Summary: If you are employed by a subcontractor who is refusing to pay for the work performed, you may be entitled to seek compensation through the general contractor as well as your employer. Contact an attorney for more information about your legal rights and options.
Wage theft is a persistent issue for workers across a range of industries. Wage and hour violations can be particularly rampant for construction workers who often go underpaid or even unpaid. In the past, if a worker was employed by a subcontractor and was not paid correctly, there were limited options to seek payment for the wages and benefits owed.
However, thanks to legislation passed in a growing number of states, general contractors can now be held liable for unpaid wages that their subcontractors owe to workers.
If you work for a subcontractor who has failed to pay you fairly and accurately for your labor, do not hesitate to reach out to an experienced wage theft attorney for more information about your legal rights.
General Contractor Liability for Unpaid Wages
Legislation imposing liability on general contractors when subcontractors do not pay workers has appeared in numerous states over the last few years. New York, California, Nevada, and Minnesota are several notable examples. These laws aim to ensure that contractors and subcontractors can be held jointly and severally liable for wage violations.
This means that either or both parties can be held responsible for wrongdoing—even if the subcontractor was the only party who directly engaged in wage theft. Under this legislation, it is often the responsibility of a general contractor to make sure that its subcontractors are conforming with current wage laws.
General contractors tend to be more financially secure than subcontractors and typically oversee an entire construction project from start to finish. Subcontractors can be much smaller and less financially robust enterprises, often hired to perform specific tasks on a construction project. By allowing general contractors to be held liable for subcontractor wage theft, workers are provided a more reliable path to getting the payments they deserve.
Filing an Unpaid Wage Claim
Determining whether you are owed compensation and what parties are liable can be complicated. An attorney who is familiar with the legislation that makes general contractors liable for wage theft can examine potential instances of wrongdoing to determine the appropriate course of action.
Under these newer, heightened wage protections for workers, general contractors are unable to avoid liability by classifying workers as independent contractors rather than employees. Moreover, any attempt to get workers or subcontractors to sign agreements that relieve the general contractor of liability are invalid.
In addition to back pay for unpaid wages, workers who file a claim for compensation from a general contractor may also be entitled to liquidated damages. Often, the amount of liquidated damages will be equal to the employee’s award or settlement for back pay.
Get Help from an Experienced Wage and Hour Attorney
Because of new legislation imposing joint and several liabilities on general contractors for wage claims involving subcontractors, it is now easier for employees to receive the wages they deserve. Even if no direct contractual relationship exists between the general contractor and the wronged employee, this extension of liability can result in the recovery of various monetary damages, including:
- Wages
- Penalties
- Attorneys’ fees
- Interest
If you are a worker who has been affected by wage theft and need help holding a contractor or subcontractor accountable, our lawyers can help. Contact us today to request your free, confidential review. Use the chat box or our online form to get started.
