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 | Sep 21, 2017
After construction crane collapses during Irma, regulations questioned
Cranes rated for 140 mph winds didn’t hold up to 100 mph gusts.
Codes and Standards | Sep 20, 2017
Energy efficiency measures pay off in some not-so-obvious ways
Access to better financing, tax incentives, rent premiums, among the benefits to greener buildings.
Codes and Standards | Sep 19, 2017
Benchmarking regulations prompt jump in green certified properties
2016 saw a slight rise in total certified U.S. green office space.
Codes and Standards | Sep 18, 2017
Changes likely to come to federal wetlands regulations
However, states may step up regulations as feds relax them.
Codes and Standards | Sep 14, 2017
Gentrification means a new mindset for city planners
Rising rents elicit reexamination of zoning principles.
Codes and Standards | Sep 13, 2017
OSHA issues extension for compliance with crane operator certification requirements
Comments on proposed rule sought through Sept. 29.
Codes and Standards | Sep 12, 2017
Washington, D.C. is first LEED Platinum city in the world
All city government buildings are powered by renewables.
Codes and Standards | Sep 11, 2017
Natural solutions would be most effective flood resilience policies for Houston
New green infrastructure should be part of rebuild.
Codes and Standards | Sep 8, 2017
Los Angeles luxury high-rise is first U.S. apartment building to achieve WELL Multifamily certification
Hollywood Proper Residences have verified indoor air and water quality features.
Codes and Standards | Sep 7, 2017
More than half of Houston properties at high or moderate risk of flooding are not in FEMA flood zone
Properties outside of these zones are not required to carry flood insurance.