have another starting in December. If you have a adult child in the business (or you ARE that adult child), please consider this opportunity.

The people who have been through these programs in the past will tell you that it changed their lives. There are people who are owners today who would not be at that point without this program. It’s that big of a deal.


Overtime Rule Delayed Until March

The Department of Labor originally planned to issue a new rule to set the minimum salary level for most overtime-exempt employees by October 2018. That date has now been moved back to March 2019.

The exempt salary threshold -- the minimum amount an employee must earn to be exempt from the Fair Labor Standards Act's (FLSA's) overtime requirement -- is currently $23,660, a level established in 2004. Labor Secretary Alexander Acosta has said the minimum salary level should be "somewhere around $33,000" to account for the rate of inflation since 2004.

Daylight Savings Time Ends: Challenges Ahead with Non-Exempt Employees

On Sunday, Nov. 4, 2018, at 2:00 a.m., daylight saving time will end, and in most states, clocks will be set back one hour, presenting a challenge for employers whose nonexempt employees are working during that time.

Below are some of the implications stemming from the end of daylight savings time:

  • Employers are required to pay employees for all hours worked. However, nonexempt employees who are working at 2:00 a.m. on Sunday, Nov. 4, must be paid one additional hour of pay unless the start/end times of their shifts are adjusted to account for the time change. Such an employee will have worked the hour from 1:00 a.m. to 2:00 a.m. twice.
  • Employers whose nonexempt employees are working at that time might owe those employees overtime compensation as a result of the time change. They must include the additional hour of work in determining the employee's overtime compensation for the week.
  • Employers must take the additional hour of work into account when computing the employee's regular rate of pay for purposes of calculating the employee's overtime rate.

Wages Subject to Social Security FICA Rise Next Year

Starting Jan. 1, 2019, the maximum earnings that will be subject to the Social Security payroll tax will increase by $4,500 to $132,900 -- up from the $128,400 maximum for 2018.

Adjust Systems, Notify Employees
Employees whose compensation exceeds the current $128,400 maximum will see a decrease in net take-home pay if they don't receive an annual raise that makes up for the payroll tax's bigger bite.

By the start of the new year, employers should:

  • Adjust their payroll systems to account for the higher taxable wage base under the Social Security payroll tax.
  • Notify affected employees that more of their paycheck will be subject to payroll withholding.
  • Take into account the increased taxes that must be paid for affected positions.
  • Expect some pushback from employees who may want to be "made whole" for their share of the extended tax hit.

6 Characteristics of Effective Teams

By Alina Vrable
Content Creator, Sandglaz Blog

Great teams don't just happen. Those teams that fit together like puzzle pieces are the result of hard work and thoughtful leadership. But what exactly are the things you need to look for when putting together a highly effective team?

Of course, each member of the team needs to have a great set of skills individually, but they also need to prove they can work well within a team. Yet this is not enough to have a highly effective team.

Members of a highly effective team should feed off each other's abilities and be able to build a relationship from the ground up.

Here are some of the characteristics of a highly effective team, according to scientific research.


Hire Slow, Fire Fast

By Greg McKeown
Harvard Business Review

A lot of start-ups hire fast and fire slow. A bias for speed combined with the pressure for high growth drives many leaders to be quick to hire (“We need to fill this role now!”) but slow to remove underperforming employees because they’re busy and would rather put off the awkward, hard conversations. It can lead to what Guy Kawasaki, when he was still at Apple, called “the bozo explosion.”

This dynamic led one Silicon Valley company through a season of undisciplined growth leading up to a massive lay-off. It was the organizational equivalent of open heart surgery: instead of having the daily discipline required to maintain a lean and entrepreneurial team, leaders waited until the organizational arteries were blocked and major systems were failing before putting the whole company into trauma through massive, corrective surgery.

Contrast that behavior with that of a 700-person company with more than a billion dollars of annual revenue. That’s a staggering 1.4 million dollars of revenue per employee -- a ratio that has been achieved carefully, by design.


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