a:\newslw.96 [4]Alan Lee MitchellStephen De'ak201999-07-06T19:08:00Z2006-07-01T22:25:00Z2006-07-01T22:25:00Z112216962 5816816711.8026 FURRER & SCOTT LLCConsider . . .VOL. 8, ISSUE 3 July, 1999Law OfficesFURRER & SCOTT LLC9185 SW BURNHAM ST. POST OFFICE BOX 23414TIGARD, OR 97223 TIGARD, OR 97281(503) 620-4540 -- (800) 334-8986 -- FAX: (503) 620-4315www.furrer-scott.comCHANGES IN CCB BOND AND INSURANCE AMOUNTSWith House Bill 2056, the 1999 Oregon Legislature has changed the amount of the surety bond and general liability insurance coverage for Oregon contractors. These new requirements went into effect on July 1, 1999.In brief, the bond requirement for general contractors has increased from $10,000 to $15,000. The bond requirement for specialty contractors has increased from $5,000 to $10,000. The insurance coverage amounts have increased only for “Residential Only” contractors; they remain unchanged for “All Structure” contractors.For current registrants, the CCB intends to implement these new requirements when contractors renew their registration. This program for existing registrants will take effect as of August 1, 1999.Anyone filing a new registration after July 1, 1999 must meet the new requirements as part of the registration application. Note that the CCB considers all of the following to be “new registrations”: changes in registration category, re-issuance of registrations that have lapsed for more than one year, and entity changes (see the following article).Also, the CCB considers any changes in a registrant’s bond or insurance coverage to be subject to the new limits. This applies even to current registrants who make these changes.The CCB has prepared a summary of the bond and insurance changes; if you have any questions or wish to obtain copies of the changes, call the CCB at (503) 378-4621, ext. 4900.House Bill 2056 also made revisions to the definition of a “Limited Contractor” and added a new registration category of “Consultant.”We thank Kristie Patton of the CCB for bringing these issues to our attention.CHANGES IN YOUR CCB REGISTRATIONAs you should know, registration with the Oregon Construction Contractors Board (“CCB”) is mandatory for persons or entities working as contractors in Oregon. What you may not know is that, as your business entity changes, so may your CCB registration requirements.This issue exists most commonly in two situations: The formation of a new corporation and changes in an existing partnership.When you form a new corporation, that is a new legal entity. This new entity must become timely and properly registered with the CCB. (See the previous article.) Do not assume that the Oregon Secretary of State’s Corporation Division with whom you have registered the corporation will inform the CCB of this change – the Corporation Division will not do this.Further, you should make sure that the corporate or other business name that is registered with the Corporation Division is the same name that is registered with the CCB.In this regard, companies should also make sure that their trade accounts are brought up to date with any corporate changes. For instance, if you had a credit agreement with a supplier under the former name, there is a question as to the impact of that agreement upon the new corporation.As to partnerships, Oregon law mandates that any change in the partners requires immediate re-registration with the CCB. See ORS 701.055(2). This means that the “new” partnership must timely and properly file a new application for registration. This is not a change in the existing registration, but an entirely new registration.Finally, contractors should be aware that the CCB defines a sole proprietorship registration to mean that only the sole proprietor is registered. Under this view, a husband and wife who are working together under the wife’s sole proprietorship registration are not properly registered. Note also that the CCB rules provide that partnerships consisting of spouses shall be treated the same as partnerships consisting of unrelated persons.WAGE AND HOUR LAWSAnyone who has employees must be aware of the wage and hour laws and their requirements. Violations of these laws, even if inadvertent, may result in serious penalties.There are both state and federal laws concerning wage and hour issues and employers must comply with both levels of laws. It is the employer’s responsibility to become familiar with these laws.The first thing that an employer must learn is the coverage of these laws. In general, it is safer to assume that these laws do apply to almost every employer and every employee.The employer is responsible for maintaining accurate records of all hours worked for all employees covered by these laws. These records must be kept for a minimum of two years under state law and three years under federal law, but should be kept for at least six years after the employee ceases his employment. The employer is also responsible for paying at least the minimum wage for all hours worked as well as time-and-a-half for any overtime hours worked.Overtime is generally defined as any hours worked over 40 hours per week. Also, Oregon law requires that overtime be paid for any time over 10 hours in one day. The maximum number of hours worked in any one day may not exceed 13 hours. For now, compensatory time off (comp time) may not be substituted for payment of overtime wages.Paydays must be regularly scheduled and met by the employer. The employer may make deductions from wages only if the deduction is required by law, the deduction is authorized in writing by the employee, or the deduction is part of a collective bargaining agreement.Upon termination (either by firing or quitting), the employer must “immediately” pay all wages earned. The exact definition of “immediately” may change in minor ways depending on the circumstances. However, failure to strictly comply with these particular laws can cause harsh results for the employer. It is imperative that employers learn and follow these laws.CELLULAR PHONES, COMPUTERS AND CONFIDENTIALITYIf you are like most modern business people, you use both a cellular telephone and a computer for many of your communication needs. Do you ever think about the confidentiality of those media? If not, you should.The fact that it may be difficult if not illegal to “tap” into your cell phone conversations or computer e-mails should not lessen your confidentiality concerns. If you think that almost no one can access these communications, then you may want to learn more about this issue.From a lawyer’s perspective, much of our communications are inherently confidential. Thus, we often try to avoid discussing sensitive matters by means of cell phone or e-mail.As you may know, disclosure of attorney-client communications may lead to a waiver of the attorney-client confidentiality privilege. Perhaps more important than the privilege is the content of the message.Again, the illegality of intercepting a cell phone call or an e-mail does not prevent someone from using that information to your detriment or to their advantage.Thus, the next time you pick up that cell phone or draft that e-mail, ask yourself the question, “If this conversation or message becomes public, can I deal with the consequences?”FIRM NEWS:MICHAEL J. SCOTT, THOMAS J. MURPHY and ALAN L. MITCHELL spoke on Oregon residential construction law issues at a June 24, 1999 seminar in Portland for Lorman Education Services.WALLACE E. TREMBATH, III joins the firm as a summer law clerk. Wally has completed his second year of law school at the University of Oregon and previously worked in construction management.This newsletter is published quarterly by the law firm of Furrer & Scott LLC for the benefit of its clients and friends and is intended to inform them about legal matters of interest. While this information is meant to be current, we do not promise or guarantee that the information is correct, complete or up-to-date. This information is not intended to be, and should not be considered to be, legal advice. No actions should be undertaken in reliance hereon without professional legal counsel. Alan L. Mitchell, Editor