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Employment Law for Contractors

Hiring by the Book: Five Essential Steps for Contractors

Observing a few basic procedures when hiring a new worker can help construction employers avoid run-ins with federal and state authorities.

In our robust building market, skilled workers are relatively scarce, and the need to fill important jobs seems to increase by the day.

  Construction Advisor

This article appeared in the March 2018 issue of Lang & Klain's "Construction Advisor"


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We are seeing signs that, in their haste to put new people to work, some construction employers are short-cutting – or ignoring altogether – important administrative steps in the hiring process. In so doing, they may be setting themselves up for costly (and avoidable) encounters with the U.S. Department of Labor and other government agencies.

Here is a reminder of five critical steps to be followed when hiring a new employee:

  1. Complete a Form I-9 for each new hire.

  2. Use the federal government’s E-Verify program to check the employment eligibility of the new potential worker.

  3. Report a new hire to the Arizona New Hire Reporting Center within 20 days of his/her hire date.

  4. Have the new hire return a completed Form W-4.

  5. Report your new employee to your workers’ compensation carrier.

Also, if the new employee is eligible for employee benefits, be sure that he or she is properly enrolled.

Depending on the circumstances, there are other steps not mentioned here that you may need to take when hiring an employee. You should consult with a human resource professional or an employment lawyer to determine what else your company must do when hiring new employees.

If you have a question about these procedures and requirements, please contact Lori Guner at 480-947-1911 or by email.