News & Analysis as of

Subcontractors

Prime Contractors Take Note of New California Law Imposing Liability for Subcontractors’ Employees’ Unpaid Wages

California is imposing greater responsibilities on prime contractors for nonpayment of wages and benefits by their subcontractors. On October 14, Governor Jerry Brown signed into law Assembly Bill 1701 (Thurmond), adding...more

Changes to Supply Chain Management and Commercial Item Contracting in FY 2018 NDAA

For Department of Defense (DoD) acquisitions, the Conference Report for Fiscal Year 2018 NDAA includes provisions that simplify and others that complicate contractor responsibilities. Proposed supply chain diligence...more

New Law Holds Contractors Liable for Subcontractors’ Non-Payment of Wages

by Ervin Cohen & Jessup LLP on

Assembly Bill 1701 (AB 1701) provides a “direct contractor” is liable for the wages, benefits and contributions (plus interest) owed by its subcontractor(s), even if the subcontractor has been paid for the work. A “direct...more

Ostensible Subcontractor Rule Does Not Apply to Similar Entities

by Davis Wright Tremaine LLP on

A recent bid protest decision confirmed that the ostensible subcontractor rule cannot apply to similarly situated entities. The rule can result in a finding of affiliation if a small business prime contractor is determined to...more

New Employment Laws Will Require Changes for Most Employers in 2018

by Farella Braun + Martel LLP on

The 2017 California legislative session resulted in several new laws that will affect employers’ day-to-day operations and policies in 2018. Some of these new laws, including bans on criminal history and salary history...more

AIG Must Defend Additional Insureds

by Nossaman LLP on

That it took an appellate court to order AIG’s Lexington Insurance to honor its additional insured obligations is a measure of how frequently insurers attempt to dodge this important contractual obligation. The case of...more

Is Your Lien Up to Code? B.C. Court Decisions Provide Clarity on Application of Builders Lien Act

The British Columbia Supreme Court (Court) recently released two decisions regarding the application of the Builders Lien Act (Act), providing clarity on limitation periods for filing a lien claim and the circumstances where...more

Can a CCIP Provide Workers' Compensation Immunity for Claims by Injured Employees of Subcontractors?

by Murtha Cullina on

In Connecticut, the answer was yes. Work-related injuries are an unfortunate reality in the construction industry, as are the lawsuits that often follow....more

Prevailing Wages: SB 96

by Best Best & Krieger LLP on

The following Q&A were from a recent Best Best & Krieger LLP free webinar “SB 96: Department of Industrial Relations’ New Prevailing Wage Penalties.” The webinar was presented as part of an ongoing series...more

Top Five Labor Law Developments For October 2017

by Jackson Lewis P.C. on

Home health aides who successfully objected to the collection of “fair share” fees without their consent may not proceed as a class, a panel of the U.S. Court of Appeals for the Seventh Circuit, in Chicago, has ruled,...more

Ownership is Not a Conclusive Factor for Ongoing Operations Additional Insured Coverage

In McMillin Management Services v. Financial Pacific Ins. Co. (No. D069814, filed 11/14/17), a California appeals court held that an insurer had a duty to defend a general contractor under an “ongoing operations” additional...more

New Requirements For City Contractors and Subs Under Philadelphia’s Whistleblower Law

by Reed Smith on

On November 13, 2017, Mayor Kenney signed an Executive Order providing additional protections for whistleblowers, as well as specific requirements for city agencies, contractor, and subcontractors in addressing complaints,...more

Court Finds General Contractor Liable For Subcontractor’s Employees

In a decision with potentially huge ramifications for the construction industry, the Fourth Circuit Court of Appeals found that employees of a framing and drywall subcontractor were also the employees of a general contractor...more

Property Damage, Occurrences, Delays, Offsets and Fees. California Decision is a Smorgasbord of Construction Insurance Issues

I read once that 97 percent of cases never go to trial. However, there are still the ones that do. And, then, there are the ones that do both. The following case, Global Modular, Inc. v. Kadena Pacific, Inc., California Court...more

Employment Law This Week®: EEOC Online Public Portal, Paid Sick Leave Preemption Law, DOL to Appeal Texas Ruling, California Law...

by Epstein Becker & Green on

We invite you to view Employment Law This Week® - a weekly rundown of the latest news in the field, brought to you by Epstein Becker Green. We look at the latest trends, important court decisions, and new developments that...more

California To Hold Direct Contractors Jointly Liable For Subcontractor’s Unpaid Wages And Fringe Benefits

by Jackson Lewis P.C. on

Beginning with contracts entered into on or after January 1, 2018, direct (general) contractors in California will be held jointly liable for their subcontractors’ unpaid employee wages, fringe benefit or other benefit...more

The Importance of Maintaining a Safe Construction Site

In October, a Florida jury found a general contractor liable for $45 million for the death of a motorist killed by one of the contractor’s trucks pulling out of a road construction job site. The case highlights the importance...more

Introduction to the FIDIC Suite of Contracts

by White & Case LLP on

The history of the FIDIC suite - Fédération Internationale Des Ingénieurs-Conseils1 (FIDIC) was founded in Belgium in 1913. Since then, it has become the foremost representative body for the world’s consulting engineers,...more

So You’re Finally Compliant with the DFARS and NIST Requirements, but Are Your Subcontractors?

As the December 31 deadline for implementation of the NIST special publication 800-171 requirements called for by DFARS 252.204-7012 (“the DFARS cyber clause”) quickly approaches, most DoD prime contractors have taken steps...more

Contractors on Private Works Now Liable for Unpaid Wages Owed by its Subcontractors

by Snell & Wilmer on

California enacted Assembly Bill 1701 on October 14, 2017, which adds section 218.7 to the California Labor Code. It applies to contracts entered into after January 1, 2018 for private construction projects....more

The 2017 AIA Changes that Matter to Owners

Last time, we discussed how some of the 2017 revisions to the American Institute of Architects (AIA) form design and construction contracts benefit general contractors. Such revisions added clarity to provisions concerning...more

New Jersey Court: Continuous Trigger Ends When Nature of Damage Is Known

by Cozen O'Connor on

Last week, the New Jersey Appellate Division issued a decision that may have a significant impact on insurance coverage for progressive property damage claims in the state. In Air Master & Cooling, Inc. v. Selective Ins. Co....more

The Road to Hell is Paved with Good Intentions: A.B. 1701’s Requirement that General Contractors Pay Subcontractor Employee Wages...

Tales of subcontractors who close up shop before paying their employees are not all that uncommon, but they are certainly not common enough to require General Contractors to pay for that same labor twice. Last month, the...more

Building a Health App? Part 6: HIPAA and Other Privacy and Security Considerations

Consumers are increasingly turning to health apps for a variety of medical and wellness-related purposes. This has in turn caused greater amounts of data—including highly sensitive information—to flow through these apps....more

NJ Courts Continue Expansion Of Insurance Coverage For Construction Defects: “Continuous Trigger” Doctrine Applied

by Cole Schotz on

New Jersey courts are continuing their trend of extending insurance coverage for third-party construction defect claims. Following last year’s NJ Supreme Court decision in Cypress Point Condo. Ass’n, Inc. v. Adria Towers,...more

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