News & Analysis as of

Prompt Payment

Wage and Hour Pitfalls Part 1: What You Need To Know

by Farrell Fritz, P.C. on

1. Employers Must Pay “Manual Workers” Weekly. In New York, employers are required to pay manual workers weekly. A “manual worker” includes “a mechanic, workingman or laborer” or individuals who spend more than 25% of...more

Michigan Supreme Court Holds That an Insurer’s Untimely Payment of Underinsured Motorist Benefits is Subject To Penalty Interest...

by Dickinson Wright on

The Michigan Uniform Trade Practices Act (UTPA) provides for 12% penalty interest on certain no-fault insurance claims that are not timely paid by the insurer. For “third party tort claimants,” penalty interest only applies...more

Subcontractors’ Strongest Protections Don’t Always Apply

Several years ago, Ohio’s legislature passed a law to provide subcontractors and material suppliers with a formidable weapon to protect their payment rights – the Ohio Prompt Payment Act. ORC 4113.62 requires that...more

New York City "Freelance Isn't Free Act" To Take Effect

by Hodgson Russ LLP on

The New York City “Freelance Isn’t Free Act” (FIFA) takes effect on May 15, 2017. The first of its kind in the country, FIFA was designed to protect independent contractors by imposing a number of strict requirements on...more

Time Is Money: A Remedy for Delay in Settlement of Commercial Insurance Claims in the UK?

by Jones Day on

Section 13A of the Insurance Act 2015 ("Section 13A") implies a term into insurance policies issued or varied after that date that requires insurers to settle claim sums due within a "reasonable time". This new provision...more

The Graber Opinion is Confirmed as an Outlier in Matters Involving Texas Appraisals

by Zelle LLP on

With the continued onslaught of hail and other weather related litigation in Texas, insurance carriers often elect to resolve claims through the appraisal process outlined in the policy. Insurance carriers historically...more

A Reprieve from the Deluge of Hail Litigation in Texas

by Zelle LLP on

In recent years, the number of Texas lawsuits arising from hail-damage claims to residential and commercial properties has reached staggering levels, leaving the courts in several Texas counties struggling to keep up with...more

New FAR Changes Incentivize Prime Contractors Not to Be Deadbeats in Meeting Their Payment Obligations to Their Small Business...

by McCarter & English, LLP on

One common complaint we hear from our subcontractor clients is “HOW CAN WE GET PAID????” Our experience has shown that whether through inadvertence, lack of subcontract management resources – or even as a predatory business...more

Healthcare Law Update: December 2016

by Holland & Knight LLP on

Prompt Payment Discounts Not an Anti-Kickback Statute Violation - In United States of Am. et al. ex rel. Ruscher v. Omnicare, No. 15-20629, 2016 WL 6407128 (5th Cir. Oct. 28, 2016), the court of appeals affirmed summary...more

Foundation: December 2016 • Vol. IV , Issue 3

by Blank Rome LLP on

We are pleased to present our last edition of Foundation for the year, and hope that you have enjoyed the issues we have put together in 2016. We have worked hard to provide you with timely and relevant articles in a...more

Forgiving Fines: The NYC Amnesty Program

by Tarter Krinsky & Drogin LLP on

In an effort to collect more than one billion dollars in outstanding fines, the City of New York is offering an amnesty program that allows participants to resolve violations received from various City agencies, including the...more

Businesses Everywhere Take Note: NYC Independent Contractor Law Will Have Impact Well Beyond the City

by Pepper Hamilton LLP on

Regardless of where a company is headquartered, it likely contracts with one or more independent contractors who live or work in New York City. If your company does so, take note. On November 16, 2016, Mayor de Blasio signed...more

New York’s Highest Court Rules that Yoga Instructors are Independent Contractors: But Can Other Employers Hold that Pose?

The New York State Court of Appeals and New York City recently provided additional guidance for – and imposed additional requirements on – New York employers that use independent contractors. In In re Yoga Vida NYC, Inc....more

“Freelance Isn’t Free” Says the New York City Council

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The “Freelance Isn’t Free Act,” passed by the New York City Council on October 28, 2016 requires, among other things, a written contract for services between a hiring party and a freelance worker in most...more

New York City to Pass Protections for Freelance Workers

by Littler on

On October 27, 2016, the New York City Council approved a bill that would establish protections for freelance workers.  It is expected that Mayor DiBlasio will sign the bill into law in the near future....more

When Can a Bondholder Insist on Prompt Payment of Principal or Interest: Recent Developments under the Trust Indenture Act

In December 2014 and January 2015, the United States District Court for the Southern District of New York issued two sets of decisions — Marblegate Asset Mgmt. v. Educ. Mgmt. Corp. and MeehanCombs Global Credit Opportunities...more

NYC Council Passes Bill Protecting Freelance Workers

Yesterday the New York City Council passed the Freelance Isn’t Free Act, a local law (No. 1017-2015) establishing protections for freelance workers. The bill now goes to the Mayor’s desk for signature....more

How Appraisal Protects Against Texas Insurance Code Abuse

by Zelle LLP on

Insurance practice in Texas has become somewhat rote. Typically, a petition is filed against both an insurance company (that is often not based or incorporated in Texas) and a local adjuster. In addition to a breach of...more

Harsh Consequences for Contractor’s False Payment Certifications in Massachusetts

On most construction projects, a project owner will require the contractor to certify that it has fully paid each of its subcontractors as a condition to the owner making payment to the contractor. The purpose of these...more

Supreme Court of Pennsylvania Holds That Under Prompt Payment Act, Imposition of Penalty and Attorneys’ Fees Is Discretionary, Not...

by Pepper Hamilton LLP on

Scott Enters., Inc. v. City of Allentown, 2016 Pa. LEXIS 1503 (Pa. July 19, 2016) - The Supreme Court of Pennsylvania reversed an order of the Commonwealth Court and held that the prompt payment provisions of the...more

California Employment Law Notes - September 2016

Ninth Circuit Strikes Down Employer's Class Action Waiver - Morris v. Ernst & Young, LLP, 2016 WL 4433080 (9th Cir. 2016) - As a condition of employment, Stephen Morris and Kelly McDaniel were required to sign...more

ERISA Preempts State Law Requiring Insurer “Prompt Payment”

Alaska’s prompt pay statute—which requires insurers to pay benefit claims within 30 days of submission—is preempted by federal laws governing employer-provided benefits and benefits for government workers, a federal judge...more

California Supreme Court Says Retiring Employees Must Be Paid Promptly

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Under Labor Code section 202, California employers must pay all wages to an employee who “quits” within 72 hours, unless the employee has given 72 hours’ notice of the intent to quit, in which case the...more

Retirees Have Standing to Assert Statutory Wage Claims

In McLean v. State of California, et al., Case No. S221554, published August 18, 2016, the Supreme Court of California held that Labor Code sections 202 and 203, which govern prompt payment of an employee’s final wages, apply...more

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

by Pepper Hamilton LLP on

Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

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