14/06/2021
New York state legislature passes construction wage theft bill | Construction Dive
"Instead, under this bill … contractors may well find out years after
the fact that there was a problem and be left holding the bag."
For contractors to be prepared, they can specifically request a
subcontractor formally certify that all workers have been paid, or
request to view certified payroll as a condition of payment, Barlow
said. Additionally, he said, contractors can insert indemnification
provisions into contracts to shift liability back to subcontractors;
however, in the event that the subcontractor goes bankrupt, the
liability reverts back to the GC.
The five other states with wage theft laws are California, Nevada,
Maryland, New Jersey and Virginia.
Local jurisdictions are also cracking down on fraud. For example,
in light of recent incidents involving unreported cash payments by
subcontractors on construction projects, Pittsburgh Mayor William
Peduto recently signed an executive order to stop construction
companies in the city from committing tax, insurance and
workers' compensation fraud. It also aims to stop the practice of
paying workers in cash to avoid taxes.
https://www.constructiondive.com/news/new-york-state-legislature-passes-construction-wage-theft-bill/601450/?fbclid=IwAR1TwaxvIbn6qO-nuuM…
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