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 | Mar 23, 2017
New manual of IT connectivity guidelines for commercial developments, redevelopments released
Mobile capacity planning, conduit points of entry, and electrical resiliency are covered.
Codes and Standards | Mar 22, 2017
Brick Industry Assn. study finds brick buildings cost less than precast, metal, and glass
The study compares costs in five categories of construction.
Codes and Standards | Mar 21, 2017
Calif. shopping center is first to earn BREEAM USA In-Use certification
The certification measures and monitors environmental performance of existing buildings.
Codes and Standards | Mar 20, 2017
Professional liability insurance rates for architects and engineers expected to be stable in 2017
Premiums leveled off in 2015, and claims have been stable, helping to hold costs down.
Codes and Standards | Mar 15, 2017
Energy Star program at risk
The standard-setting initiative for energy-efficient products may be a victim of Trump budget cuts.
Codes and Standards | Mar 14, 2017
Timber Innovation Act to promote tall wood buildings introduced in Congress
The measure has bipartisan support.
Codes and Standards | Mar 13, 2017
U.S. House and Senate have voted to repeal Dept. of Labor’s 'blacklisting' rule
The rule mandates labor compliance review for federal construction contractors.
Codes and Standards | Mar 9, 2017
WiredScore forms Connectivity Advisory Committee
The committee's creation is an important step forward for the group that evaluates internet connectivity in buildings.
Codes and Standards | Mar 8, 2017
New guide examines multifamily high-performance ventilation
The focus is on cost and performance of various systems.
Codes and Standards | Mar 7, 2017
Canada’s national building codes will encompass effects of climate change
Forecasted data, not historical data, will be used as the basis for the codes.