Subcontractors

News & Analysis as of

Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement

In what could lead to a draconian result, the Court of Appeal for the First Appellate District held that a contractor who performs work without a valid license can be required to disgorge all payments received, even if the...more

NLRB Broadens Joint Employment Standard

Last week, the National Labor Relations Board reversed long-standing precedent and ruled that a company may be a joint employer of another company’s workers if it has the right to control those workers, even if that right is...more

NLRB Delivers New Joint-Employer Standard - Decision Leaves Franchisors, Contractors, Parent Companies, and Other Employers...

The National Labor Relations Board (NLRB or Board), in a long-anticipated 3-2 decision along party lines, established a new and broader standard for determining whether two separate companies will be deemed joint employers...more

NLRB’s New Joint Employer Standard Creates Enormous Uncertainty

Late last week, the National Labor Relations Board published a decision that will make many business leaders’ heads spin. By pronouncing a new legal standard to be used to determine if a business is a “joint employer” of...more

NLRB Issues Long-Awaited Joint Employer Decision

A recent ruling of the National Labor Relations Board (“NLRB” or the “Board”) dramatically expands the circumstances in which the Board will hold companies responsible for the labor practices of their staffing agencies,...more

Pennsylvania Commonwealth Court Explains and Applies Active Interference Exception to No Damage for Delay Clause

John Spearly Constr., Inc. v. Penns Valley Area Sch. Dist., 2015 Pa. Commw. LEXIS 337 (Pa. Commw. Ct. July 24, 2015) - This action arose out of the construction of a biomass boiler system for the Penns Valley Area School...more

Workers’ Compensation Update: Commonwealth Court Clarifies “Written Contract” Requirement for Independent Contractor...

In 2010, the Pennsylvania Legislature enacted the Construction Workplace Misclassification Act (CWMA), which, in part, attempted to clarify who is and is not an independent contractor (in the construction industry) for the...more

What are the three most important risk-shifting provisions contractors and subcontractors should be concerned about?

“No damages for delay” clauses: “No damages for delay” clauses allocate the risks of project delays and disruptions between the owner and contractor. Oftentimes, these clauses preclude a contractor from recovering...more

Construction Law Advisory - August 2015

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

The Times They Are A-Changin: National Labor Relations Board Revises The Joint-Employer Test After More Than Thirty Years

After more than 30 years, the National Labor Relations Board (the “Board”) has concluded that it was time to change the standard for determining when companies are to be considered joint employers under the National Labor...more

National Labor Relations Board Tosses More Than 30 Years of Precedent in Joint Employer Inquiry – Other Agencies to Follow?

On Thursday, August 27, the National Labor Relations Board (“NLRB” or the “Board”) issued its ruling in Browning-Ferris Industries of California, Inc., altering decades of precedent about the standard required to be held as a...more

NLRB Expands Joint-Employer Standard: Exercising Direct Control No Longer Required

The National Labor Relations Board (“NLRB”) overturned decades-old precedent by vastly expanding its definition of “joint employer,” upending established federal labor law and creating tremendous uncertainty for companies....more

Pennsylvania’s Contractor and Subcontractor Payment Act Does Not Apply to Public Projects

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

Board’s Decision Revises Joint-Employer Status Test

On August 27, 2015, the National Labor Relations Board (Board) issued a split decision (3-2) that drastically changes the test for determining whether an entity is considered a “joint employer” for purposes of collective...more

Red Flags for Homebuilders Related to DOL's Latest Guidance on Independent Contractors

On July 15, 2015, the U.S. Department of Labor (DOL) issued an “Administrator’s Interpretation” (AI 2015-1) providing guidance on whether workers are employees or independent contractors under the Fair Labor Standards Act...more

NLRB’s Expanded “Joint Employers” Test: The Employers’ Perspective

The decision by the National Labor Relations Board (NLRB) last week in BFI Newby Island Recyclery expands the circumstances in which two otherwise separate and independent employers may be found to be joint employers of a...more

Life After Browning-Ferris: What Employers Need to Know Under the New Joint Employer Regime

Many employers have rested long and easy in the knowledge that the National Labor Relations Board would not consider them to be joint employers with entities such as franchisees, staffing agencies, and contractors unless they...more

Just in Time for Labor Day – Employees You Didn’t Know Were Yours

The National Labor Relations Board (“NLRB”) on August 27, 2015, issued a sweeping decision that overturned decades of precedent and created a new standard for determining when two (or more) entities are “joint employers” for...more

NLRB: When the Law is Not the Law – A Huge Change in Business Relationships

The National Labor Relations Board (NLRB) in a 3-2 decision last Thursday gutted more than 30 years of legal precedent when it changed the joint employer standard in business relationships in a case involving Browning-Ferris...more

National Labor Relations Board Issues Controversial Decision Regarding Who is A Joint Employer

One of the most fundamental concepts under federal labor law is identifying who is the employer. Under the National Labor Relations Act, “the employer” has a duty to bargain with the union representing its employees, is bound...more

DoD's New Cybersecurity and Cloud Standards and Reporting Requirements

The Department of Defense (DoD) released interim rules implementing provisions of the 2013 and 2015 National Defense Authorization Acts. The rules, released on Aug. 26, 2015, are effective immediately and establish the...more

Too Close for Comfort? NLRB Departs from Long Standing Joint Employer Standard

Citing “changing economic circumstances, particularly the recent dramatic growth in contingent employment relationships,” in Browning-Ferris Industries of California, Inc., 362 NLRB No. 186 (August 27, 2015), a 3-2 National...more

Don’t Guess On How to Assert A Mechanic’s Lien

Many contractors and subcontractors have learned this the hard way: failure to comply with the filing and notice requirements for a mechanic’s lien can result in losing the lien and an effective way of ensuring payment for a...more

How Will Browning-Ferris Change the Test for Joint-Employer Status for Union and Non-Union Employers?

In a ruling that will affect most business relationships and extends far beyond either labor law or the concept of employment generally, the National Labor Relations Board (“NLRB” or “Board”) issued a much awaited decision...more

Construction & Engineering Toolkit: The Construction Industry Tax Deduction Scheme (CIS) - August 2015

In This Issue: The Construction Industry Tax Deduction Scheme (CIS) The Construction Industry Scheme (or CIS, as it is more commonly known) is a tax deduction scheme. It concerns construction work and...more

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