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 | Jul 7, 2021
Bechtel, Nautilus partner on sustainable, high-performance data centers
Facilities would use 70% less power for cooling, eliminate consumption of drinking water.
Codes and Standards | Jul 7, 2021
Surfside condo collapse could spur new legislation
Natl. Institute of Standards and Technology is investigating.
Codes and Standards | Jul 7, 2021
Intl. Code Council appoints committees to lead energy code development
One-third of appointees are government regulators.
Codes and Standards | Jul 1, 2021
COVID-19 made payment delays to contractors much worse
Only one in ten companies is always getting paid in full.
Codes and Standards | Jun 30, 2021
New resource for public sector organizations to develop energy data management program
Dept. of Energy document contains more than 30 examples of successful implementations.
Codes and Standards | Jun 29, 2021
Biden China policy may spur more increased U.S. PV manufacturing capacity
Senate bill proposes advanced solar manufacturing production credit.
Codes and Standards | Jun 28, 2021
Local and state building energy performance standards aim to curb climate change
Owners must up the ante on operations and retrofits.
Codes and Standards | Jun 24, 2021
Biden Administration will restore ‘Waters of the U.S.’ protections ended by Trump
Early revision more likely to hold up in court, says legal expert.
Codes and Standards | Jun 23, 2021
Denver unveils renewable heating and cooling plan
City releases roadmap to decarbonizing existing homes and buildings.
Codes and Standards | Jun 22, 2021
Actually, few companies plan to significantly reduce their office footprint
CBRE survey shows that many firms will continue with hybrid work.