News & Analysis as of

Unpaid Wages Subcontractors

Warner Norcross + Judd

How the MBTFA Protects Subcontractors, Suppliers and Owners

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The Michigan Builders Trust Fund Act (MBTFA), MCL 570.151 et seq. was signed into law in the early years of the Great Depression to protect people from fraud and misappropriation of funds in the construction industry. During...more

Fox Rothschild LLP

New Prevailing Wage Law In Illinois Puts Pressure On General Contractors To Sign Up With Unions: The Government Assisting In...

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I do a lot of prevailing wage defense and am always interested in developments in this nuanced area of wage-hour law. I have noticed a trend lately that States (e.g. New York have been legislating into effect laws that...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Illinois Governor Signs Bills Expanding Contractors’ Liability for Unpaid Wages of Subcontractors’ Workers

On June 10, 2022, Illinois Governor JB Pritzker signed House Bill 5412 and its trailer bill, House Bill 4600, into law. Both bills amend the Illinois Wage Payment and Collection Act (WPCA) to make certain primary contractors...more

Smith Gambrell Russell

New York Introduces Joint and Several Liability for Prime Contractors and Subcontractors for Unpaid Wage Claims

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New York Governor Kathy Hochul recently signed into law Senate Bill S2766-C, which amends the New York Labor Law (NYLL) and General Business Law (GBL) in relation to actions for non-payment of wages, and importantly, creates...more

Hahn Loeser & Parks LLP

New York Labor Law Creates Joint Liability for Construction Contractors

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On Labor Day, Governor Kathy Hochul signed into law an amendment to New York Labor Law that holds prime and general construction contractors jointly and severally liable for unpaid wages, benefits, and wage supplements owed...more

Fox Rothschild LLP

NY Amends Proposed Construction Industry Wage Law, But Burden On Contractors Remains

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New York appears poised to enact a modified version of legislation that would create potential liability for general contractors when their subcontractors fail to properly pay their employees. As noted in our prior...more

Jackson Lewis P.C.

General Contractors Can Face Increased Liability For Employment Actions Of Their Subcontractors

Jackson Lewis P.C. on

While general or prime contractors have always faced the risk of liability for the actions or inactions of their subcontractors, an increase risk of state statutory liability for certain actions and inactions of...more

Miles & Stockbridge P.C.

New Virginia Construction Statute: General Contractors Can Be Liable to Pay Subcontractor’s Employee Wages

Last month, Virginia’s General Assembly enacted a new law that makes contractors on large construction projects liable for unpaid wages owed to their subcontractors’ employees. Senate Bill 838, codified at Virginia Code §...more

Jackson Lewis P.C.

Are General Contractors Liable For Their Subcontractors’ Actions Or Inactions?

Jackson Lewis P.C. on

A general contractor in Southern California found itself on the hook for its subcontractor’s failure to pay wages to its workers, even though the general contractor had no knowledge of it. The case illustrates an important...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Construction One-Minute Read: Illinois Fails to Make General Contractors Responsible for All Wages on Private Projects

The big legislative news in Illinois this spring concerned the passage of a law permitting marijuana for recreational use, beginning January 1, 2020. This development overshadowed other news affecting the construction...more

Saul Ewing LLP

Illinois Considers Following Trend Toward Making General Contractors Liable for Wages of Subcontractors

Saul Ewing LLP on

A bill pending in the Illinois legislature (HB2838) exemplifies a nationwide trend in the construction industry to hold a contractor who has a direct contract with an owner (“Direct Contractor”) liable for the unpaid wage and...more

PilieroMazza PLLC

Weekly Update Newsletter - February 2019 #2

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GOVERNMENT CONTRACTING - The Small Business Administration (SBA) announced a series of workshops geared to help Native American small business communities with technical assistance and business development. The SBA will...more

Bradley Arant Boult Cummings LLP

General Contractors Working in Maryland: Amend Your Subcontract Form Now - Construction and Procurement Law News, Q4 2018

A new Maryland law – Md. Code, Lab & Empl., § 3-507.2 (the “Maryland Wage Payment and Collection Law”) – makes general contractors on public and private projects in Maryland liable for unpaid subcontractor employee wages,...more

Bradley Arant Boult Cummings LLP

Casting the First Stone: Contractors Considering Default Termination Should Examine Which Party Committed First Material Breach -...

