Since the start of the year, companies have been grappling with letters from their clients (customers), in which these customers are demanding compliance with the Minimum Wage Act (MiLoG), referencing their own potential statutory liability and urging their contractors to assume additional liability on the basis of “supplemental agreements”.

Many companies have not yet developed a consistent strategy for handling the potential liability arising from the Minimum Wage Act. These companies generally face the following questions:

How should companies acting in the contractor role handle these situations? To what extent should they accept such agreements? What obligations should companies acting in the customer role impose upon their own contractors? What opportunities are there to limit the liability risks under the Minimum Wage Act?