Submit Content

Legal Review: General Contractors Now Liable for Failures of Subcontractors to Pay Wages

By Maryland employment attorney Tom Spiggle, founder of The Spiggle Law Firm.

A law passed in Maryland in April will allow a general contractor to be sued for the failures of subcontractors to pay wages properly.

This change may put general contractors in a position where they must confirm the payment practices of any subcontractor they hire or risk additional exposure to liability.

General contractors are the companies that are hired to run an overall project and to ensure that the goal of the project is reached.

Many times, the general contractors that are hired do not have the ability to perform all the jobs called for by the project plan. To complete the project, general contractors will “sub out” the work — meaning that they will hire subcontractors to carry out specific tasks.

Subcontractors submit a bid for completing the work, and the amount of the bid is what the subcontractor is paid for the job. The subcontractor is responsible for ensuring that all its responsibilities, including proper payment of employees, are completed.

In most situations, the general contractor has no liability for any acts or failures of the subcontractor. Under Maryland law, this limitation on liability includes the failure of a subcontractor to properly pay its workers or employees. The new law changes that and allows workers who are not paid by a subcontractor to sue the general contractor for payment of those wages.

“A law like this may allow workers who go unpaid to seek repayment from a much larger entity,” said Tom Spiggle, a Maryland Wage and Hour Attorney with The Spiggle Law Firm in Maryland. “Subcontractors tend to be less stable than general contractors, which makes workers more vulnerable. The new law will place some responsibility on the general contractor to hire reputable subcontractors.”

The law should also help encourage compliance from subcontractors, who may fear that general contractors will not use them if there are any reports of failure to pay.

Workers can file claims with the State of Maryland if wages go unpaid, which will then investigate and make findings. However, this only governs work that was performed in the state.

If you are a Maryland resident that worked on a job in Virginia and failed to get paid, Virginia law will govern your claim — not that of Maryland, so be sure you are aware of the labor laws of any state you intend to work.

Recent Stories

As Arlington County continues collecting feedback on the preliminary concept plan to turn Langston Blvd into a “Green Main Street” over several decades, a few disagreements have emerged. Some say…

RSVP to learn about the Forestry and Natural Resources Plan during the virtual open house tomorrow at 7 p.m.

Within the first five minutes of Netflix’s new series Partner Track, Arlington native and Yorktown High School graduate Alexandra Turshen already has her “boss” moment by telling the new paralegal…

The Arlington Art Truck is back this fall starting October 1 with an exhibit focused on Arlington’s birds.

Now you can have fun with your family and friends when deciding where to eat!

Just hop aboard The Lunch Train and set the destination for: breakfast, brunch, lunch, dinner, or nightlife!

Features:
– No app necessary. Simply go to the website if you’d like!
– No account necessary
– Use your current location or a desired location
– Add restaurants you’re interested in, invite your friends, and play the game!

https://www.thelunchtrain.com/

Submit your own Community Post here.

Lyon Park & Ashton Heights’ biennial home & garden biennial tour is back. The tour will include contemporary custom homes, older historic bungalows as well as renovated properties. One of the stunning homes on the tour is pictured above.  In addition to beautiful & unique homes, the Villa & Vistas ’22 event will conclude with a festive reception at the Lyon Park Community Center at 414 N Fillmore Street, Arlington VA 22201. What could be better right?

All proceeds from this event will go to the Lyon Park Citizens Association (LPCA) towards our neighborhood jewel & hub, the Lyon Park Community Center (LPCC).

When: Sunday, October 2nd, Noon – 4 PM. 

Where: Meet to get your tickets and the tour map at the Lyon Park Community Center (414 N Fillmore Street) We will have a table with information outside.

Read More

Submit your own Community Post here.

Homebuying 101: Steps to Getting Pre-Approved

Are you ready to jump into homeownership or started considering it but don’t know where to start? Financial preparation is key when thinking about purchasing your first home and the first step to getting pre-approved. Join ACFCU for our Homebuying

Pink Carpet Event Charity Fashion Show

The Pink Carpet Event Charity Fashion Show will feature our fabulous breast cancer survivors slaying the runway! Designers from Baltimore and the Washington, DC Metropolitan area will bring exquisite fashion and glamour to this event. Professional male and female designs

×

Subscribe to our mailing list