During a construction project, circumstances may arise that lead a general contractor to consider termination of a subcontractor’s right to proceed under the subcontract. The Randy Kinder Excavating v. J.A. Manning...more

Miles & Stockbridge P.C.

New Maryland Law Greatly Expands Contractor Liability Regarding Wage Payment and Collection

Miles & Stockbridge P.C. on

On October 1, 2018, Maryland Senate Bill 853, also known as Maryland’s General Contractor Liability for Unpaid Wages Act, went into effect, expanding the liability of a general contractor on a construction project under the...more

Proskauer - Employee Benefits & Executive...

ERISA Doesn’t Preempt Nevada Law Limiting General Contractors’ Obligations To Pay Delinquent Contributions

The Ninth Circuit recently held that ERISA does not preempt a Nevada state law that curtailed the ability of multiemployer plans to recover unpaid employer contributions. Under Nevada law SB 223, general contractors can be...more

Stoel Rives -  Ahead of Schedule

Legislative Update: House Bill 4154

In February 2018, the Oregon Legislature attempted to push through House Bill 4154, which would have made a general contractor liable for unpaid wages, including benefit payments and contributions, of an employee of a...more

Robinson+Cole Construction Law Zone

California and Maryland Have Enacted Legislation Essentially Making The General Contractor the Guarantor for All Wages on the...

It’s been said that as California goes, so goes the nation. If so, general contractors throughout the country may soon be taking on more responsibility for the unpaid wages of the workers on their construction projects than...more

Baker Donelson

No, Governor Hogan Did Not Veto Maryland's General Contractor Liability for Unpaid Wages Act

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Many of you read with interest our recent article discussing Maryland's new law, the General Contractor Liability for Unpaid Wages Act. As we outlined in the article, that law makes a construction general contractor jointly...more

Snell & Wilmer

Subcontractor Wages: Closing the Loopholes

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This year California ushered in a new law effective January 1, 2018 for private works construction contracts, California’s Labor Code section 218.7. The law applies to all direct contractors who make or take the contract in...more

Stoel Rives LLP

Construction Law Alert: Proposed Legislation Would Make Contractors Liable for Unpaid Wages of Subcontractors

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A bill proposed in the Oregon House of Representatives threatens to fundamentally alter the relationships between contractors, their subcontractors, and their subcontractors’ employees. Under the bill, a contractor on a...more

Sheppard Mullin Richter & Hampton LLP

Direct Contractors In California Should Take Steps Now To Reduce Exposure For Unpaid Wages By Subcontractors

As of January 1, 2018, direct contractors in California who make or take a contract “for the erection, construction, alteration, or repair of a building, structure, or other private work” are jointly and severally liable with...more

Clark Hill PLC

Direct Contractors Potentially Liable for Subcontractors' Failure to Pay Wages

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Commencing on January 1, 2018, California has enforced and made effective AB 1701 (Labor Code § 218.7). In accordance with this new law, "direct contractors" on private works of improvements will now be directly liable for...more

BakerHostetler

"A to Z" of What California Employers Need to Know for 2018

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With the New Year come new laws that affect California employers. The following is the “A to Z” of changes in the law that may affect your business in 2018. Effective January 1, 2018, California’s Fair Pay Act will extend...more

Haight Brown & Bonesteel LLP

The Hard Hat Bulletin

On September 13, 2017 the California Legislature passed Assembly Bill No. 1701, which requires the General Contractor of a private construction project to pay all unpaid wages and fringe benefits owed to an employee of a...more

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