Compliance Isn’t Optional: Why Temporary Labor and Jobsite Safety Go Hand in Hand

Foreman Mike had done this a hundred times. The crew was prepped. The pressure to meet deadlines was mounting. Temporary workers were checked in and ready to go. Everything seemed routine until a surprise inspection brought the entire jobsite to a halt.

The inspector needed a welder’s active certification. Mike was sure it was somewhere, maybe in the trailer or buried in someone’s inbox. But amid the blur of jobsite activity, the document had slipped through the cracks. That one missing license set off a chain reaction: halted work, a $250,000 fine, and a personal lawsuit that threatened to derail his entire career.

Stories like Mike’s aren’t rare anymore. They’re a growing reality in a construction environment that’s becoming more complex and compliance-driven by the day. As contractors increasingly rely on skilled temporary labor to meet project demands, particularly on fast-moving infrastructure and clean energy projects, the risk of compliance failure only increases. In this blog, we explore the true cost of non-compliance, how temp labor complicates the stakes, and why embracing proactive compliance practices is no longer optional; it's the backbone of a modern construction strategy.

The High Cost of Non-Compliance

Construction remains one of the most hazardous industries in the U.S. According to the U.S. Bureau of Labor Statistics, the fatal injury rate for construction workers in 2022 was 13.0 per 100,000 full-time employees, significantly higher than the all-industry average of 3.7. Falls, slips, and trips alone caused 865 fatalities, over 400 of them in construction. And more than 60% of these fatalities involved workers with less than one year on the job—a group that often includes temporary laborers.

These aren’t just numbers. They represent real lives, families, and businesses affected by gaps in training, oversight, and documentation. Every skipped safety briefing or overlooked certification increases the risk of injury, death, or devastating litigation.

And the financial toll is just as severe. In late 2024, OSHA fined a Chicago-based construction firm $1.2 million after a trench collapse killed a worker who lacked proper protections. That figure doesn’t include the downstream costs, delayed timelines, legal fees, higher insurance premiums, reputational damage, and lost contracts. According to McKinsey & Co., compliance-related project delays average 34 days, and insurance premiums can jump 25% after a serious safety violation.

Why Temp Labor Raises the Stakes

The increased use of temporary labor, while helping to solve the labor shortage, adds layers of complexity when it comes to compliance. OSHA’s Temporary Worker Initiative makes it clear: both staffing agencies and host employers are jointly responsible for ensuring temporary workers are protected under OSHA standards.

This includes:

• Ensuring proper job site orientation

• Verifying licenses and certifications

• Providing the right personal protective equipment (PPE)

• Maintaining training documentation

If a temp worker is performing high-risk work like crane operation, trenching, or electrical tasks, the host employer is required to ensure that the worker is fully certified and that those documents are readily accessible on-site. A staffing agency may handle onboarding, but compliance is a shared responsibility, and the consequences of failure usually land hardest on the general contractor.

OSHA states that ignorance of a temporary worker’s qualifications is not a defense. In 2023, over 42,000 stop-work orders were issued due to missing documentation. More than $280 million in back wages and fines were recovered in cases involving labor misclassification, improper classification, and unverified wage compliance, many of which involved temp labor on federal or state-funded projects.

Legal and Operational Risks Multiply on Government-Funded Projects

Projects tied to the Inflation Reduction Act (IRA), the CHIPS Act, or the Bipartisan Infrastructure Law carry additional layers of compliance. These include:

• Certified payroll documentation

• Prevailing wage laws

• Apprenticeship requirements

• Local hiring mandates

Each element must be tracked, documented, and auditable, including for temporary labor. A single missing or expired license can lead to contract cancellations, debarment from future bids, or reputational fallout that costs future business.

States Leading the Way in Compliance Enforcement

Across the country, state-specific regulations are tightening, and skilled temp labor is central to those compliance expectations.

California

With strict Cal/OSHA standards, labor classification laws, and strong union partnerships, California requires rigorous documentation for all workers, especially on public and commercial projects.

Texas

Home to some of the fastest-growing infrastructure and energy sectors, Texas relies heavily on temp labor. While the regulatory environment is more business-friendly, GCs and owners still demand full documentation of training, safety readiness, and verified licenses.

New York

New York City enforces Local Law 196, requiring 40 hours of Site Safety Training for all workers, including temps. Failure to comply can result in fines up to $5,000 per worker per day and immediate project shutdowns.

Florida

Post-hurricane rebuilding and rapid population growth have made compliance critical. OSHA Region 4 (including Florida) issued over $25 million in fines in 2024 alone, much of it tied to licensing and training failures during recovery work.

Illinois

Illinois enforces prevailing wage laws, requires certified apprenticeship participation, and demands thorough subcontractor screening. Chicago-area projects frequently involve union compliance checks and rigorous audits, particularly for temp labor crews.

Compliance as a Competitive Advantage

In a tight labor market, contractors who take compliance seriously aren't just avoiding risks, they’re building stronger teams and winning more work. Digitally verified, trained, and licensed temporary workers reduce incidents, shorten timelines, and increase productivity. Deloitte reports that contractors using digital compliance platforms see 23% fewer safety incidents, while Procore found that such firms complete jobs 11% faster with 17% fewer change orders.

More importantly, 89% of major clients now require digital proof of compliance before awarding contracts. Your compliance record is no longer just internal housekeeping, it’s a sales tool and a hiring magnet.

Building a Culture of Compliance

Compliance isn’t just about avoiding OSHA fines. It’s a mindset, a message, and a market advantage. It tells your crews you’re serious about safety. It tells your clients you’re dependable and professional. And it tells regulators you’re ready to meet the standard.

In today’s fast-moving environment fueled by federal funding, public pressure, and labor shortages, compliance must be embedded into every phase of the workforce supply chain. That means investing in workforce platforms that track certifications, flag expirations, and verify each temp’s readiness before they step onto the jobsite.

Because in this industry, it only takes one missing license to shut it all down. But with the right systems in place, that story doesn’t have to be yours.