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
Smart Buildings | Jul 12, 2015
Office of Management and Budget asks agencies to consider climate change when budgeting for construction projects
For the first time, the U.S. Office of Management and Budget is asking agencies to submit budget plans that consider the effects of climate change on construction and maintenance of federal facilities.
Engineers | Jul 12, 2015
White paper explores low-flow toilets’ impact on drain lines, clogs
The research found that certain variables: toilet paper—along with the pipe slope and flush volume—are key variables in determining whether drain lines might be predisposed to clog.
Contractors | Jul 9, 2015
Opioid abuse blamed for increase in worker injuries, business losses
Insurance giant CNA says concerns are increasing in the construction industry.
Codes and Standards | Jul 8, 2015
California Supreme Court upholds affordable housing requirements
Court cites affordable housing crisis of ‘epic proportions.’
Codes and Standards | Jul 6, 2015
First valuation advisory for green and high performance property adopted
The document provides voluntary guidance to appraisers on the background and competency necessary to credibly value green buildings.
Codes and Standards | Jun 24, 2015
Maryland’s Prince George County turns to P3s to build green infrastructure
Over the next 10 years, the county must convert 15,000 acres of watertight surfaces—almost 5% of the county's total area—into surfaces that absorb or treat rainwater.
Codes and Standards | Jun 24, 2015
Philadelphia considers more incentives for green building
Developers could be allowed additional height, floor area on projects that meet benchmarks.
Codes and Standards | Jun 24, 2015
LEED building at Duke University may be retrofitted to prevent bird deaths
More birds die from colliding with buildings at Duke than on any other campus in a 45-school survey conducted by Augustana College. Duke is located along the Atlantic Flyway, a bird migration route.
Codes and Standards | Jun 24, 2015
Balcony collapse in Berkeley, Calif., prompts an examination of codes
Dry rot and too much weight appear to be the causes of a fatal accident at an eight-year-old building in Berkeley, Calif.
Codes and Standards | Jun 18, 2015
Guides to wood construction in high wind areas updated
The guides establish prescriptive, wind-resistive structural requirements for wood-frame buildings of different sizes and shapes.