Subcontractors

News & Analysis as of

Accessible Technology

As most of our readers know, companies that are federal contractors and subcontractors are subject to new rules (which became effective on March 24, 2014) with respect to individuals with disabilities. The new rules amended...more

Supreme Court Makes Necessary Expansions to Whistleblower Law

The United States Supreme Court recently ruled in the case of Lawson v. FMR, LLC that people employed by a private company that is either a contractor or subcontractor or a public company are to be extended the same...more

Enforcement of 8(a) Subcontracting Limitations Likely to Increase

Last month, the Government Accountability Office issued a report at the request of Senator Claire McCaskill, who asked the GAO to review how federal agencies monitor the work performed by subcontractors under 8(a) contracts,...more

California District Court Errs in Dismissing Insurer’s Equitable Reimbursement Claim without Leave to Amend

In the contentious matter of Travelers Indemnity Company of Connecticut, et al. v. Centex Homes, et al., 2014 U.S. Dist. LEXIS 115598 (E.D. Cal. 2014), the Eastern District of California recently reconsidered its July 30,...more

Another Potential Option for Disappointed Bidders in LPTA Procurements

In today’s contracting atmosphere, government agencies are increasingly relying on procurements conducted on a lowest-priced, technically-acceptable (“LPTA”) basis. It is not uncommon in such competitions for the winning...more

Federal Contractor Minimum Wage Provisions Finalized

In July, we alerted government contractors and subcontractors to the Department of Labor’s (DoL) Proposed Rule to implement Executive Order (EO) 13658, which raises the minimum wage for covered employees working directly on,...more

Mechanics Liens — Smart Tools of Construction Industry Professionals, and Bane of Property Owners

In 1791, Thomas Jefferson and James Madison proposed the first mechanics liens legislation in order to promote development in Washington. The Maryland Assembly (which governed Washington at that time) passed the...more

Insurance Recovery Law -- Oct 2014

Lack of Direct Contractual Relationship Doesn’t Doom Coverage - Why it matters: The companies involved in a workplace accident are additional insureds pursuant to a sub-subcontractor’s policy and the insurer...more

Fail to Pay Wages in D.C. and Get Sued With Some of Your Closest Friends (and Contractors)

If you are a D.C. employer, temporary staffing agency, contractor or subcontractor, you have yet another wage and hour law to contend with: The Wage Theft Prevention Amendment Act of 2014. Among other things, the law...more

U.S. Department of Labor Announces Final Rule Raising Minimum Wage for Federal Contract Workers

On October 1, 2014, the U.S. Department of Labor announced that it would publish a final rule implementing the provisions of President Obama's Executive Order 13658 to raise the minimum wage for employees of federal...more

New California Law Holds Employers Liable for Labor Contractor’s Wage Violations

California Governor Jerry Brown recently signed into law A.B. 1897, significantly expanding the potential liability of employers who use labor contractors, subcontractors, or staffing agencies for workers. Effective January...more

U.S. Department of Labor Issues Final Rule Implementing Executive Order 13658 (Minimum Wage for Certain Federal Contractors)

On October 1, the U.S. Department of Labor announced the issuance of its final rule implementing Executive Order 13658, which establishes a minimum wage requirement for certain federal contractors. The final rule was...more

California Companies Liable for Subcontractor Wage Violations Beginning 2015

Companies that rely on labor provided by third-party contractors may be held jointly liable for wages owed to the contractor’s workers under a new California law that goes into effect on January 1, 2015. The legislation...more

California Enacts AB 1897 Which Means Greater Liability For Employers Who Use Labor Contractors

The new law targets businesses that obtain or are provided “workers to perform labor within its usual course of business from a labor contractor.” The statute’s definition of “labor contractor” excludes bona fide nonprofits,...more

Cannonball! CGL Policy Does Not Cover Pool Contractor for Subcontractor’s Negligence

In Standard Contractors, Inc. v. National Trust Ins. Co., Civil Action No.:7:14-cv-66-HL, the U.S. District Court for the Middle District of Georgia recently granted a commercial general liability insurer’s motion to dismiss...more

Construction Case Law Update - October 2014

Applying the Ameris factors, the Middle District of Florida abstained from and dismissed indemnitor’s declaratory judgment action to determine indemnity provision’s (1) scope, (2) duty to defend against third-party...more

Condo Developers Getting Relief From Washington

In an uncharacteristic bipartisan style, the House of Representatives of the U.S. Congress passed H.R. 2600 on September 26, 2013, and almost a year later, on September 19, 2014, the Senate followed by enacting S.2101....more

DynCorp Targeted with $150 Million Fraud Claim for Northrop Subcontract

Two employees have filed a lawsuit against DynCorp International Inc., a private military contractor that specializes in aviation facilities, training and equipment. According to the complaint, the employees allege that the...more

Subcontractors Can Still Perfect Mechanic’s Liens After Prime Contractors File Bankruptcy

One of the most common and effective ways for a subcontractor to secure a payment claim is to file a lien. Assuming any applicable, pre-lien notice requirements are satisfied, an unpaid subcontractor can lien a private...more

Subcontractor Claims: What Can You Do Once Your General Contractor Files Bankruptcy?

Branch Banking & Trust Co. v Construction Supervision Services, Inc. (In re Construction Supervision Services, Inc.), 753 F.3d 124 (4th Cir. 2014) – After a general contractor filed bankruptcy, several of its...more

Governor Brown Signs Bill Making Companies Liable for Employment Violations of Independent Labor Contractor Companies

This weekend, California Governor Jerry Brown signed Assembly Bill 1897. This bill creates new Labor Code section 2810.3, which applies to all but a very limited number of companies with 25 or more employees (i.e., the...more

Thumbs Up/ Thumbs Down, Still FCRA

Does your business use a contractor to provide in-home services to your customers? If so, you probably want the contractor to conduct background checks on its employees. You want the contractor to screen out people who pose...more

New California Law Imposes Liability On Companies Where Labor Contractors Fail To Pay Wages Or Provide Workers’ Compensation...

On Sunday, September 28, 2014, California Governor Jerry Brown signed into law AB 1897 (D-Hernandez), which imposes liability on companies who use subcontracted temporary labor if the temp company fails to pay wages or...more

2014 Connecticut Legislative Summary - September 2014

The 2014 regular session of the Connecticut General Assembly closed with only a few new laws on the books that will affect the design and construction industry. The summaries below highlight the most significant of these....more

Construction Case Law Update - September #2 2014

FLORIDA FEDERAL CASES - - Contribution, Equitable Subrogation, and Breach of Contract – Insurer adequately alleged elements of contribution, equitable subrogation, and breach of contract claims in construction defect...more

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