General contractors in Maryland will be held liable for the failure of subcontractors to pay their employees in accordance with the state’s wage and hour law.
The new law will go into effect on October 1, 2018. GCs could be held liable for up to three times the wages owed, plus reasonable attorneys' fees and other costs.
Previously, responsibility for fulfilling wage laws had been solely the responsibility of the direct employer. The law does require that a subcontractor indemnify a general contractor for “any wages, damages, interest, penalties, or attorney's fees owed as a result of the subcontractor's violation.”
But, this protection may be meaningless if the subcontractor is unable to pay such damages. It is expected that general contractors will likely require subcontractors to obtain a bond or insurance to protect against the possibility of wage claims by subcontractor employees. This would likely increase the cost of construction projects in Maryland.
Related Stories
Codes and Standards | Oct 11, 2018
On-site staff key to energy benchmarking project for property management company
Manager training, data sharing are critical to meeting 20% utility cost reduction goal.
Codes and Standards | Oct 10, 2018
Interactive heat maps track temperature ranges in U.S. cities
Urban heat island effect can vary by as much as 37°F in the same city.
Codes and Standards | Oct 9, 2018
Power systems will become more decentralized for better disaster resiliency
Businesses, homeowners will control more power-generation capacity.
Codes and Standards | Oct 5, 2018
Getting commitments from key subs critical on government contracts
Withdrawn subcontractor bids can be costly.
Codes and Standards | Oct 4, 2018
Internal watchdog says EPA falling short to protect school children from asbestos
Agency not conducting enough inspections, report says.
Codes and Standards | Oct 3, 2018
Climate change impacts could prompt realignment of assets for commercial property developers
Strategies include reducing exposure to properties in flood-prone areas.
Codes and Standards | Oct 2, 2018
Political will, tougher standards needed to reach carbon neutral goal
Stretch codes, more stringent credentials for designers, contractors, and inspectors may be needed.
Codes and Standards | Sep 27, 2018
Natural light is the most prized office perk
Employees crave sunshine and views of the outdoors more than cafeterias, fitness centers, and childcare.
Codes and Standards | Sep 26, 2018
Industry consensus needed for multifamily energy efficiency retrofit approach
Choice of insulating materials can impact indoor air quality, resident health.
Codes and Standards | Sep 25, 2018
New market forces disrupting global real estate development industry
Executives concerned about trade policy, labor shortages, approval processes.