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
| Feb 17, 2014
Channeling weather forecasts to building systems can yield significant energy savings
Using weather forecasts to predict outdoor temperature changes can lead to significant energy savings, exceeding 10%, researchers say.
| Feb 17, 2014
Lawmakers may take away control of Florida hospital project from the VA
The project is $100 million over budget and has missed its scheduled completion date.
| Feb 17, 2014
Business, labor at odds over toughening of OSHA silica dust rule
OSHA says the rules will protect workers and prevent 700 fatalities annually. Others say the rules would hurt businesses and jobs.
| Feb 17, 2014
Tulsa, Okla., mulls code change to require storm shelters in new schools
State and city officials are pushing for increased bonding capacity to pay for the storm shelters.
| Feb 13, 2014
Appraisal Institute issues guidelines on evaluating green property
The Appraisal Institute and the Institute for Market Transformation have issued guidelines for training property appraisers to evaluate green buildings.
| Feb 7, 2014
New LEED Dynamic Plaque system will measure building performance
The U.S. Green Building Council recently unveiled the LEED Dynamic Plaque, which is a new system designed for benchmarking and comparing post-occupancy building performance on a global scale.
| Feb 7, 2014
Los Angeles officials struggle to deal with needed seismic retrofits
Sixteen years ago, the Los Angeles City Council decided against requiring retrofits of existing buildings because of the projected cost and the threat of losing 20,000 apartment buildings.
| Feb 7, 2014
Los Angeles officials struggle to deal with needed seismic retrofits
Sixteen years ago, the Los Angeles City Council decided against requiring retrofits of existing buildings because of the projected cost and the threat of losing 20,000 apartment buildings.
| Feb 7, 2014
EPA, Freddie Mac collaborate on energy- and water-efficient apartments
Freddie Mac will gather data on energy and water use from property owners, and encourage lenders to spend on energy-efficient investments for multifamily housing.
| Feb 7, 2014
ASHRAE releases new refrigerant standards
The 2013 editions of ASHRAE’s major refrigerants-related standards, incorporating 41 new addenda, have been published.
