Nonpayment of Subcontractors: Can Subcontractors Get Any Help From the Government?
The construction industry is a cornerstone of Texas’s robust economy, and timely payments are critical for maintaining the health of this sector. To ensure that contractors, subcontractors, and suppliers are paid promptly for...more
Terminating employees can be a daunting task. Failing to follow your state or local rules when terminating an employee can make the task exponentially more difficult and expensive. When a business plans on firing or laying...more
On February 7, 2024, the State of São Paulo published Resolution PGE/SP No. 06/2024, which regulates the transaction of tax or non-tax debts incurred as overdue liability with the state. Among other relevant provisions, the...more
On January 17, 2024, New York’s Appellate Division Second Department held that “manual workers” under the state labor law do not have a private right of action to pursue alleged violations of the labor law’s weekly pay...more
Building on the Consumer Financial Protection Bureau’s (CFPB’s) September 2022 Supervisory Highlights on student loan servicing (questioning transcript withholding practices), the CFPB issued a September 2023 report on...more
On 12 September 2023, the European Commission proposed a new EU Regulation on combatting late payments in commercial transactions which will revise and replace EU Directive 2011/7/EU (the Late Payment Directive). The...more
Some cases have limited California’s statutory right to withdraw from arbitration based on late fee payments, but many others have enforced this strict rule, making timely payment of arbitration fees and carefully worded...more
The California Court of Appeal recently issued an opinion that brings good news to employers in connection with California's draconian penalties for late payment of final wages....more
On February 1, the CFPB issued a proposed rule to cut the “safe harbor” amount that banks and credit card companies can charge for late fees. If finalized, the proposed rule would reduce the maximum safe harbor limit for...more
It is not uncommon for loan agreements to provide for fees, penalties, and default interest in the event of the borrower’s late payment. However, a case recently published by California’s First Appellate District — Honchariw...more
The June 2022 edition of OnSite Magazine discussed the case of J&M Interiors v. Centerton Square Owners, which addressed a subcontractor’s right to be paid under New Jersey’s Prompt Payment Act (“PPA”). Several months after...more
IRS Tax Penalties and the Tax Professional Reliance Defense - No one wants to pay federal taxes. And this truism applies more so with respect to federal tax penalties. Accordingly, clients often call upon their tax...more
Last month, in Reuter v. City of Methuen, the Massachusetts Supreme Judicial Court held that any late payment of wages by an employer results in strict liability for treble damages under the Wage Act. Prior to this ruling,...more
Late payment of final compensation just became significantly more expensive for employers with workers in Massachusetts. In an opinion on April 4, 2022, Reuter v. City of Methuen, the Massachusetts Supreme Judicial Court held...more
On April 4, 2022, the SJC held that employers must pay treble damages on late wage payments, even if the employee has not filed a Wage Act complaint with the Office of the Attorney General or a court before the payment is...more
You have a contract with Company Slow Pay/No Pay. You provide Company Slow Pay/No Pay with goods, and Company Slow Pay/No Pay pays you for those goods. Over the past year, you notice that Company Slow Pay/No Pay has become...more
The Massachusetts Supreme Judicial Court (SJC) on April 4, 2022, handed down a decision with major implications for Massachusetts employers accused of wage-and-hour law violations or late payment of wages. In Reuter v. City...more
The Internal Revenue Code (the “Code”) contains over 150 civil tax penalties for various conduct and non-conduct. One common group of penalties, associated with the late filing of a tax return and the late payment of tax,...more
The 2021 Florida Senate Bill 378 became effective as of July 1, 2021, and implemented major changes for owners, municipalities, and other local government entities that pay contractors for construction services in Florida,...more
One of the biggest risks on any construction project is non-payment. This article sets out contractual measures to mitigate non-payment risks and describes “self-help” remedies to obtain payment under United Arab Emirates...more
The CFPB recently issued a consent order against 3rd Generation, Inc., doing business as California Auto Finance (California Auto), regarding interest charged on consumers’ late payment of the fee charged for California...more
On March 11, 2021, the Pennsylvania Public Utility Commission voted to take additional steps toward returning to pre-COVID-19 pandemic procedures for collecting amounts due for public utility service in Pennsylvania. ...more
We previously wrote about a case in which a Florida appellate court strictly applied the statute requiring a commercial tenant to pay rent into the court registry during an eviction proceeding. The appellate court noted that...more
The IRS is swamped with unopened mail; however, they did not stop sending notices to clients about late payments and/or late filings until this week. In some cases, they have included an insert with the notice to explain that...more
Our note summarises key national payment moratoria measures and other reliefs related to the COVID-19 pandemic which have been introduced in various European countries and which are relevant in the context of structured...more