News & Analysis as of

Unpaid Wages Construction Industry Contractors

Davis Wright Tremaine LLP

It's Official: In Oregon, Owners and Contractors Can Be Held Responsible for Unpaid Wages of Employees of Subcontractors

On May 29, 2025, Oregon Gov. Kotek signed into law SB 426 relating to unpaid wages of employees of contractors and subcontractors on construction projects in Oregon. This new wages law will be added to and made a part of ORS...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

Saul Ewing LLP

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

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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

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

Baker Donelson

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

Baker Donelson on

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

Stoel Rives LLP

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

Stoel Rives LLP on

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

Clark Hill PLC on

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

Ervin Cohen & Jessup LLP

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

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

Littler

All Over But the Penning: the California Legislature Completes its Work for 2015

Littler on

The California Legislature adjourned its 2015 regular session early last Saturday morning.  It is now up to Governor Brown to sign or veto the last of the Legislature’s 2015 work product.  He has until Sunday, October 11, to...more

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

Indiana Employment Law Update: 5 Changes to Laws You Should Know

A number of significant changes to Indiana employment law took effect on July 1, 2015. These changes affected employer’s obligations in areas such as hiring, wages, discrimination, and termination. If employers have not...more

Snell & Wilmer

Nevada Legislature Passes Reform on General Contractor Liability for Unpaid Subcontractor Labor Benefits

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The 2015 Nevada Legislature appears to have brought common sense reform to one of the state’s most controversial statutes – NRS 608.150 – which made “original contractors” liable to its subcontractor employees (or labor...more

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